Here’s Exactly How Much Money You’d Lose By Leaving Your Savings in Your Current Bank
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If you’re like most people, you’re probably not in the habit of turning away free money. However, you might be missing out on hundreds or even thousands of dollars in interest earnings simply by keeping your savings in your current bank.
There’s no time like the present to make the switch. Keep reading to learn how much your savings balance could grow just by moving it to a high-yield account.
How to Grow Your Savings 10 Times Faster
These days, standard savings accounts don’t typically boast high interest rates. Thankfully, the same can’t be said for high-yield savings accounts.
For example, the Milli Savings Account currently offers a Annual Percentage Yield, as of Feb. 29, 2024. In comparison, as of Feb. 20, 2024, the national average interest rate for savings accounts is just 0.46% APY, according to the FDIC.
Think of it this way — your money is essentially collecting dust in a standard savings account. You’ll earn a bit of interest, but nothing substantial.
On the other hand, a high-yield savings account puts your money to work. No matter what the balance, interest earnings will rack up quickly.
This can allow you to reach your savings goals faster, without actually putting more money in the bank.
Don’t Miss Out on Interest Earnings
If you’ve had your money in the same standard savings account for years, you might be hesitant to move it. This is understandable; it can feel like a hassle to open a new account, or you might feel a bit hesitant to leave a bank you like well enough — but this decision can be costly.
For example, say your savings account has a balance of $20,000. Take a look at how much interest you’d earn over the course of a few years with a Milli Savings Account, which offers APY*:
One year: $20,972.86
Three years: $23,062.85
Five years: $25,361.11
10 years: $32,159.29
20 years: $51,711.00
If you’re having trouble believing your eyes, those numbers are entirely accurate. Without contributing another penny to your savings account, you could continue to grow your balance at an impressive rate with a bank that pays the interest you deserve.
Now, compare these interest earnings with what you’d earn at a bank paying the national average of 0.46% APY:
One year: $20,092.21
Three years: $20,277.91
Five years: $20,465.33
10 years: $20,941.48
20 years: $21,927.28
Clearly, interest rates matter. Over a three-year period, you would lose out on $2,784.94 by staying at your current bank.
Even more telling, this number rises to $11,217.81 over 10 years and a staggering $29,783.72 over 20 years. That’s right, you could potentially triple your account balance in 20 years without making a single contribution to your high-yield savings account.
As you can see, the interest rate attached to your savings account can heavily impact your finances. While it might feel more convenient at the moment to keep your savings in your current bank, you’ll likely regret missing out on interest earnings down the road.
How to Open a Milli Account
If you’ve seen enough and are now ready to step up your interest earnings, consider opening a Milli Savings Account. You’ll pay no fees, have no account minimums and your money will be FDIC-insured up to $250,000.
To get started, you’ll need to download the Milli app, which is available for both iOS and Android. Milli won’t run a credit check on you, but you’ll need to provide your name, address, date of birth and Social Security Number for verification purposes.
When you’re ready to fund your new savings account, you’ll have several options. You can link an external bank account, set up direct deposit or opt for an ACH transfer from an external bank account.
Final Take
Interest rates on standard savings accounts aren’t great right now. If your current bank is offering close to the national average yield for savings accounts, it’s time to make a change — it could be worth thousands of dollars over time.
Get started here and start growing your savings more than 10 times faster.
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