It’s not you… It’s the national average.
Ever open your banking app to check your interest earned and think, “Uh, where are the earnings?” Chances are, you’re not noticing much impact on your savings. Maybe a few cents, maybe a dollar or two, even on a balance that took years to build.
That’s not a glitch. It’s simply the fact of working with a national average of just 0.62% APY. On $10,000, that’s roughly $62 a year. Less than what most people spend on a single grocery run.
It’s not that your money isn’t trying. It’s just not working very hard. And if you haven’t checked your rate in a while, you might be earning even less than that.
So, what is a high-yield savings account?
A high-yield savings account pays a significantly higher interest rate than a traditional bank account. These accounts are typically offered by online banks and credit unions, and the “high-yield” part just means your money earns more for doing the same thing it would do anywhere else: sitting there.
That higher return comes down to one number: APY, or annual percentage yield. It’s easy to confuse with “interest rate,” but they’re not quite the same thing. The interest rate is the percentage your money earns. APY factors in compounding, the interest you earn on your interest, so it reflects what you’ll actually earn over a year. When you’re comparing accounts, APY is the number that matters.
Fintechs and credit unions offer a much higher APY than big banks because it usually comes down to overhead. Big banks have branches, staff, and infrastructure to maintain, and that cost structure shows up in lower rates for savers. Online banks and credit unions carry less of that overhead, so they can pass more of the savings back to you in the form of a better rate.
Is your money just as safe at a credit union? Yes. Credit unions are insured by the NCUA (National Credit Union Administration) instead of the FDIC (Federal Deposit Insurance Corporation), but the protection is identical—up to $250,000 per depositor, per institution. Same coverage, different acronym.
You could earn more. A lot more, actually.
We know the national average is 0.62% APY, and with $10,000, that money earns about $62 over a year. Right? Right. Here at Mitten, we’re offering 4.01% APY. Do the math… And that same $10,000 earns about $401. That’s a $339 difference for doing absolutely nothing differently. Well, other than us having a bigger, better APY. But it’s the same balance, same year, same effort. The only thing that changed is where the money sits.
Let’s break it down
- $5,000 balance: ~$31/year at the national average vs. ~$201/year with Mitten
- $10,000 balance: ~$62/year at the national average vs. ~$401/year with Mitten
- $25,000 balance: ~$155/year at the national average vs. ~$1,003/year with Mitten
That gap isn’t a teaser rate or a limited-time bonus. It’s just what happens when your savings account is built to actually pay you.
Better saving habits anyone can start
Locking in a better rate is part of it. But smarter saving isn’t some code your techy neighbor figured out. Once you have a rate like Mitten’s 4.01%, the rest comes down to keeping it simple and automatic.
For starters, get your idle money out of checking. Checking accounts are built for spending, not growing, and most pay next to nothing in interest. Anything you’re not using in the next month or two belongs in savings, where it can actually earn something.
Make the transfer automatic. Saving works best when you do it as soon as you have the money available. Set up a recurring transfer to happen as soon as you get paid, even if it’s a small one. That way, you don’t even have a chance to miss it.
Know the difference between an emergency fund and a savings goal. An emergency fund is for the unexpected—job loss, car repair, a surprise vet bill. A savings goal is for something you’re working toward on purpose, like a trip or a down payment. Keeping them separate makes it easier to know how much you actually have for each.
Don’t assume your current bank has the best option. Big banks aren’t always where the best rates live. Instead, there are online banks and credit unions—like Mitten—that routinely offer APYs several times the national average. If you haven’t compared your rate to what’s out there, you’re probably leaving money on the table.
One more thing: check your APY at least once a year. Rates change. An account that was competitive two years ago might be lagging behind today. A quick annual check takes a few minutes and makes sure your money’s still working as hard as it can.
An HYSA built for Michiganders
In Michigan, we like to keep our money local because it means your money is reinvested in the same communities where you live. At a credit union, you’re not just a customer. You’re a member, a part owner, and you’re treated like one.
We created Mitten specifically for Michiganders. A division of Community Choice Credit Union, which has served members for 90+ years, Mitten is a fully digital experience designed for the way people actually manage money today. Yet, it’s rooted in a local institution with a track record no fintech startup can replicate.
And like all credit unions, Mitten accounts are insured by the NCUA, the National Credit Union Administration, up to $250,000 per depositor. Same protection as FDIC-insured bank accounts, just through the federal body that covers credit unions specifically. Your money is just as safe here as it would be anywhere else. It’s just working harder.
Opening a Mitten account takes just 5 minutes
Your savings have been patient. They’ve been sitting there, doing what you asked, earning what they were given. The question was never whether you were saving. It was whether your savings account was holding up its end of the deal. A better rate won’t change your habits or your goals. It’ll just mean your money finally starts working as hard as you do. You can open your Mitten account in under 5 minutes, all online. It’s pretty much the same amount of time it takes you to log into your savings account and see that you earned another $0.17.
Frequently Asked Questions for HYSA Savings Accounts
Is a high-yield savings account worth it?
Yes, for almost anyone with money sitting in a traditional savings account. The national average APY is 0.62%. A high-yield account can earn several times that on the same balance, with no additional risk and no change to how you access your money.
What APY should I look for in a savings account?
Anything meaningfully above the national average of 0.62% APY is a step in the right direction. As of mid-2026, the most competitive high-yield savings accounts are offering APYs around 4%. That’s the range worth shopping for.
Is my money safe in an online savings account?
Yes. Online savings accounts carry the same federal deposit insurance as traditional bank accounts—up to $250,000 per depositor. At a credit union like Mitten, that coverage comes through the NCUA rather than the FDIC, but the protection is identical.
What is NCUA insurance?
NCUA stands for the National Credit Union Administration, the federal agency that insures deposits at credit unions. It works exactly like FDIC insurance for banks. Your money is protected up to $250,000 per depositor, per institution.
How do I switch from a traditional savings account to a high-yield savings account?
You don’t need to close your existing account to make the switch. Open the new account, transfer your balance, and update any automatic deposits or transfers. With Mitten, the whole process takes just a few minutes.
Can I have accounts at a credit union and a bank at the same time?
Yes, there’s no rule against it. Many people keep a checking account at their current bank for day-to-day spending and move their savings to a higher-yield account at a credit union. You get the convenience you’re used to and a better return on your savings.