I'm Earning Less Than 4% APY on My Savings, but I'm Not Switching Banks. Here's Why

My Ally Bank savings account has a lower-than-average annual percentage yield. 

This time last year, the bank's high-yield savings account offered 4.35% APY. Now, I'm earning 3.70% APY. Most banks have lowered their savings APY. 

However, the average is 4.11%, based on CNET's daily savings rate tracking. Some banks are offering even higher than that. Switching banks or opening another savings account elsewhere doesn't take much time, but I'm fine with missing out on the extra interest for a few reasons. Here's why. 

Why I'm not switching banks  

As long as I earn interest close to the average high-yield savings rate, I'm not swapping banks or opening a new account elsewhere.

In my younger years, I remember having a traditional savings account that barely earned a dollar in interest each year, regardless of how high my balance was. 

Even though I'm not earning the absolute highest savings rate being offered today, other banks haven't convinced me to switch. Variable savings rates can fall overnight, so any small difference in APY could change, and it might not make a huge difference in how much I earn from interest in the long run. 

Plus, choosing the right bank isn't just about the savings rate — it's also about the features. 

I like Ally's two unique savings features, Round ups and Surprise Savings, which boost my ability to save more without having to do the work. 

Ally's Round ups feature rounds up the purchases from my Ally spending account to the nearest dollar and saves the change. Once I've accrued $5, Ally moves that money to my savings. And Ally's Surprise Savings feature analyzes my spending and automatically moves small amounts of money from my spending account to my high-yield savings. I'll earn interest on that money, too. 

Read More: I Struggled to Save Money Until I Opened This Bank Account

Why you might switch banks

If you're still earning pennies on your savings and paying unnecessary banking fees, like my teenage self, it's time to switch to a bank that will give you more. Traditional savings accounts offer around 0.04% APY right now, but high-yield savings accounts, especially fully online banks, have above-average rates, some even closer to 5% APY. 

If you're loyal to your longtime bank, consider having multiple savings accounts. There's no harm as long as your money isn't eaten away by monthly fees like mine used to be. Or, if you're chasing as much interest as possible, you might want to switch banks to maximize your earnings while savings rates are still high. Just remember to do the math first.