57% of Americans keep savings in the wrong place — here’s what $20K can earn in 1 year in regular and high-yield account

57% of Americans keep savings in the wrong place — here’s what $20K can earn in 1 year in regular and high-yield account Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. If you’re holding $20,000 in cash, where you keep it could determine whether you earn a few dozen dollars or hundreds per year. Nearly 57% of U.S. adults said they leave excess cash in a traditional or regular savings account, according to a 2025 survey by CNBC Select and Dynata. Only 18% said they use a high-yield savings account (HYSA) to hold such cash (1). Top Picks - Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how - Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP - Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself In other words, the vast majority of savers across the country are leaving a lot of money on the table. That’s because the difference between what you can earn in interest from a regular savings account and a HYSA is staggering. That gap isn’t just a technical detail either. It’s money your savings could be earning in the background, with no extra effort required. Here’s how much $20,000 could earn in a regular savings account versus a high-yield one, and how you can easily make the switch to start earning more. The real cost of keeping cash in the wrong account As of March 16, 2026, the average savings account offers a paltry 0.39% yield, according to the FDIC, which means $20,000 would earn as little as $78 a year. Given that the annual inflation rate as of February is 2.4%, according to the Bureau of Labor Statistics (BLS), you’re actually losing purchasing power over the course of a year by leaving cash in a typical savings account. By comparison, some of the best HYSAs can offer annual interest rates of 4% or more, according to Experian, with an average rate around 1.64% (2). On a $20,000 deposit, that could mean earning $800 or more annually, while also outpacing inflation. There are structural reasons for this massive gap between conventional savings accounts and high-yield savings accounts. The lowest rates are often offered by large, well-established banks that have plenty of customer deposits, limited competition and higher overhead costs to operate physical branches and ATMs (2). Emerging fintech startups, or so-called “neo-banks,” are on the opposite end of the spectrum. Technology and online portals allow these firms to keep overhead costs lower, while the pressure to compete with major banks pushes them to offer better yields (2). Over time, that difference can add up to thousands of dollars simply based on where your money sits. The good news: switching from a low-yield account to a high-yield account is relatively easy. Read More: I’m almost 50 years old and don’t have retirement savings. Is it too late to catch up? Read More: Non-millionaires can now invest in this $1B private real estate fund starting at just $10 How to make the switch If you’ve got some excess cash or an emergency fund sitting in a traditional savings account, switching to a higher-yield option can take just a few minutes. Start by comparing high-yield savings accounts across banks and online platforms. While the advertised rate is important, also check for minimum balance requirements, monthly fees and whether the account is FDIC-insured to protect your deposits. If you’ve got some excess cash or an emergency fund sitting in a traditional savings account, switching to a higher-yield option can take just a few minutes. Start by comparing high-yield savings accounts across banks and online platforms. While the advertised rate is important, also check for minimum balance requirements, monthly fees and whether the account is FDIC-insured to protect your deposits. Start by comparing high-yield savings accounts across banks and online platforms. While the advertised rate is important, also check for minimum balance requirements, monthly fees and whether the account is FDIC-insured to protect your deposits. For example, a Wealthfront Cash Account currently offers a base variable APY of 3.30%, and new clients can get a 0.75% boost during their first three months on up to $150,000 for a total APY of 4.05%. That’s more than 10 times the national deposit savings rate, according to the FDIC’s February report. With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks. If you want to search around for the best rate possible, you can also check out the Moneywise list of the Best High-Yield Savings Accounts of 2026 and find an offer that fits with your savings goal. Once you’ve chosen an account, sign up and link your existing bank account. From there, transferring your cash is typically quick and easy. That’s all it takes to start earning a higher return. On a $20,000 balance, the difference between a traditional savings account and a high-yield one can add up to hundreds of dollars a year. It may not be a dramatic windfall, but it’s one of the simplest ways to earn more on money you’re already holding, often in just a few minutes. You May Also Like - Are you overpaying for car insurance? 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