Here’s Why I Moved My Savings to an Online Bank

For over a decade, I’ve been banking with Chase. I have multiple accounts there — checking, savings, credit cards, mortgages — the whole relationship. And for most of that time, I assumed keeping all my savings in one place was smart.

Turns out, Chase was paying me 0.01% APY on my savings. On a $20,000 balance, 0.01% APY earns just $2 a year in interest. Not even enough for a cup of coffee.

So a few years ago, when interest rates started climbing and online banks began paying massive APYs, I finally paid attention and moved my cash. I’ve earned over $2,000 in interest since switching, and it’s been one of the easiest money wins of my life.

I earn 400x more interest (no joke)

Right now I keep my savings at an online bank where I earn 4.00% APY.

That’s 400x more interest than what I was earning in my old Chase savings account. It actually used to be even higher, but APYs have come down a little over the past year or so — that’s just how variable-rate savings accounts work.

Here’s what that APY gap looks like over the course of a year at different balances:

Data source: Author’s calculations.

Since moving my own cash pile (around $20K in emergency funds), I’ve earned over $2,000 in interest over the years. It cost me nothing to move and took maybe 10 minutes to set up.

Online banks can pay so much more because they don’t have physical branches to maintain — lower overhead means better rates for me and you.

Check out today’s top savings accounts paying the highest APYs.

No fees or minimums, and just as safe

Big banks like Chase make a lot of money on fees. Some will waive the monthly fee if you maintain a minimum balance or meet a direct deposit requirement, but keeping track of that is annoying.

What I love about modern online banks is that the whole business model is built around not charging fees. It’s truly refreshing to work with a bank that isn’t trying to nickel-and-dime you at every turn.

And as far as protection goes, most online banks carry the same FDIC insurance as big traditional banks. My online savings account is insured up to $250,000 — same as my old account at Chase.

It actually helps me save more

I still use Chase for my daily banking. My paycheck gets deposited there, I pay my bills from that account, and it works great for everyday spending.

But now that my savings live at a separate bank, I’ve found it naturally helps me save more. Out of sight, out of mind really does work.

When your savings money is lumped in with your spending money, it’s too easy to dip into for odd things. A little separation adds just enough space to protect my savings pile.

I have a recurring $250 monthly transfer set up from my checking account to savings. Since it happens on auto-pilot, that savings account just grows in the background without me having to do anything.

Your savings deserve better — here’s how to find a new account

I still love Chase for everyday banking. But keeping my savings there was costing me thousands. Moving took about 10 minutes and honestly changed how I think about where my cash lives.

If you’re ready to do the same, it’s easier than you’d think. Browse a few top-rated high-yield savings accounts, pick one that’s FDIC-insured with no monthly fees, and apply online. You’ll just need basic info — name, address, Social Security number. Once you’re in, link your existing checking account, set up a recurring transfer, and let it run.

The best online banks don’t just pay more in interest — they’re actually built to help your money grow. And after earning $2,000 doing basically nothing, I’d say that’s a pretty good reason to make the switch.