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Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.<\/em><\/p>\n If you\u2019re holding $20,000 in cash, where you keep it could determine whether you earn a few dozen dollars or hundreds per year.<\/p>\n 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).<\/p>\n In other words, the vast majority of savers across the country are leaving a lot of money on the table. That\u2019s because the difference between what you can earn in interest from a regular savings account and a HYSA is staggering. That gap isn\u2019t just a technical detail either. It\u2019s money your savings could be earning in the background, with no extra effort required.<\/p>\n Here\u2019s 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.<\/p>\n 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.<\/p>\n Given that the annual inflation rate as of February is 2.4%, according to the Bureau of Labor Statistics (BLS), you\u2019re actually losing purchasing power over the course of a year by leaving cash in a typical savings account.<\/p>\n 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.<\/p>\n 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).<\/p>\n Emerging fintech startups, or so-called \u201cneo-banks,\u201d 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).<\/p>\n Over time, that difference can add up to thousands of dollars simply based on where your money sits.<\/p>\n The good news: switching from a low-yield account to a high-yield account is relatively easy.<\/p>\n Read More: I\u2019m almost 50 years old and don\u2019t have retirement savings. Is it too late to catch up?<\/strong><\/p>\n If you\u2019ve 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.<\/p>\n 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.<\/p>\n If you\u2019ve 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n 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\u2019s more than 10 times the national deposit savings rate, according to the FDIC\u2019s February report.<\/p>\n 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.<\/p>\n 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.<\/p>\n Once you\u2019ve chosen an account, sign up and link your existing bank account. From there, transferring your cash is typically quick and easy. That\u2019s all it takes to start earning a higher return.<\/p>\n 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\u2019s one of the simplest ways to earn more on money you\u2019re already holding, often in just a few minutes.<\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/strong><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our<\/em> editorial ethics and guidelines<\/em>.<\/em><\/p>\n CNBC Select (1); Experian (2)<\/p>\n