‘Lazy Interest’ Is Costing You Hundreds — Switch to a 4.00%+ APY Account Instead

I’ve seen this play out countless times: friends proudly say they’re “saving,” but when I ask their bank’s interest rate, they shrug. Later they realize it’s something like 0.01%.

That’s what I call lazy interest — money sitting still when it could be working way harder.

The fix is simple. Moving your cash into a high-yield savings account (HYSA) paying 4.00% APY or more is quick, free, and can put hundreds of extra dollars in your pocket every year.

What lazy interest is really costing you

Let’s say you’ve got $10,000 parked in a big-bank account at 0.01% APY. After a year, you’d earn just $1 in interest.

Now compare that to a 4.20% APY account: you’d earn about $420 in the same time.

That’s a $419 difference for doing nothing more than putting your money in a different account.

If your balance is higher — say $25,000 — the gap jumps into the thousands over a few years.

Lazy interest isn’t just harmless. It’s expensive.

Where to find a high APY

The best high-yield savings accounts usually aren’t at the big household-name banks. Those often stick with near-zero rates because they know customers won’t move their money.

Instead, you’ll want to look at:

• Online banks: Lower overhead costs let them pass along higher interest rates.
• Credit unions: Member-owned institutions that frequently offer competitive yields.
• Regional banks: Some smaller banks run promotional rates to attract new customers.

Most high-yield accounts are FDIC or NCUA insured up to $250,000, and they come with mobile apps, no monthly fees, and easy transfers.