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Earning interest in a savings account is a reliable way to get some extra money. The process isn’t flashy or instant, but it works. In three and a half years, I earned over $8,000 in interest from my high-yield savings account and two certificates of deposit.
A favorable rate environment and the ability to save consistently made a meaningful difference for me. While those factors aren't always in everyone's control, how and where we save are. Building good habits can pay off regardless of the market.
My experience writing about bank accounts for a decade helped me apply certain practices to boost my savings. Here are three strategies that made a difference for me and one thing I wish I had done earlier.
1. Getting a high-yield savings account
Banks can seem interchangeable, especially big brands, but their rates on savings accounts are not. Many online banks offer savings accounts with annual percentage yields around 10 times higher than the national average, which was 0.38% in June 2026.
» See the latest high-yield accounts: Best savings rates right now
I opened my first high-yield savings account at an online bank in 2015. Competitive rates were low back then, around 1% APY. But unlike the previous rate at my national bank, my high-yield rate followed the direction of the Federal Reserve’s benchmark rate more closely.
Fast-forward to 2023: The Fed was in the middle of ongoing rate hikes in an attempt to curb inflation. My bank responded by raising my APY: 3.30% that January, which became 4.34% by December.
The majority of my savings interest came down to saving regularly and having a high rate while the Fed’s rate remained — and remains — elevated. A rate isn’t like a bank account sign-up bonus where the payoff happens as one lump sum. I had to save for years for my balance to benefit from a higher-rate environment.
2. Setting up auto-transfers on payday
Creating a savings habit took time, especially earlier in my career when I moved to San Francisco. In addition to living in a city with a high cost of living, I budgeted the same way I prefer to cook: Eyeballing amounts instead of measuring everything.
Over time I wanted an easier way to save, so I automated it. Twice a month, I receive my paycheck as a direct deposit in my checking account, and my bank automatically transfers 20% to my savings account.
This process involved finding a feature called “automatic savings” in my bank’s mobile app and choosing “paycheck percentage” from a list of savings programs. But check your bank’s website and mobile app because the features may differ. My bank only offers paycheck percentages on its app, not its website.
If your bank’s only automated feature is recurring transfers, figure out the amount to save per paycheck and schedule the transfer after payday. Or, if automating isn’t for you, do what I did originally: See what you can afford to save after expenses each month, then make manual transfers.
3. Putting some savings into CDs
My savings account rate wasn’t the highest out there, but I didn’t want to go through the hassle of switching. Plus, rates on savings accounts can change at any time. So I added a new element to my savings: short-term certificates of deposit.
CDs are time-bound savings accounts that can have higher rates than regular savings accounts. CD rates are also fixed for a term, typically up to five years. I had to be sure I could give up access to some savings since there’s usually a penalty for withdrawing from a CD early. The penalty can wipe out some or all interest earned.
“CDs work best when your timeline is clear. If you won’t need the money for six to twelve months, you can earn a little more without adding much risk,” Derek Brainard, a certified financial planner, said in an email. Brainard is the director of financial education at the AccessLex Institute, a financial literacy nonprofit.
I opened an 11-month CD with a 5% APY in 2023 and a one-year CD with a 4% APY in 2025. CD rates across the board gradually fell, but I got the highest rate my bank offered each time. By the end of June 2026, I made $300 more from these CDs than I would’ve with that same amount in my savings account. The difference isn’t eye-popping, but it was worth it for me.
» See top yields: Best CD rates right now
“I like to think of CDs as parking spots that pay you to park,” Brainard said. He notes that CD earnings don’t grow in value, like money invested in the stock market, or have tax advantages, but CDs can be a low-risk and “smart place to earn something on cash you were holding anyway.”
My CDs were nice-to-have accounts after I had a handle on more important savings goals. My savings account still held my emergency fund — about a year’s worth of my living costs, though the standard recommendation is three to six months. And I also regularly contributed to my retirement account.
I should’ve gone beyond savings accounts earlier
I don’t regret keeping my high-yield savings account even as its rate has gotten less competitive. At the time of writing, my APY is 3%, far lower than the top high-yield rate around 4%. But my rate has only been at 3% for a month and it’s possible the rate may turn around. Switching accounts isn’t off the table, and I’m no stranger to chasing a better rate. I’ve switched savings accounts at the same bank twice. But I like having my checking and savings accounts and credit cards in the same place. The exact combination of perks, low costs and convenience I have is hard to match.
What I should’ve done earlier was spice up my short-term cash with strategies outside of a high-yield savings account. I could’ve opened one or two more short-term CDs when rates were soaring to 5%, or even pursued a CD ladder.
This strategy involves dividing up a sum into equal amounts that go into short-, mid- and long-term CDs. A CD ladder provides occasional access to some funds alongside the benefit of high fixed rates for longer terms. I also could have added low-risk investment vehicles, such as money market funds, into the mix to take advantage of yields that can be comparable to CDs without locking up funds.
The overriding mindset that’s helped me save stays the same: I focus on what’s in my control and in my bank account, and am willing to pursue new strategies over time.
