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Only about 1 in 5 Americans use a high-yield savings account (HYSA), according to a recent CNBC study. And that’s a shame, because that means the other 4 in 5 Americans are missing out on easy money.
I’ve been writing about personal finance for years, and here’s something I’ll never understand: Why leave free money on the table?! If you’re going to keep cash in the bank, you might as well earn something worthwhile on it.
Here’s exactly how much you could make with $10,000 sitting in a top HYSA today.
Some of the top HYSAs are paying around 4.00% annual percentage yield (APY) right now.
At 4.00% APY, here’s how much interest $10,000 would earn in interest:
Compare that to a traditional bank paying 0.01% APY, where $10,000 would make just $1 in an entire year. The gap is staggering.
I always tell people — If you were walking along and saw a $1 bill on the ground, would you pick it up? Of course you would. Because it’s “free money.”
Well, moving your cash pile into a high-yield savings account is kind of like picking up extra money every day (except there’s no bending down required — it just collects and grows in your account). It’s one of the easiest wins in personal finance.
Bigger interest checks are nice. But online banks have several other benefits that come with high-yield savings accounts:
In short, online banks give you all the safety of a traditional bank, but with more modern features and way better returns.
Our experts have rounded up and rated the best high-yield accounts — some offer rates above 4.00% APY right now. Compare the top accounts here and see how much more your savings could earn.
In my opinion, every single American should have a high-yield savings account.
Checking accounts are perfect for day-to-day banking (paying bills, payroll deposits, everyday needs, etc). But an HYSA is the perfect place to save for short-term or medium-term money goals.
Here are some examples of the money to keep inside:
Even if you don’t have much saved, it’s still worth opening an account. For example, $1,000 in a 4.00% APY HYSA earns about $40 in a year, versus just $0.10 at a traditional big bank.
If you’re one of the 4 in 5 Americans that don’t use a high-yield savings account, it’s time to rethink where your money sits.
You don’t need a huge amount to start — even a few hundred dollars can begin earning meaningful interest.
The point is, you deserve more than pennies on your savings.
Check out our list of the best high-yield savings accounts and start making your money work harder today.
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