Avoid This Simple Banking Mistake That Could Cost You Over $1,000
Written by
Jennifer Taylor
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There are a lot of mistakes you can make with your money. We tend to think of the big ones, like overspending, racking up credit card debt or having no savings. Most people, however, don’t realize how much where you put your money matters.
Not keeping your money somewhere that pays a decent APY is a simple mistake that too many people make — and it can cost you some serious money.
Here’s Why You Need a High-Yield Savings Account
The national average savings account interest rate is 0.46% annual percentage yield, which isn’t great. If you open a traditional savings account, you’ll likely be offered a rate somewhere in this neighborhood.
On the other hand, a high-yield savings account typically pays notably higher. This allows you to earn passive income on your savings with no risk. It’s the least any decent bank should do for you as a customer. Even better, look for a high-yield savings account that offers interest that compounds daily, which grows your money at an even more rapid pace.
Jenius Bank™, for example, offers a 5.25% APY1 on its savings account — 11 times the national average2. Choosing to keep your money in an account like this could make a big difference over time.
How Choosing the Wrong Bank Could Cost You Thousands
Too many people make the mistake of keeping their hard-earned money in a traditional savings account. Over time, that mistake could cost you thousands of dollars. Let’s break it down:
For example, if you deposited $5,000 in a Jenius Savings account, then didn’t touch it for an entire year, you would have $5,263. This number would rise to $6,458 in five years and $8,340 in 10 years — assuming the same initial deposit and a 5.25% APY, compounded daily.
A deposit of the same amount looks a little different with a traditional savings account, at an APY of 0.46%. After one year, you’ll have $5,023, rising to $5,116.06 in five years and $5,234.82 after 10 years, assuming the same initial deposit and a 0.46% APY, compounded daily.
That’s a difference of more than $3,000 in your savings — just for choosing the wrong bank.
When you open a Jenius Savings account, you’ll pay absolutely no fees. This means no charges for monthly maintenance, withdrawals, inactivity, overdrafts, account opening, account closure or excessive transactions.
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Plus, your money is FDIC-insured up to $250,0003. Additionally, there’s no minimum deposit requirements, so you won’t have to worry about having a certain amount available to open the account or keeping the right amount of money in it. No matter what the size of your balance, you’ll still be able to earn.
How to Start Earning 5.25% APY on Your Savings
Ready to open a high-yield savings account? As you’ve seen, keeping your money in a traditional savings account may be a costly mistake.
Luckily, it’s a simple mistake to avoid. Learn more about Jenius Bank and start maximizing your earnings.
Jenius Bank is a division of SMBC MANUBANK. Member FDIC.
1Variable Annual Percentage Yield (APY) as of 2/13/2024 and subject to change at any time.
2The national average rate is accurate as of 2/20/2024 from the FDIC National Rates and Rate Caps for Savings deposit products.
3FDIC Insurance up to the maximum allowed by law. Deposits at Jenius Bank and SMBC MANUBANK are combined for the purpose of calculating FDIC insurance limits.
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