Why People Stay in Terrible Savings Accounts Even When Rates Are High

Despite high interest rates available today, millions of Americans are still parking their cash in savings accounts earning next to nothing. According to the FDIC, the average savings account earns just 0.39% APY as of January 2026 -- while some top high-yield savings accounts (HYSAs) offer 4.00% or more.

That's a difference of more than 10x in earnings. Yet for some reason, many people leave their money sitting in low-rate accounts month after month.

I've been deep in the personal finance space for years, and I've seen this pattern up close. It's not just forgetfulness -- it's a mix of psychology, habit, and a few myths that hold people back.

1. They don't realize how much the math actually matters

On the surface, 0.39% versus 4.00% might not sound like a big deal. They are both tiny percentages, hard to translate into dollars.

But here's the real math:

If you have $10,000 in a traditional bank earning 0.39% APY, you'd earn just $39 per year in interest. But at 4.00%, that same $10K earns $400 per year.

That's a ~10x increase in earnings, just by moving your money to a different bank.

The opportunity cost is real. And the worst part is that many people don't even know what rate they're currently earning. If that's you, take 30 seconds today to check your account's APY. Then compare it to these top high-yield savings accounts paying top APYs.

2. Big banks feel familiar and safe

Large brick-and-mortar banks have built decades of trust and brand recognition. It's only natural that you feel safer banking with them -- even if you know full well that you're getting ripped off.

I've heard it all:

• "I've been with this bank since I was a kid."
• "It just feels safer."
• "All my accounts are linked together."

This is called the status quo bias -- and it can be expensive.

The truth is, most online banks have the same FDIC insurance and security standards as the big guys -- without the monthly fees, balance requirements, or clunky apps.

3. People think switching is a hassle (even though it's not)

These days, you can open and fund a bank account in under 10 minutes. Seriously, there's no branch visit or manual paperwork required, and you don't even have to close your old account if you don't want to.

Most online banks make it super easy: You open the new high-yield savings account, link your existing bank, and transfer the money over. That's it.

The whole process takes a few clicks, and your funds usually land within a couple business days. Once it's set up, you can automate transfers or just let your money chill and earn a better rate.

4. They're worried about quick access to cash

One of the biggest concerns I hear is: "What if I need my money back fast?"

Nobody wants to wait three to five business days to get their money if they need it in a pinch.

The good news is most banks have easy ways to access your cash if you need it quickly. Some offer instant transfers to checking and even reimburse ATM fees, so you can still grab cash when you need it. Some even give you a debit card connected directly to your savings account.

You can also keep your current checking account for everyday stuff, and just move your savings over to earn more.

A better home for your money

Here's the truth: You don't have to stay stuck in a savings account that's paying you pennies.

Opening a new account can be a 10-minute task and help you earn hundreds -- or thousands -- of dollars more in interest a year.

Compare the best high-yield savings accounts and earn up to 4.00% APY or more.