I'm Willing to Give Up $125 in Interest for This Reason

There's a reason I'm actively choosing to earn less money on my savings.

For years on end, people with money in savings accounts were bemoaning the pitiful amount of interest they were getting on their money. But all of that has changed over the past few months.

These days, banks are paying a lot more interest on cash being kept in savings accounts, as well as CDs, on the heels of aggressive Federal Reserve rate hikes. And so at this point, consumers have a solid opportunity to generate a far more generous return on the money they're keeping in the bank.

Like many banks, my bank has upped its savings account interest rate over the past number of months. But despite that increase, my bank isn't the most competitive one out there interest rate wise.

In doing my research, I've found a number of online banks that will pay me a little more interest on my savings. In fact, moving over to one of those banks could result in an extra $125 in interest for me over the course of a year.

But while I'd certainly like to have an extra $125, I've actually made the decision to keep my money where it is. Here's why.

It's all about sticking to my comfort zone

The online bank I keep my savings at is one I've been with for a long time -- over a decade, in fact. I'm used to the platform and find it easy to use, and I have many bills set up to autopay from my checking account, which is linked to my savings account.

As such, switching banks sounds like a hassle to me. And for $125, I'm not convinced it's worth the effort.

Now I should also mention that I'm self-employed, and when I have to take time out of my day to handle administrative tasks (such as making a switch to a new bank), I can't work. And when I don't work, I don't get paid. So I can make the argument that I might cost myself that $125 in lost work and wages by spending time initiating a bank account switch instead of staying put.

But if I'm being honest, the main reason I'm keeping my money where it's currently at is because I'm comfortable with my existing bank and don't want to deal with a change. Not only am I familiar with my bank's platform and app, but I happen to think my bank offers great customer service. If I switch banks, I run the risk of losing out in that regard.

Staying put for now

If interest rates on savings accounts continue to rise in the next few months and I see that my bank starts to really lag behind others in that area, then I might consider making a switch. But for $125 in the course of a year, it's just not enough of a financial upside to push me to make a change. And so I'm keeping my money where it is today -- even if that means losing out on some extra money in the process.