For the past decade, I’ve maintained a high-yield savings account at the same online bank. However, I realized that simply opening the account wasn’t enough to maximize my earnings. By actively monitoring my bank’s rate changes and strategically opening new accounts with better rates, I was able to earn thousands of dollars more in interest. It was a valuable lesson in the importance of staying informed and proactive when it comes to managing my finances.
Having a high savings rate has significantly benefited my financial well-being. It’s not just about earning more money, but also protecting against inflation and ensuring that my savings work harder for me. By being vigilant and taking advantage of better rates when they became available, I was able to make the most of my savings and maximize my earnings.
Why a high savings rate matters
I was initially frustrated with the low interest rate on my savings account at a traditional bank. After moving my savings to an online bank with a higher rate, I began to see the impact of earning more interest. It’s a common issue, as many Americans have savings accounts that barely earn any interest. A good savings rate not only helps you earn more money, but also protects your savings from the effects of inflation.
To make the most of a high-yield savings account, it’s important to stay informed about rate changes and account offerings. By actively seeking better rates and being willing to switch accounts when necessary, you can ensure that your savings are working as hard as possible for you.
Rate-chasing tips based on my experience
1. Choose a high-yield account based on several factors
After years of writing about personal finance, I decided to take my own advice and open a high-yield savings account. I made sure to choose an account with no monthly fees, no requirements for the savings rate, no foreign transaction fees on a debit card, and helpful customer support. A sign-up bonus was the cherry on top, and I ended up opening a Capital One 360 Savings account with a 0.75% APY. This decision significantly increased my interest earnings compared to my previous account.
2. Read the fine print on any bank promo
Keeping an eye on promotions and rate changes is essential for maximizing your savings. I took advantage of a promo that offered a higher rate on a money market account, but I made sure to read the fine print to understand the requirements. By meeting the minimum balance requirement, I was able to earn a higher rate and increase my interest earnings.
3. Stay aware of changes to your bank’s offerings
As my bank introduced new savings accounts and rate changes, I made sure to stay informed and take advantage of better rates when available. By being proactive and switching to accounts with higher rates, I was able to maximize my interest earnings and make the most of my savings. It’s important to stay vigilant and be willing to make changes to ensure that your money is working as hard as possible for you.
My vigilance paid off
By actively monitoring my savings accounts and taking advantage of better rates, I was able to significantly increase my interest earnings and make the most of my savings. It’s a reminder of the importance of staying informed and proactive when it comes to managing your finances to ensure that your money is working as hard as possible for you.
Regularly monitoring your interest rate and comparing it with market rates is crucial, even if you are dealing with your bank. This helps ensure that you are receiving the expected rate of return on your savings.
In a recent legal case, the Consumer Financial Protection Bureau filed a lawsuit against Capital One in January 2025 for allegedly misleading customers about the interest rate on their 360 Savings account. Despite claiming to offer a “high interest” account, Capital One maintained a rate of 0.30% from December 2020 to at least August 2024. The CFPB found that the 360 Performance Savings option actually provided a rate that was more than 14 times higher than the 360 Savings rate. Although the lawsuit was dropped by the CFPB under new leadership, a class action lawsuit against Capital One is still ongoing.
Opting for a high-yield savings account has been a smart financial decision for many individuals in recent years. However, it is important not to become complacent with your rate and to regularly check and compare it to ensure you are maximizing your savings potential.