This Savings Account Mistake Could Cost You $2,000 by 2030
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Do you know your savings account's interest rate? If not, then you could be in for a nasty surprise.
The most popular banks in the U.S. -- including Chase, Wells Fargo, and Bank of America -- pay rates so low that you could be missing out on hundreds of dollars every year.
If you put $10,000 in one of these banks' savings accounts, you'd earn $5 in interest over the next five years. If you instead put that money in a high-yield savings account, you could earn $2,000 or more.
I'll show you how -- and I'll recommend a few banks that pay their customers a lot more.
The true cost of a low savings APY
A lot of big banks, like the ones mentioned above, pay 0.01% APY on their standard savings accounts. Some pay a little more if you meet certain requirements.
Why? Because they get away with it. Millions of people stick with these banks (and their rock-bottom interest rates) because switching banks seems like a hassle.
Meanwhile, the best high-yield savings accounts pay around 3.50% to 4.50% APY -- hundreds of times more.
Here's how much a low APY could cost you over the next five years, depending on your balance.
| Starting Balance | Interest Earned at 0.01% APY | Interest Earned at 4.00% APY |
|---|---|---|
| $5,000 | $2.50 | $1,083 |
| $10,000 | $5 | $2,167 |
| $20,000 | $10 | $4,333 |
While these big banks rake in massive profits, their savings customers are earning a penny on the dollar. So do yourself a favor: stop being loyal to a stingy bank.
Three better savings accounts to consider
Here are three high-yield savings accounts (HYSAs) that are much more generous, with high APYs, no monthly fees, and FDIC insurance. The highest APYs come with some requirements, but anybody can earn at least 3.90% APY.
1. If you direct deposit $1,500+ per month: Axos ONE®
The Axos ONE® combo checking and savings account pays a top-tier APY of up to 4.31% on savings balances if you:
- Receive $1,500 per month in qualifying direct deposits
- Maintain an average daily balance of $1,500 or more
Most people could earn up to 4.31% APY just by direct depositing their paychecks and keeping $1,500 or more in the account.
At that APY, a $10,000 deposit would earn $2,468 over the next five years.
Click here to learn more and open an Axos ONE® savings account today.
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Axos ONE®
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- Earn a competitive APY on checking and savings
- Pay no monthly maintenance or account fees
- No cap on how much you can save
- Access to fee-free ATM network
- Extra conditions required to earn the advertised rate
- No physical branches for in-person help
The Axos ONE® bundle makes your money work overtime – all under one roof. Meet the direct deposit and balance requirements, and you’ll earn up to 4.31% APY on savings and up to 0.51% APY on checking, some of the highest rates we’ve seen lately. There are no physical branches, but you can still access cash easily through a network of over 95,000 fee-free ATMs. It’s a simple, high-reward setup that actually pays off.
The Annual Percentage Yield (APY) is accurate as of 12/2/2025. The base and promotional interest rate and corresponding APY for Axos ONE® Checking is variable and is set at our discretion. The base and promotional interest rate and corresponding APY for Axos ONE® Savings is variable and is set at our discretion. Axos ONE® Savings is a tiered variable rate account. Axos ONE® Checking is a non-tiered variable rate account. Interest rates may change as often as daily without prior notice. Fees may reduce earnings.
Promotional terms and conditions are subject to change or removal without notice. Incentive may be taxable and reported on IRS Form 1099-MISC. Consult your tax advisor. After the accounts are opened, the amount of incentive earned will depend on meeting the additional requirements outlined below.
The Axos ONE® Checking account will earn a base rate of 0.00% APY. The Axos ONE® Savings account will earn a base rate of up to 1.00% APY.
Axos ONE® accounts are eligible to receive a promotional APY for each statement cycle where the promotional criteria are met during the Qualification Period. To receive the promotional APY on both Axos ONE® Checking and Axos ONE® Savings, the Axos ONE® Checking account must meet both of the requirements in either Option 1 or Option 2 below during the Qualification Period:
Option 1
- Your Axos ONE® Checking account has received monthly qualifying direct deposits of at least $1,500 in total.
- The average daily balance of your Axos ONE® Checking account is at least $1,500.
Option 1
- Your Axos ONE® Checking account has received monthly qualifying direct deposits of at least $1,500 in total.
- The average daily balance of your Axos ONE® Checking account is at least $1,500.
Option 2
- Your Axos ONE® Checking account has received monthly qualifying deposits of at least $5,000 in total.
- The average daily balance of your Axos ONE® Checking account is at least $5,000.
If both of the requirements in either Option 1 or Option 2 above are met during the Qualification Period:
- The Axos ONE® Checking account will earn a promotional rate of 0.51% APY for the statement cycle in which the requirements are met.
- The Axos ONE® Savings account will earn a promotional rate of up to 4.31% APY for the statement cycle in which the requirements are met.
The Qualification Period begins on the first business day of the month and runs through the 25th of the month. If the 25th of the month is followed by a non-business day, the average daily balance will be calculated including the following non-business day(s). Any qualifying deposits or qualifying direct deposits received after the 25th of the month will count toward the next Qualification Period. The Qualification Period for new accounts will begin on the day the account is approved. New accounts opened on or after the 25th of the month will be eligible to earn the promotional APY starting in the following month.
A direct deposit is an electronic deposit of your paycheck or government benefits, such as Social Security, Disability, etc. International paychecks, international government benefits, other deposits (i.e., online banking transfers, ATM and mobile check deposits, etc.), or person-to-person payments are not considered a direct deposit.
Qualifying deposits only include deposits from the following eligible sources: (i) ACH transfers from external accounts, (ii) inbound wire transfers from external accounts, (iii) check deposits. Qualifying deposits do not include: (i) transfers internal to the bank (i.e., transfers between an account holder's Checking and/or Savings account), (ii) interest payments, (iii) promotional bonuses, (iv) credits, reversals, and refunds.
Both accounts must be in an open and active status on the 25th of the month and on the date the interest is paid to receive the promotional APY for that statement cycle. If either account closes during the Qualification Period, neither account will be eligible to earn the promotional APY for that statement cycle. Account transactions may take one or more business days from the transaction date to post to the account.
2. If you direct deposit a smaller amount: SoFi Checking and Savings (Member FDIC)
SoFi Checking and Savings (Member FDIC) customers who direct deposit any amount each month earn the standard rate of 3.60% annual percentage yield (APY) on savings. Plus, for a limited-time: Earn up to $300 and +0.70% Boost on Savings APY with direct deposit. Terms apply. That means you could get up to 4.30% APY for your first six months.
I personally use SoFi® for checking, savings, and investing. I earn a high APY and pay no monthly fees, and the app makes it easy to manage all my money in one place.
Click here to learn more and open a SoFi Checking and Savings (Member FDIC) account.
On Axos Bank's Secure Website.
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SoFi Checking and Savings
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- Competitive APY on both Savings and Checking
- No monthly account fee
- Welcome bonus up to $300 (direct deposit required)
- ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured (up to $3M with opt-in to SoFi Insured Deposit Program)
- Early access to direct deposits
- Tools to help you track savings goals
- Combo account only; no stand-alone savings or checking
- Maximum Savings APY requires direct deposit
- No branch access; online only
- Overdraft protection requires monthly direct deposit minimum
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, new customers earn a bonus of up to $300 with eligible direct deposit. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.
3. If you don't use direct deposit: Barclays Tiered Savings
The Barclays Tiered Savings account pays 3.85% APY on all deposits under $250,000 -- no minimum balance or direct deposit required.
Just keep in mind that Barclays does not offer a checking account, so transferring and withdrawing cash may take a few days. That's a small price to pay for such a high APY.
Read our full review of Barclays Tiered Savings and open an account today.
On Axos Bank's Secure Website.
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Barclays Tiered Savings
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- Competitive APY
- No monthly account fee
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured
- No minimum deposit to open an account
- Balance requirement for maximum APY
- No ATM access
- No wire transfers (inbound or outbound)
- No branch access; online only
Barclays Tiered Savings rewards savers with a tiered APY structure, offering higher rates as your balance grows. No monthly fees and no minimum balance to open mean it's accessible to everyone, while unlimited transfers and withdrawals let you manage your savings your way. And now, you can take advantage of a special offer $200 bonus on top of your savings growth when you open a new account and deposit $30,000 or more. Offer ends Dec. 31, 2025. Terms apply.
Switching bank accounts takes minutes
When I finally decided to ditch my old credit union, I was surprised by how fast and easy it was to switch bank accounts. It only took me a few minutes to open a new account and transfer my money out of the old one. It took another half-hour to change my direct deposits and automatic bill payments.
Thousands of dollars more for 30 minutes of work? I'll say yes to that every day and twice on Sunday.
If your savings account has a low APY, don't wait to start earning more easy money. Switch to a high-yield savings account ASAP.
Our Research Expert
James McClenathen is a full-time Managing Editor and Personal Finance Writer at Motley Fool Money, overseeing the production and quality of editorial content while also writing about credit cards, investing, and everyday money management. He has worked at The Motley Fool since 2012 and brings extensive experience as an editor, reporter, and finance expert. A graduate of the University of Michigan, James has spent more than a decade of his career helping readers make smarter financial decisions.