This Banking Mistake Cost Me Over $2,000

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

[[{“value”:”For 12 years, I thought I was being responsible by putting spare cash in a savings account at my local credit union. I never touched the money except to pay for an emergency, like a car repair. That’s what you’re supposed to do, right?Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Yet I was costing myself thousands without realizing it.When I learned about high-yield savings accounts, I decided to check out my own account’s APY to see how it compared. I was earning just 0.01% (that’s not a typo). My money earned almost nothing in interest for more than a decade.Turns out, I could have earned over $2,000 in that time.How much more could you be earning?Today, some of the best high-yield savings accounts (HYSAs) offer 3.60% APY or more — that’s at least 9x the national average. They’re also federally insured and just as safe as a traditional savings account.Let’s say you have $10,000 in savings. Here’s how much interest you’d earn over the next 12 years depending on your APY:APYInterest EarnedBalance0.41% (national average)$503$10,5034.00%$6,010$16,010Data source: Author’s calculations.Wouldn’t you like to be thousands of dollars richer for basically no work at all?Keep in mind that rates weren’t always this high, and they may drop before long. Until a few years ago, APYs above 1.00% were hard to come by. (I feel slightly better knowing I didn’t miss out on a 4.00% APY for 12 whole years.)That’s all the more reason to open an HYSA and take advantage of today’s high rates now.Switching bank accounts is easier than you thinkI used to think switching banks would be a hassle. I pictured paperwork and never-ending hold music.In reality, I opened a new account and transferred my savings in under 10 minutes. I even opened a checking account at the same bank while I was at it.Opening a high-yield savings account today takes just a few minutes on your phone or computer. Making transfers is quick and easy, too (though it may take a few days for your money to reach your new account).And don’t worry — your money is still safe. Most HYSAs (including all the accounts we recommend) are offered by FDIC-insured banks, meaning your deposits are protected up to $250,000.Don’t wait to start earning more interestYou can lose money without making a risky investment. I lost money by leaving it in a savings account that paid almost no interest, while the price of everything went up and up.Don’t make my mistake. Take a few minutes to open an HYSA today.If you want recommendations, we’ve rounded up the best HYSAs available today. They have no monthly fees and some of the highest rates you’ll find anywhere. Click here to see our list of the best high-yield savings accounts and open a new account today.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

For 12 years, I thought I was being responsible by putting spare cash in a savings account at my local credit union. I never touched the money except to pay for an emergency, like a car repair. That’s what you’re supposed to do, right?

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Yet I was costing myself thousands without realizing it.

When I learned about high-yield savings accounts, I decided to check out my own account’s APY to see how it compared. I was earning just 0.01% (that’s not a typo). My money earned almost nothing in interest for more than a decade.

Turns out, I could have earned over $2,000 in that time.

How much more could you be earning?

Today, some of the best high-yield savings accounts (HYSAs) offer 3.60% APY or more — that’s at least 9x the national average. They’re also federally insured and just as safe as a traditional savings account.

Let’s say you have $10,000 in savings. Here’s how much interest you’d earn over the next 12 years depending on your APY:

Wouldn’t you like to be thousands of dollars richer for basically no work at all?

Keep in mind that rates weren’t always this high, and they may drop before long. Until a few years ago, APYs above 1.00% were hard to come by. (I feel slightly better knowing I didn’t miss out on a 4.00% APY for 12 whole years.)

That’s all the more reason to open an HYSA and take advantage of today’s high rates now.

Switching bank accounts is easier than you think

I used to think switching banks would be a hassle. I pictured paperwork and never-ending hold music.

In reality, I opened a new account and transferred my savings in under 10 minutes. I even opened a checking account at the same bank while I was at it.

Opening a high-yield savings account today takes just a few minutes on your phone or computer. Making transfers is quick and easy, too (though it may take a few days for your money to reach your new account).

And don’t worry — your money is still safe. Most HYSAs (including all the accounts we recommend) are offered by FDIC-insured banks, meaning your deposits are protected up to $250,000.

Don’t wait to start earning more interest

You can lose money without making a risky investment. I lost money by leaving it in a savings account that paid almost no interest, while the price of everything went up and up.

Don’t make my mistake. Take a few minutes to open an HYSA today.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More