You could lose up to $1,855 a year by keeping your money in the wrong bank

Americans who keep their savings in traditional bank accounts could be missing out on hundreds or even thousands of dollars in annual interest, according to a new analysis.

While the national average annual percentage yield (APY) on savings accounts stands at just 0.38%, several high-yield savings accounts currently offer guaranteed returns between 4% and 5% APY, according to data from the Federal Deposit Insurance Corporation (FDIC), Forbes Advisor and YourBestSavings.com.

The analysis estimates that someone with $50,000 in savings could earn up to $1,855 more per year by switching from an average traditional savings account to one offering a higher yield.

Experts say the gap has widened as the Federal Reserve has maintained elevated interest rates in recent months. However, they caution that these higher returns may not last if the Fed begins lowering rates later this year or in early 2027.

The report notes that many Hispanic households continue to keep their savings in traditional banks because of familiarity, concerns about digital banking or lack of information, potentially missing out on higher returns.

According to the U.S. Bureau of Labor Statistics, inflation reached 3.5% annually in June 2026, meaning savings earning less than 1% annually continue to lose purchasing power.

Among the highest-yield savings accounts available as of July 7 were:

Varo Bank: Up to 5.00% APY on the first $5,000.
GO2bank: 4.50% APY on the first $5,000.
St. Mary’s Credit Union: 4.50% APY on balances up to $50,000.
Axos Bank: 4.21% APY, subject to eligibility requirements.
Forbright Bank: 4.15% APY with no minimum deposit.

Financial experts recommend verifying that a bank is insured by the FDIC, or by the National Credit Union Administration (NCUA) for credit unions, before opening an account. They also advise checking whether promotional rates apply only to certain balance limits and reviewing any monthly maintenance fees or account requirements.

Analysts say opening a high-yield savings account typically takes only a few minutes and could allow savers to lock in higher interest rates before they begin to decline.