Last year, I earned $798 in bank interest. Which is crazy — because for over a decade, I was used to making just $1 or $2 a year.
All I did was move my idle savings from a basic Chase account (where I was earning next to nothing) into a high-yield savings account (HYSA) paying over 4.00% APY. The switch took maybe 10 minutes.
Rates are still really high, so this year I’m on track to earn over $1,000 in interest. Here’s the full story, and how you might be able to boost your earnings too.
What is a high-yield savings account?
Honestly, I barely knew these existed until a few years ago.
A high-yield savings account works just like a regular savings account — but it pays waaay more interest. We’re talking 4.00% APY or higher, compared to 0.01% from the big banks.
They’re designed for storing cash that you rarely touch. Money for things like short-term savings, emergency funds, or any temporary cash you’re sitting on. The longer your money sits, the more interest builds up and compounds.
As for safety and security, most of the top HYSAs are offered by banks with FDIC insurance (or NCUA insurance for credit unions). That means the money inside an HYSA is protected up to $250,000 per person — just like it would be in a Chase, Bank of America, or Wells Fargo account.
How much can you earn?
My old Chase account paid 0.01% interest. That’s the standard rate at places like Chase, Bank of America, and Wells Fargo for their basic savings accounts right now.
But now I earn 4.00% APY with an online high-yield savings account. I use a platform called Betterment, but there are a handful of other top online HYSAs offering 4.00%+ APYs right now.
That’s a 400x difference. So every $1 I used to earn at Chase… I now earn $400 in my HYSA.
Here’s a quick look at how this plays out over a year with different balances:
|
Balance |
Big Bank (0.01% APY) |
HYSA (4.00% APY) |
|---|---|---|
|
$500 |
$0.05 |
$20.00 |
|
$1,000 |
$0.10 |
$40.00 |
|
$5,000 |
$0.50 |
$200.00 |
|
$20,000 |
$2.00 |
$800.00 |
|
$50,000 |
$5.00 |
$2,000.00 |
Data source: Author’s calculations.
Even with smaller balances, the interest is noticeable. But the more cash you’re sitting on, the more you’ll earn throughout the year.
I treat my interest like a little bonus each month. Most of it just stays in the account and keeps compounding, but every now and then I’ll skim a bit off the top for something fun.
One bank that’s turning heads in 2025 is LendingClub. Read our full LendingClub LevelUp Savings review here, and learn about the top-tier APY you can earn by setting up direct deposit, plus automatic savings features that make building your balance easier.
How I picked my HYSA
Opening a new bank account doesn’t mean you have to completely ditch your old bank.
I still use my Chase checking account for everyday stuff like paychecks, paying credit card bills, transfers, etc. It’s just my bigger saving pile that lives over in my HYSA, so it can earn maximum interest.
Security was my top concern. I wanted a bank with a good reputation and reviews. Here’s everything I researched.
- FDIC or NCUA insurance. Non-negotiable. I want my money protected even if the bank fails.
- No monthly fees or minimums. Fees are a pet peeve of mine, so I don’t want to pay any.
- A high APY. Some of the best HYSAs are paying around 4.00% still as of August 2025.
- Easy (and unlimited) money transfers. I like banks that have easy-to-use mobile apps, and let you transfer funds in and out with just a few taps.
Most HYSAs don’t come with a debit card. So the main way to send or receive money is via ACH transfer. My banks are connected on the back-end with each other, so I can initiate money transfers via either bank’s mobile app, and it usually takes one to two days.
One small move, big payoff
Moving my savings to a high-yield account has earned me thousands in interest over the past couple years. Honestly, I wish I’d done it sooner.
There aren’t many guarantees in personal finance. But this is one of them.
Ready to find your new favorite bank? Check out our top-rated high-yield savings accounts here.
Great Job newsfeedback@fool.com (Joel O’Leary) & the Team @ The Motley Fool Source link for sharing this story.
