Banks Hate This High Yield Savings Secret

Why Banks Are Reluctant to Promote HYSAs

Banks typically earn money by lending out the deposits they hold, profiting from the interest differential between their loan products and the interest they pay on savings accounts. High yield savings accounts, however, offer less profit margin for banks because they pay out higher interest rates to account holders. This is why you may not see them heavily advertised by traditional banks. Instead, online banks and credit unions, which have lower overhead costs, are more likely to offer competitive rates that can significantly boost your savings².