This Is the Most Expensive Mistake People Make With Their Savings

Still keeping your money in a traditional savings account? If so, it's likely costing you hundreds of dollars a year in interest.

Right now, the average savings account APY is just 0.38%, according to the Federal Reserve. But some of the best high-yield savings accounts (HYSAs) are paying 4.00% APY or more -- over 10 times the average.

Here's what to know about HYSAs and how easy it is to make the switch.

A quick switch could earn you hundreds more

Let's say you've got $8,000 in your savings account. At 0.38% APY, that earns around $30 a year -- enough to buy yourself a decent meal.

Move it to a high-yield savings account that earns 4.00% APY, though, and you'd earn about $320 annually -- almost $300 more, and enough to buy a new pair of AirPods. Not bad.

You're also not risking anything by switching. Just like old-school savings accounts, HYSAs are FDIC-insured up to $250,000 and offer complete access to your money at all times.

The best ones also have no monthly fees or account minimums, making them an ideal place to stash emergency funds and short-term savings.

Switching only takes a few minutes

Opening a high-yield savings account is fast and easy. Here's how to do it:

1. Compare top HYSAs -- Look for one with a high APY and no fees.
2. Apply online -- Most applications take only a few minutes.
3. Move your money to your new account.
4. Move direct deposits and other automatic transfers to your new account.
5. Close your old account if it no longer serves a purpose.

Once your funds are in the new account, they'll start earning more immediately -- no extra effort needed.

Should you keep your old savings account?

Most HYSAs are offered by online-only banks. That means you might want to hold on to your traditional savings account for physical branch access, especially if you often handle large amounts of cash.

That's cool. But to earn the most interest, you'll want to move the majority of your money to your new account -- just leave enough in your old account to avoid minimum balance fees.

Otherwise, high-yield savings accounts are the smarter move, full stop. With one simple switch, you can easily earn hundreds more every year -- all with zero added risk.