Have you ever thought about sticking with the same traditional savings account just because it felt easier than switching? That convenience could cost you hundreds in compound interest that you could otherwise be earning with a high-yield savings account (HYSA).
According to a recent Forbes Insights and Synchrony Bank survey, only 6% of consumers feel their savings are fully optimized, while 63% believe they may be missing out on potential earnings by not seeking higher-yield accounts. With the national average savings rate at 0.40% annual percentage yield (APY), and some traditional accounts offering as little as 0.01%, the difference adds up fast.
By contrast, Synchrony Bank’s High Yield Savings account earns 3.80% APY1 and keeps things simple with no minimum balance requirement and no monthly fees. For savers who value stability and steady growth, switching to a HYSA can be an effective way to make your money work harder.
The Real Cost of a Low-Yield Account
Keeping your savings in a low-interest account might feel convenient, but over time, you could be missing out on what your money could be earning elsewhere.
Here’s an example of how much $30,000 could earn you in a year with a high-yield savings account or traditional savings account, using the national average as a benchmark:
Potential earnings are calculated using daily compounding and don’t account for any ongoing contributions.
By keeping your money in a HYSA, that’s over $1,000 more in just one year—money that could boost your emergency fund, reduce debt or fund your next getaway. Stretch that to five years, and the gap widens to more than $6,000.
The difference is subtle at first, often just a few dollars each month, but it compounds over time. As months turn into years, those missed earnings grow into a meaningful windfall. And while the Federal Reserve’s first rate cut of 2025 suggests we may be entering a lower-rate environment, HYSAs like Synchrony Bank’s account continue to stand out for offering consistently competitive returns when compared to traditional savings options earning rates as low as 0.01% APY.
How To Make the Switch
Transitioning to a HYSA is simple. You don’t need to move your checking account or completely overhaul your financial setup. To make the switch, follow these straightforward steps:
- Open a high-yield savings account, which can typically be done online in minutes.
- Link it to your checking account, so you can transfer funds without hassle. Synchrony Bank, for instance, allows free electronic transfers to and from external accounts.
- Start small with a test transfer in both directions to confirm speed and access before moving a larger balance.
- Automate your savings with recurring transfers to help your balance grow steadily in the background.
Think of the switch as a focused upgrade, not a full migration. Within just a few minutes, you can position your savings to earn more without added steps or complexity.
Find a HYSA That Works for You
Not all HYSAs are created equal. Some banks still use tiered interest structures, require a minimum balance or promote teaser rates that drop after a few months. Others might tack on monthly service fees or inactivity penalties that quietly eat into your returns.
When comparing HYSAs, look for banks that are transparent about how interest is calculated. Online banks are worth considering since they often offer strong rates and low or no fees, thanks to having fewer overhead costs than traditional brick-and-mortar banks. And if possible, prioritize an account that compounds interest daily and doesn’t require a minimum balance to earn the best rate.
For example, Synchrony Bank’s HYSA offers a 3.80% APY1 for all customers, regardless of balance, with no monthly fees or hidden interest rate conditions. Interest compounds daily and is credited monthly, and you can transfer funds between your Synchrony Bank High Yield Savings account, money market accounts and external accounts.
Before opening a HYSA with any institution, take a few minutes to read the fine print and look beyond the headline APY for things like account minimums, tiered rates and hidden service fees. The best HYSA is the one that fits your savings goals and continues rewarding you long after you’ve opened it.
Keep Your Savings Accessible for the Unexpected
A healthy savings strategy balances growth with accessibility. While your savings should be earning a strong return, they should also be available when the unexpected happens. Whether it’s an urgent car repair, a medical bill or last-minute travel, the ability to move money quickly can help you avoid unnecessary stress or delays.
Synchrony Bank’s HYSA is built with that flexibility in mind. You can link up to five external accounts, transfer funds via free ACH in as little as one to three business days and deposit checks on the go through its mobile app. The account also allows up to six free withdrawals a month, wire transfers for a fee and offers 24/7 online access. It even offers an optional ATM card, which is uncommon for savings accounts, with domestic ATM fee reimbursements up to $5 per statement cycle.
How To Use a HYSA as Part of a Broader Savings Strategy
A savings account is typically most effective when it’s tied to a specific goal, enabling you to stay consistent and focused on progress instead of reactive to small rate changes.
Labeling and organizing your savings by purpose makes it easier to track progress and avoid dipping into funds meant for something else. Synchrony Bank’s HYSA supports this kind of structure with the ability to open multiple accounts with personalized nicknames, a built-in savings goal calculator to estimate monthly contributions and automatic transfers to keep your momentum steady.
For broader financial planning, Synchrony Bank offers certificates of deposit and money market accounts. These can complement your HYSA by helping you set aside funds for medium- or long-term goals where liquidity isn’t as important.
Many savers find it useful to build a simple, three-tier structure:
- High-yield savings account: Store funds here for fast access and consistent growth.
- Laddered CDs: Set aside for mid-range goals within one to five years and lock in rates while maintaining predictable returns.
- Long-term investments: For funds you won’t need soon and want to keep focused on higher-yield growth.
This approach keeps your savings purposeful, organized and ready to support your goals at every stage.
Prioritize Security Without Sacrificing Simplicity
According to the Forbes Insights and Synchrony Bank survey, 72% of savers said account security is their top priority. After all, a strong APY doesn’t mean much if your funds aren’t secure. Make sure any savings account you choose is backed by FDIC insurance, which protects deposits up to $250,000 per depositor, per insured bank.
Keep in mind that this limit applies to the total amount you hold at a single financial institution across all accounts in your name. If your combined balances exceed that threshold, consider spreading funds across multiple banks to maintain full coverage.
Beyond federal insurance, a dependable savings account should safeguard your personal information as well. Synchrony Bank combines FDIC insurance2 with enhanced security measures like encryption, biometric login, fraud protection and multifactor authentication. It also provides customizable account alerts and live customer support seven days a week, helping you manage savings with confidence.
To keep your security up to date, you may want to conduct an annual “account checkup.” This can include taking a few minutes to review your contact information, confirming beneficiaries and verifying who has account access. Small steps like these can go a long way toward keeping your savings safe.
A Small Change That Makes a Big Difference
Good financial habits rarely start with dramatic changes. They begin with a small, clear choice that makes the rest of your money decisions easier. Moving your savings from a low-rate account to a high-yield account is one of those choices. Through the power of compound interest, your cash keeps working, even when you’re not paying attention.
Creating a strategy that balances growth, flexibility and peace of mind helps your money do more with less effort. Over time, that kind of consistency adds up. A small change today can quietly strengthen your savings for years to come.
Disclosures
1 Synchrony Bank High Yield Savings Account rates and details accurate as of 06/03/2025. APYs are subject to change at any time without notice. Offers apply to personal non-IRA accounts only. Charges for specific services may reduce earnings. For High-Yield Savings Accounts, the rate may change after the account is opened.
2 FDIC Insurance: Up to $250,000 per depositor, per insured bank, for each ownership category.