This Lazy but Avoidable Banking Mistake Could Cost You $8,000 in 5 Years
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For years, I kept my emergency fund in the same savings account I opened in high school. It was convenient. I didn't have to think about it. But when I finally looked at what I was earning in interest, I wanted to kick myself.
Here's the mistake: Leaving money in a traditional big-bank savings account that pays practically nothing.
The difference in dollars
Let's do the math with $20,000 in savings:
- A typical big-bank account pays around 0.01% APY. Over five years, that balance would earn you about $10 total.
- Move that same $20,000 to a high-yield savings account paying 4.00% APY, and you'd earn about $4,330 in interest over five years.
- That's a gap of more than $4,300, just for clicking a few buttons.
Double that balance to $40,000, and you're looking at nearly $8,700 in lost interest over the same period.
This isn't about taking risks, it's about not leaving money on the table.
Why people stick with bad accounts
The number one reason people stick with bad accounts is laziness. It feels easier to leave things where they are. Banks know this, and they're counting on your indifference. But the truth is, switching to a high-yield savings account takes less than 10 minutes, and plenty of online banks have $0 minimums.
Where your money should go instead
With an HYSA, your money stays safe, liquid, and actually earns a return. It's the simplest upgrade you can make to put your savings to work.
These accounts pay interest rates that are often 20 to 30 times higher than what big traditional banks offer. It really only does take minutes to open a new account.
One account offering a top-tier APY right now that can be opened with as little as $1 is the NexBank High-Yield Savings Account from Raisin. Earn a jaw-dropping 4.26% APY on your savings and open and operate your account fully online.
NexBank High-Yield Savings Account from Raisin
= Best
= Excellent
= Good
= Fair
= Poor
= Best
= Excellent
= Good
= Fair
= Poor- High APY
- No monthly service fee
- Unlimited ACH transfers
- FDIC insured
- Deposits and withdrawals can only be conducted via ACH transfer to/from an external bank account (limited to one linked external account)
- No checking account offered through Raisin
- No branch access; online only
With a 4.26% APY -- one of the highest rates on any account we recommend -- the NexBank High-Yield Savings Account from Raisin stands out for savers who want serious returns with minimal effort. You only need $1 to open, and FDIC insurance through NexBank keeps your money protected. Raisin's secure online platform gives you 24/7 access to funds, and there's even a cash bonus opportunity if you deposit at least $10,000 within 14 days -- with higher deposits earning bigger rewards, up to $1,000. It's a no-fuss, set-it-and-forget-it option for growing your savings at a top rate.
Don't let laziness cost you
Five years from now, you could be thousands of dollars richer, or you could still be earning pennies because you didn't bother to switch.
It's one of the easiest financial wins out there, and you only have to do it once.
Check today's best high-yield savings accounts and move your money before another month slips by.
Our Research Expert
Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.