Right now, the average savings account pays just 0.38% APY. The average checking account is even lower, at 0.07% APY. That’s less than a dollar a year in interest on a $200 balance.
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But some of today’s top banks are offering 4.00% APY or more for high-yield accounts. I’m using one personally and earned $798 in interest last year alone. Oh yeah, and my bank has no fees, account minimums, or the clunky tech of old-school institutions.
If you’ve been with the same bank for two decades, you’re probably leaving money (and modern features) on the table. Here’s what you could gain by switching.
Earn up to 10x more interest
The biggest reason to ditch your outdated bank account is higher interest. Way higher.
Traditional banks are notoriously stingy when it comes to paying interest. Meanwhile, modern online banks are fighting for your business by offering high-yield savings accounts (HYSA) with rates of 4.00% APY or more.
This can mean earning a LOT more money on your savings. Here’s the difference interest can make with a $10,000 balance over the course of a year:
|
Account Type |
APY |
Interest Earned |
|---|---|---|
|
Checking account |
0.07% |
$7 |
|
Savings account |
0.38% |
$38 |
|
HYSA |
4.00% |
$400 |
Data source: Author’s calculations.
It’s the same money. Just parked in a better place. And earning over 10X the national average savings rate.
And before you ask — yes, online banks are just as secure as traditional banks. They’re FDIC insured with protection up to $250,000 per depositor.
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By the way, you don’t need to completely switch everything to a new bank. Personally, I still keep my everyday checking with a big bank (Chase). But all my cash reserves are over at an online HYSA with a top rate.
Goodbye maintenance and junk fees
On average, top U.S. banks charge $13.95 per month in checking account fees, according to a February 2025 MoneyRates report.
That’s over $165 a year, just for the privilege of having an account. No thanks!
Most fintech banks are built differently. They pride themselves on charging no fees and having no account minimums. Particularly for online banks… Their lean physical footprint and modern applications means they have less overhead to cover.
Here are a few things you can look forward to with many online fintech banks.
-
$0 monthly maintenance fees
-
$0 overdraft fees
-
No minimum balance requirements
-
Free ATM access or fee reimbursements
Some even refund ATM charges from other banks — which means you can access your cash without hunting for the “right” ATM.
In other words, you keep more of your own money. And that’s the whole point, right?
Enjoy faster apps and smarter tools
To their credit, I will say that big bank mobile apps are starting to get less “clunky.” They handle the banking basics just fine, like mobile deposits and money transfers.
But fintech banks take it even further. Built for the app generation, they typically come with faster interfaces, user friendly designs, real-time alerts, and slicker user experiences overall. It’s modern banking that actually feels modern.
It’s time to switch (or at least explore alternatives)
You don’t have to cut ties with your old bank completely. I didn’t. I use a hybrid setup, with a couple accounts at a big-name bank for convenience, and a few higher-yield accounts at online banks to make the most of my cash savings.
Even just shifting part of your cash to a better account can make a big difference. So don’t settle. Start saving more today with a high-yield, online bank that pays YOU for being a customer.
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