3 Reasons You Haven’t Moved Your Money to an Account With Better Rates (When You Should!)

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Opening a new bank account could maximize your earning potential. 

Where you keep your cash matters. Instead of keeping all your money in a checking account, it’s a good idea to keep some of it in a savings account that earns interest. Many people don’t compare interest rates when opening a savings account and continue to keep their money in an existing bank account, despite being able to earn more interest elsewhere. Here are a few reasons why you might be continuing to put off moving your money to a better bank account.

1. You think it’ll take too much effort to open a new account

Many consumers keep their money in their existing bank account because it’s easy. You may feel it would take too much effort to switch banks or open a new bank account. The good news is it’s relatively easy to open a bank account. While you’ll need to take a few moments out of your day to do it, it can be well worth it. Moving your savings to an account that offers higher interest is an excellent way to boost your bank account balance.

2. You want to avoid bank fees

Many banks charge bank fees, but you can avoid them. If you’re keeping your money in a bank account that doesn’t charge fees, you may be afraid to open a new one because of potential fees. Luckily, many banks offer free savings accounts or provide ways for consumers to avoid being charged monthly account maintenance fees. As you research bank account options, look for free accounts to avoid wasting your hard-earned money.

3. You’re already earning some interest

If you already have a savings account, you may think that you’re good to go. Sadly, not all savings accounts offer the same annual percentage yields (APYs). Just because you’re earning some interest with your existing account doesn’t mean you’re earning as much as possible. It pays to compare rates offered through different bank accounts. Switching to a high-yield savings account could earn you more.

What to look for in a new savings account

Have we convinced you to move some of your extra cash to an account with a better rate?

Find out what you should look for in a new savings account as you explore account options:

Compare APY rates: You can maximize your earning potential by opening a bank account with a higher APY.Review initial deposit minimums: Check to see if there are initial deposit requirements. Many banks have low or no minimum deposit requirements, but that’s not always the case.Don’t ignore fees: Review all account fees, including monthly maintenance fees, before opening a new account, so you’re not hit with surprise charges.

Maximize the interest that you earn

If you’re already keeping extra money in a savings account, that’s fantastic. But make sure that you’re keeping your cash in a bank account with a competitive rate, as you could boost your earning potential by opening a new savings account with a higher APY. Check out our list of the best high-yield savings accounts to learn more.

These savings accounts are FDIC insured and could earn you 13x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 13x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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