Switch Accounts for a Better Yield?

If your current account has a reliable history of strong yields, it might be worth sticking around.

Women sitting at a table with an open laptop reviewing bills
(Image credit: Getty Images)

Interest rates on savings accounts often fluctuate, making the hunt for the highest yield on your savings stash a cat-and-mouse game. If your account’s yield falls, is it worth switching to a different account offering a better rate? After all, the new account’s yield could drop at any time, too.

Doing some math can help you make the call. Say you have $10,000 in a savings account with a rate that recently dropped to 0.4%. Over the next year, you’ll earn about $40 in interest if the rate remains steady. If you move the money to an account yielding 0.7% — one of the top rates available recently — you’ll earn about $70 in interest over a year, or $30 more, if the yield stays the same (but that’s a big if).

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Lisa Gerstner
Editor, Kiplinger Personal Finance magazine

Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.