Here’s Why Americans Are Moving Their Savings Out of Big Banks This Summer

I had my traditional Wells Fargo savings account for over 15 years — but a few months ago, I finally made a switch (it was a long time coming). Now, I’m earning hundreds more in interest each year with a high-yield savings account, just for moving my money.

I’m not the only one, either. More and more Americans are ditching their old savings accounts this year — and for good reason.

Here’s how easy it is for you to do the same.

Big banks aren’t paying savers what they deserve

If you’re still keeping your savings at an old-school bank, you’re likely earning next to nothing on your cash.

The average savings account APY is just 0.38%, according to the Federal Reserve. At that rate, a reasonable $8,000 in savings would only earn you about $30 in interest per year.

That’s barely enough to cover a nice dinner — and not nearly enough to beat inflation.

Meanwhile, online banks are offering high-yield savings accounts (HYSAs) with APYs of 3.80% or higher, literally 10 times more than the average. That means that same $8,000 could earn you $300 or more annually.

And just like traditional savings accounts, HYSAs also let you access your funds anytime — making them the perfect place to grow your emergency fund and short-term savings.

Why high-yield savings accounts can pay more

Most high-yield savings accounts are offered by online-only banks. That means they have no physical branches — and therefore lower overhead costs — so they can pass those savings onto customers, offering higher interest rates and fewer fees.

Here’s what to look for in an HYSA:

• At least 3.80% APY
• No monthly fees
• No minimum balance
• FDIC insurance up to $250,000

Switching is fast and simple

You don’t have to be a finance whiz to make the switch. High-yield savings accounts are super easy to open online, and most applications take a half hour or less.

All you need to do is:

1. Pick an HYSA that fits your needs; find one with a high APY and no monthly fees.
2. Open your account online with basic personal info.
3. Link your old account and transfer your cash, then close your old account if it no longer serves a purpose.

Ready to upgrade your savings? Check out our list of the best high-yield savings accounts available now.

Join millions of Americans in making the move

Here’s the truth: With HYSAs on the rise, big banks’ best days are behind them — at least when it comes to earning interest.

Whether you’re building an emergency fund, saving up for a big purchase, or just want to earn more cash, a high-yield savings account is a much better place to keep your money — and it only takes minutes to switch.