Only 18% of Americans use a high-yield savings account — and they reap hundreds more in interest. Here’s how you can too Clay Halton Tue, October 13, 2026 at 7:40 AM EDT 9 min read GC=F +0.41% Photo by StockPhotoDirectors / Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
If you're holding $20,000 in cash, where you keep it could determine whether you earn a few dozen dollars or hundreds of dollars per year.
Nearly 57% of U.S. adults said they leave excess cash in a traditional or regular savings account, according to a 2025 survey by CNBC Select and Dynata (1). Only 18% said they use a high-yield savings account (HYSA) to hold such cash.
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That means many savers could be leaving money on the table for this one big reason: interest.
The difference between what you can earn in interest from a regular savings account and a HYSA can be substantial — and moving your money doesn't necessarily require taking on the risks that come with investing it.
Here's how much $20,000 could earn in a regular savings account versus a high-yield account, plus some other ways to make more of the cash you've worked hard to save.
The national average savings account rate was just 0.37% as of September 2026, according to the Federal Deposit Insurance Corporation (FDIC)'s latest numbers (2). At that rate, $20,000 would earn only about $74 over the course of a year.
Meanwhile, inflation was running at 3.4% annually in August 2026 (3). That means money earning the national average savings rate isn't keeping pace with rising prices.
By comparison, some of the best HYSAs currently offer annual percentage yields (APYs) up to 5%, according to Experian, while the national average HYSA rate was around 1.62% as of October (4).
At a 4% APY, for example, a $20,000 balance could earn about $800 over a year — more than 10 times what the same amount would earn at the current national average savings rate.
There are structural reasons for the massive gap between conventional savings accounts and high-yield savings accounts. The lowest rates are typically offered by large, well-established banks that have plenty of customer deposits, limited competition and higher overhead costs from operating physical branches and ATMs.
Online banks and financial technology companies are often on the opposite end of the spectrum. Technology and online portals can allow these firms to keep overhead costs lower, while competition for deposits can push them to offer more attractive yields.
Over time, that difference can add up to hundreds or even thousands of dollars simply based on where your money sits.
The good news is that there are several relatively straightforward ways to make your savings work harder.
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If you've got an emergency fund or money for short-term expenses sitting in a traditional savings account, a high-yield option could allow you to earn more interest without giving up access to your cash.
You can start by comparing high-yield savings accounts across banks and online platforms. While the advertised rate is important, you could also check for minimum balance requirements, monthly fees and whether deposits are eligible for FDIC insurance.
A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base rate APY of 3.55% through program banks. With a new client boost and direct deposit incentive, referred clients can earn up to a 4.55% APY.
That's 10 times the national deposit savings rate, according to the FDIC's September report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8 million FDIC Insurance eligibility through program banks.
For cash you may need unexpectedly, maintaining that liquidity can be important. But what about savings you know you won't need right away?
If you want to search around for the best rate possible, you can also check out the Moneywise list of the Best High-Yield Savings Accounts of 2026 and find an offer that fits with your savings goal.
Once you've chosen an account, all you have to do is sign up and link your existing bank account. From there, transferring your cash is usually quick and easy. That's all it takes to start earning a higher return.
High-yield savings accounts typically have variable rates, meaning the amount you earn can change over time. If you have cash you don't expect to need for a set period, a certificate of deposit (CD) offers another option.
With a CD, you generally agree to leave your money deposited for a specific term in exchange for a fixed interest rate. The tradeoff is that withdrawing your money before the CD matures can result in an early withdrawal penalty.
That makes CDs better suited to money you can afford to leave untouched rather than cash you might need for an emergency.
For those seeking predictable, reliable growth, a platform like CD Valet can help you find higher-yield options that work for you, whether you're saving for something soon or building a cushion for the long haul.
CD Valet tracks over 40,000 verified rates from FDIC-insured banks and NCUA-insured credit unions nationwide. Unlike other websites, they show every publicly available rate, ensuring you have a comprehensive view of the market.
What's more, their CD rates are updated continuously, so you can shop, compare and open CDs with ease.
Whether a HYSA or CD makes more sense depends largely on when you expect to need the money. But there's another question worth asking: Does all of your extra cash need to remain in savings at all?
Keeping an emergency fund and money for upcoming expenses readily accessible can provide an important financial cushion. But after you've set aside enough cash for those needs, you may decide that some of your additional money is more suited to longer-term goals.
That's where investing can come into the picture. Unlike money held in an FDIC-insured deposit account, investments can lose value, so it's always a good idea to avoid keeping money you may need soon exposed to market risk. But for money with a longer time horizon, investing can offer greater growth potential.
You don't necessarily need thousands of dollars to start.
With Acorns, for example, you can begin investing with as little as $5.
How it works is simple: Just sign up and link your debit or credit cards. That way, every time you buy something, Acorns rounds up the total to the nearest dollar. This turns a morning coffee for $3.25 into a 75-cent investment in your future.
From here, that money goes into a diversified portfolio of ETFs that you can tailor to your risk tolerance. Along with big names like the Vanguard S&P 500 ETF, Acorns also sets you up to invest in specific sectors of the economy through custom portfolios. This includes areas like heavy industry, energy, consumer staples and utilities.
Then, once you're comfortable with your round-ups, you can supercharge your savings with recurring monthly deposits into your favorite funds. And if you sign up today with a $5 recurring deposit, Acorns will add a $20 bonus to help you begin your investment journey.
If you're thinking beyond short-term savings and looking for ways to make the money you've accumulated support you in retirement, one option you may want to consider is an income annuity through Ethos, which can help you convert your savings into predictable income.
In exchange for a lump sum, you can get guaranteed income for a set period of time, backed by the issuing insurer's claims-paying ability. This guarantee requires annuitizing your funds and is subject to the specific contract's terms, including any applicable surrender charges.
You can lock in predictable income you can count on every month and customize your payout schedule to fit your budget. If you need the money now, you can turn a lump sum into income that starts right away.
An income annuity can also help you diversify your retirement income strategy and provide another source of income alongside Social Security, pensions and other savings, with lifetime guaranteed income for those 59 and older, backed by the issuing insurer's claims-paying ability and subject to annuitization, rider elections and contract terms including surrender charges.
If you're considering an income annuity, book a free consultation with a licensed Ethos insurance agent to explore your options. No purchase is required.
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CNBC Select (1); Federal Deposit Insurance Corporation (2); U.S. Bureau of Labor Statistics (3); Experian (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
