🧐 Still earning less than 4% on your savings?

Hey there,

A new study from Bankrate just dropped, and the results are… a little frustrating.

It turns out that two-thirds of U.S. savers are still earning less than 4% on their savings accounts.

Yes, in 2025. With online banks offering rates of 4%, or even 5%, that are risk-free and FDIC-insured, most people are still sticking with low-yield accounts.

Here’s the breakdown:

• 17% of savers are earning less than 1%

• 22% earn somewhere between 1% and 2.99%

• Another 17%? They’re earning zero interest.

• And 11% don’t even know their rate 🤯

Meanwhile, the top high-yield savings accounts are paying 4% or more, with no fees or hoops to jump through.

So… why are people leaving money on the table?

According to the study:

• Many people are just used to their current bank.

• Others like having a local branch.

• And some are unsure about switching to an online bank.

Totally understandable, and I get it. But here’s the thing: if you have $10,000 in savings and you’re earning 0.5% instead of 4%, you’re missing out on $350 a year. 

That’s a weekend getaway, a month of groceries (two weeks for my family since my kids have endless stomachs), or part of your emergency fund, just gone.

It might be time to ask yourself: Is my money working hard enough?

If you’re unsure of your current APY, take a moment today to log in to your account and check.

If it’s under 4%, there’s a good chance you could be earning more with very little effort. You don’t have to close your existing account, just open a high-yield account and link the two. Easy.

Pro tip:
Most high-yield savings accounts are:

✅ FDIC-insured
✅ Fee-free
✅ Easy to open online in minutes

So what’s the bottom line on all this?

You worked hard for that money. Don’t let it sit idle. Give it a better home, and let compounding do its thing.

Until next time,

– Sean
Founder, One Smart Dollar
Publisher of The Banking Edge

P.S. If you want help finding a high-yield account, keep an eye out for an upcoming newsletter. I’ve got a roundup coming soon 👀