Banks want to pay over 5% APY for my money, but I'm sticking with my savings account for 3 reasons

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• I've considered moving my money to earn more interest.
• However, I like my bank's features, fees, and CD options.
• Earn 5.26% APY with a NexBank High Yield Savings Account.

A while back, my money nerd friends and I were geeking out over a credit union in Michigan offering over 7% APR on a certificate of deposit. We got so wrapped up in the idea that we looked into the requirements of joining said credit union. We jokingly schemed to persuade relatives who were eligible members to sign up, so that we could join by affiliation.

It got me thinking about the money I have stashed away in my current high-yield savings account at Ally, paying 4.20% APY. Current high-yield savings rates are topping 5% (and CD rates are about the same), so could it be worth it to go to the trouble of opening another savings account elsewhere, just to scoop up an attractive interest rate?

After mulling over the possibility, I ultimately decided against it. Here's why I'm sticking to my current savings account.

I'm happy with the savings features

For the last few years, I've been diligently putting away cash for my short-term savings in an Ally bank account .

Ally makes it pretty easy to link up to my other accounts. Plus, there are easy ways to set my savings on autopilot, such as creating different savings buckets for each goal, roundups for every transaction, and recurring transfers. There's also the surprise savings feature, which looks at your spending to spot areas where you could potentially save more — and automatically moves money into your account for you.

Right now, I'm working toward bulking up my emergency fund , family fund, and also for big-ticket goals like a vacation and new computer. For most of these accounts I've set up recurring transfers each month. And when I have "extra money" coming in from my freelance business after all my expenses are accounted for, I move small amounts into my different goals.

I always feel like I could do better with my savings, but I'm happy that I have an easy system in place to help me sock away at least a little each month. That way, I'm making steady progress on my money goals.

There aren't any fees

While a savings account might offer super high interest rates, it might charge a monthly maintenance fee, or require you to keep a certain amount in your account. Otherwise, you'll get hit with a monthly fee. With Ally, I can enjoy the fact that there are no monthly account fees, nor a minimum balance requirement.

So if my balance ever gets low, I won't enter "getting dinged with fees" territory. Plus, money I would be spending on bank fees can now go into my savings, which helps me grow my savings even quicker.

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It's easy to open and maintain CDs

Earlier this year, I wanted to make the most of the money sitting in my savings that I was confident I wouldn't need anytime soon. So, I moved part of my funds into several CDs. Because Ally offers different types of CDs, I didn't have to open an entirely new savings account. The process was pretty straightforward.

And while some banks and credit unions offer CDs with higher interest rates, that would require applying and setting up a new account. Plus, to snag the highest interest rate, you might need to park, say, $50,000 in a two-year CD . That's more money than I would ever feel comfortable keeping in a short-term savings account, let alone locked for a long stretch.

To avoid having all my funds locked into a single CD, I'm doing a CD ladder , which means I put money into different CDs with different term lengths, from three months to a year. That way, I can earn a bit more on interest and can have access to my funds in case the need pops up.

Sure, rates are a big part of deciding which high-yield savings account to go with. But as I'm happy with Ally's features, fees, and other available accounts and products, I'm sticking with it for now.

This article was originally published in September 2023.