4 Savings Account Mistakes That Will Cost You
KEY POINTS
- If you don't automate your savings, ignore APYs, and pay little attention to bank fees, you may be losing money in fees or earning less interest.
- By making strategic money moves, you can earn more and boost your savings account balance.
Saving for the future is a great way to prepare financially. Stashing your cash in a savings account is an excellent strategy because you can earn interest while your money safely sits in the bank. But it's important to make good choices when managing your savings.
Unfortunately, many savers make mistakes without realizing it. Some of these common mistakes have costly consequences. Want to ensure you're getting the best results while you tackle your savings goals? Here are a few saving account mistakes you should avoid.
1. Failing to use automation
Many people fall behind on their savings goals because they fail to use automation to their advantage. You can set up automatic transfers from your checking account to your savings account, so you don't have to make contributions manually. This is easy to do through your bank. Once you set up automatic transfers, saving money is automatic and painless.
Those who ignore automation tools may fall behind because they forget to manually transfer money regularly. When life gets extra busy, it can be easy to get forgetful. We recommend using automation to your advantage because it can help you save more money.
Our Picks for the Best High-Yield Savings Accounts of 2025
| Product | APY | Min. to Earn | |
American Express® High Yield Savings
Member FDIC.
APY
3.70%
Rate info
3.70% annual percentage yield as of April 16, 2025. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.70%
Rate info
3.70% annual percentage yield as of April 16, 2025. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
CIT Platinum Savings
Member FDIC.
APY
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn
$100 to open account, $5,000+ for max APY
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
|
$100 to open account, $5,000+ for max APY
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
Barclays Tiered Savings
Member FDIC.
APY
4.10%
Rate info
Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%.
Min. to earn
$0
Open Account for Barclays Tiered Savings
On Barclays' Secure Website. |
4.10%
Rate info
Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%.
|
$0
|
Open Account for Barclays Tiered Savings
On Barclays' Secure Website. |
2. Not paying attention to APYs
The annual percentage yield (APY) is how much money you can earn from interest by keeping your money in the bank for one year. It's essential to pay attention to bank account APYs so you understand how much you can earn from interest.
Some savings accounts provide meager rates, while others have more competitive rates. Want to maximize your earnings? We recommend keeping your savings in a high-yield savings account. If you ignore APYs, you may earn very little from interest.
Want to earn more from your savings? Consider opening a high-yield savings account. Check out our curated list of the top high-yield savings accounts to find your ideal account.
3. Paying maintenance fees
Every dollar you pay in fees adds up and impacts your wallet. You need to pay attention to the fees your bank charges to avoid losing money. Some banks impose monthly maintenance fees. Every month you pay maintenance fees, your savings account balance decreases.
Luckily, many banks offer fee-free savings accounts, so you could avoid such fees by switching bank accounts. But if you're not careful, you could lose a significant amount of money over time due to bank fees.
To reach your savings goals sooner, consider the Discover® Online Savings account, which offers a competitive 3.70% APY. That's more than nine times the national savings rate! Click here to learn more and open an account.
4. Not making additional contributions
It's great to have money in savings, but there may come a time when you need to use some or all of it to pay an unexpected bill. That's why it's essential to continue contributing to your savings account after you reach your initial goal. It's easy to do this with automation, as we suggested above. But you could also make manual contributions if you prefer.
Whether you make manual contributions or set up automatic transfers, you need to keep saving. Even if you contribute only $10, $25, $50, or $100 monthly, you'll boost your bank account balance. Every extra dollar your set aside gets you closer to achieving your goals.
Set yourself up for success
The fact that you're prioritizing savings is fantastic. But make sure you're making smart money moves that benefit your finances. If you are making any of these common savings account errors, take the time to adjust your habits so you don't lose money.
Our Research Expert
Natasha is a freelance writer who specializes in personal finance, credit card, credit card rewards, and travel hacking content.
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