Let me ask you something. Where is your savings sitting right now?

If the answer is a regular savings account at your local bank or credit union there is a very good chance your money is earning somewhere between 0.01% and 0.5% in annual interest. That means on a $5,000 savings balance you are earning approximately $25 to $50 per year. Maybe less.

Now let me tell you what we earned in 2025 by simply moving our savings to the right accounts.

Over $1,500 in interest just for keeping our savings in accounts that actually pay us back. That money did not require any extra hustle, any risk, or any financial expertise. It required one decision — moving our savings from a regular bank account to a High Yield Savings Account.

If your money is sitting in a traditional savings account right now that $1,500 is essentially money you are leaving on the table every single year. And today I am going to show you exactly how to stop doing that. 🤎

Same concept as a regular savings account — but your money actually grows while it sits there.

A High Yield Savings Account — commonly called an HYSA — is a savings account that pays a significantly higher interest rate than a traditional bank savings account. While the average traditional savings account pays around 0.01% to 0.46% APY, high yield savings accounts currently offer rates between 4.00% and 5.00% APY or higher depending on the institution.

APY stands for Annual Percentage Yield — the rate at which your money grows over a year including the effect of compounding interest. The higher the APY the more your money earns just by sitting in the account.

High yield savings accounts are typically offered by online banks rather than traditional brick and mortar institutions. Because online banks have lower overhead costs they are able to pass those savings directly to their customers in the form of higher interest rates. Your money is still FDIC insured up to $250,000 — meaning it is just as safe as any traditional bank account.

Every month your money sits in a low-interest account is a month you are paying an invisible cost.

Most people do not think of a low-interest savings account as costing them money — but that is exactly what it does. When inflation is running at 3% to 4% per year and your savings account is earning 0.01% your money is actually losing purchasing power every single month it sits there. Here is the real math:

Not all savings have the same job — and separate accounts for separate goals is one of the most powerful organizational moves you can make.

The best sinking fund account we have found — and the one we personally use and recommend.

Ally Bank is one of the most popular online banks in the country. Their Online Savings Account consistently offers a competitive APY and most importantly for sinking fund management they allow you to create multiple savings buckets within one account. That means one Ally account with separate labeled buckets for your car fund, holiday fund, home repair fund, vacation fund — each tracking separately so you always know exactly where you stand.

What Are Sinking Funds and Why Do You Need Them?

A sinking fund is money you set aside every month for a planned future expense. Instead of being blindsided by your car registration, holiday shopping, or annual insurance renewal — you save a little toward it every month so the money is already there when the bill arrives.

Where our most important savings lives — completely separate from everyday banking for maximum protection.

Marcus by Goldman Sachs is our second HYSA and the one where our most critical savings categories live — our emergency fund, our home savings goal, and our Pivot Fund. We chose to keep this money at a completely separate institution from our everyday banking for one very intentional reason: out of sight means out of temptation.

When your emergency fund is at the same bank as your checking account it is one impulsive click away from being spent on something that is not an emergency. At Marcus it takes a transfer and a day or two to access — which is exactly enough friction to make you think twice before touching it.

The savings account most people have never heard of — and the one that protected our family when we needed it most.

When my husband was laid off we did not have a name for what we needed. We had an emergency fund — but a job loss is not just a one-time emergency. It is an extended period of financial uncertainty that requires a different kind of cushion. So we created one and we called it our Pivot Fund.

A Pivot Fund is a dedicated savings account built specifically for life transitions — the moments when you need to shift directions, make a major change, or survive an extended period of reduced income. It is different from an emergency fund because it is not just for unexpected expenses. It is for the seasons of life where everything is changing at once and you need financial stability to make good decisions instead of desperate ones.

When my husband was laid off our Pivot Fund gave us something priceless — time. Time to evaluate our options without panic. Time to make intentional decisions about what came next. Time to avoid taking the first desperate opportunity that came along just because the bills needed to be paid.

That is what a Pivot Fund does. It buys you options when life removes them. And it earns interest in your Marcus account every single month while it waits. 🤎

This is one of the simplest financial upgrades you will ever make. Here is exactly how to do it.