Banks Hope You Ignore This: Why $10K in Checking Could Cost You in April 2025

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The average checking account earns a measly 0.07% APY. That means if you have $10,000 sitting in your checking account, you’ll earn a whopping $7 in interest for the year. Ouch! That can’t even pay for a delicious craft Hazy IPA at my local brewery.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. High-yield savings accounts (HYSAs), on the other hand, can offer up to 4.40% APY. Interest earned in a year would be over $400… Which would buy me three to four delicious Hazy IPAs — per month, for a year!If you have $10,000 or more sitting in checking, it’s time to put that money to work in a better type of account.How much $10,000 could be earningSo, how much could that $10,000 that’s languishing in your checking account be earning you elsewhere?Here’s the math comparing interest rates across different account types, at various balances:Cash BalanceChecking (0.07% APY)HYSA (4.40% APY)$5,000$3.50$224$10,000$7.00$448$20,000$14.00$897$50,000$35.00$2,242Data source: Author’s calculations.With a $10,000 account balance, you’re looking at a $441 difference in interest just for moving your money into an HYSA. No investing, no risk. Just smarter saving.Ready to earn 10 times the national average APY? Check out our list of the best high-yield savings accounts and open a new account today.Why most people keep too much in their checking accountsMost of us were taught that our checking account is the default place for our money. It’s where your paycheck lands. It’s what your debit card pulls from. It’s… easy.But that convenience leads people to continue to build up savings amounts way higher than they should.Traditional banks love this by the way. They make billions by keeping their customers’ cash sitting in low-interest accounts, and never encourage people to move it.In reality, there’s no need to keep more than one or two weeks’ worth of expenses in a checking account. As long as you’ve got enough to cover immediate bills, any excess cash is probably too much.What to look for in a high-yield savings accountIf you’re ready to put your cash pile to work, here are some things to consider when evaluating high-yield savings accounts:Competitive APY: Look for accounts offering 3.60% APY or higher. Rates change often, so it’s worth checking every few months.No monthly fees: You shouldn’t have to pay to save. Plenty of online banks offer free accounts with no minimums or maintenance fees.FDIC insurance: Make sure your money is protected and you’re working with a reputable bank.Easy transfers: You’ll want quick access to your cash should you need it to cover large bills or if an emergency pops up. Typical transfer times should be one to three business days.A great mobile app: This makes it easy to quickly log in and manage your money.Our editorial team has spent hundreds of hours researching, reviewing, and testing the best savings accounts. Check out our best high yield savings accounts for April 2025.Give every dollar a jobChecking accounts are perfect for daily use. Like for paying bills, buying groceries, and getting your paycheck deposited. But they’re not built for growth.Every extra dollar you have sitting idle, move it somewhere it can work harder for you. A high-yield savings account gives those dollars a job, while also keeping them accessible in case you need the money in a pinch.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”:”

The average checking account earns a measly 0.07% APY. That means if you have $10,000 sitting in your checking account, you’ll earn a whopping $7 in interest for the year. Ouch! That can’t even pay for a delicious craft Hazy IPA at my local brewery.

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.

High-yield savings accounts (HYSAs), on the other hand, can offer up to 4.40% APY. Interest earned in a year would be over $400… Which would buy me three to four delicious Hazy IPAs — per month, for a year!

If you have $10,000 or more sitting in checking, it’s time to put that money to work in a better type of account.

How much $10,000 could be earning

So, how much could that $10,000 that’s languishing in your checking account be earning you elsewhere?

Here’s the math comparing interest rates across different account types, at various balances:

With a $10,000 account balance, you’re looking at a $441 difference in interest just for moving your money into an HYSA. No investing, no risk. Just smarter saving.

Why most people keep too much in their checking accounts

Most of us were taught that our checking account is the default place for our money. It’s where your paycheck lands. It’s what your debit card pulls from. It’s… easy.

But that convenience leads people to continue to build up savings amounts way higher than they should.

Traditional banks love this by the way. They make billions by keeping their customers’ cash sitting in low-interest accounts, and never encourage people to move it.

In reality, there’s no need to keep more than one or two weeks’ worth of expenses in a checking account. As long as you’ve got enough to cover immediate bills, any excess cash is probably too much.

What to look for in a high-yield savings account

If you’re ready to put your cash pile to work, here are some things to consider when evaluating high-yield savings accounts:

1. Competitive APY: Look for accounts offering 3.60% APY or higher. Rates change often, so it’s worth checking every few months.
2. No monthly fees: You shouldn’t have to pay to save. Plenty of online banks offer free accounts with no minimums or maintenance fees.
3. FDIC insurance: Make sure your money is protected and you’re working with a reputable bank.
4. Easy transfers: You’ll want quick access to your cash should you need it to cover large bills or if an emergency pops up. Typical transfer times should be one to three business days.
5. A great mobile app: This makes it easy to quickly log in and manage your money.

Our editorial team has spent hundreds of hours researching, reviewing, and testing the best savings accounts. Check out our best high yield savings accounts for April 2025.

Give every dollar a job

Checking accounts are perfect for daily use. Like for paying bills, buying groceries, and getting your paycheck deposited. But they’re not built for growth.

Every extra dollar you have sitting idle, move it somewhere it can work harder for you. A high-yield savings account gives those dollars a job, while also keeping them accessible in case you need the money in a pinch.

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.

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