If you’re still using a savings account from a big-name brick-and-mortar bank (or worse, a checking account) earning as low as 0.01%, you could be earning just a fraction of $1 a year on every $1,000 you’ve got parked there. Ouch!
Now is the time to move all those cash reserves — emergency funds, retirement savings withdrawals, proceeds from downsizing — into a high-yield savings account (HYSA). You can begin earning over 4.00% APY, starting immediately.
That’s 400x more interest, with the same FDIC protection and easy access to your cash.
Traditional savings vs. high-yield savings
High-yield savings accounts are just like regular savings accounts, except they pay significantly more interest.
Our Picks for the Best High-Yield Savings Accounts of 2025
American Express® High Yield Savings Account Member FDIC. APY 3.70%
Rate info
Member FDIC.
|
3.70%
Rate info |
$0 |
|
CIT Platinum Savings Member FDIC. APY 4.10% APY for balances of $5,000 or more
Rate info Min. to earn $100 to open account, $5,000+ for max APY
Member FDIC.
|
4.10% APY for balances of $5,000 or more
Rate info |
$100 to open account, $5,000+ for max APY |
|
Barclays Tiered Savings Member FDIC. APY 4.10%
Rate info
Member FDIC.
|
4.10%
Rate info |
$0 |
How? Well, most traditional banks have massive overhead because of all the physical branches they operate. Meanwhile, many of the best HYSAs are online-only, which allows them to pass savings on to customers in the form of higher rates.
High-yield savings accounts still offer all the features and services you’d expect, like:
- FDIC insurance
- Low or no fees
- Easy transfers to and from other accounts
They also let you set up automatic deposits and withdrawals. This makes it easier for retirees to manage their monthly cashflow.
Interest you could be earning
Based on a 4.10% APY in April 2025, here’s what you could earn in one year depending on your savings balance:
|
Savings |
Interest Earned |
|---|---|
|
$10,000 |
$410 |
|
$25,000 |
$1,025 |
|
$50,000 |
$2,050 |
|
$100,000 |
$4,100 |
Data source: Author’s calculations.
Your money can be earning thousands more, just by switching accounts. And there’s no risk to your principal and no lock-in term required.
Why now is the time to switch
There’s never a bad time to earn more on your savings. But with the economy on shaky ground, 2025 might be one of the best times to take action. Here’s why:
- Rates are high — Many top HYSAs are paying over 4.00% APY, a rare opportunity that won’t last forever.
- It helps fight inflation — A stronger yield helps your savings keep up with (or outpace) rising costs.
- No fees, more growth — Most online HYSAs skip the fees, so more of your money stays in your account.
Switching to a top-rated high yield saving account is a low-risk move. But it has real upside.
What are you waiting for?
It’s important to preserve capital in retirement. But that doesn’t mean your cash can’t earn the most interest possible while it’s on hand.
With a high-yield savings account, your reserves grow on autopilot — and it’s all still available for use, whenever you need it.