Should I Switch Bank Accounts? [Calculator]

Published May 14, 2026

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If you hold a lot of money at a bank that is paying 0.01% APY, which is fairly standard at one of the “big banks,” it always makes sense to switch to a high yield savings account. It's a no brainer.

But what if you have a kinda high yield savings account, say something at 3%, and you see an offer of 4% – should you switch? What if the other account has a slightly higher APY but also has a bonus?

Should you switch?

This calculator should help you decide.

Current account

Balance to consider moving ($)

Current APY (%)

New account

New APY (%)

Sign-up bonus ($)

Transfer time (days money is in transit, earning nothing) ACH transfers typically take 1–3 business days. Wires are same-day but often charge a fee.

Move it

You'll come out ahead by switching.

Stay put — final balance

$1,005

$5 interest

Move it — final balance

$1,045

$45 interest

Net gain from moving

+$40

over 12 months

About Jim Wang

Jim Wang is a forty-something father of four who is a frequent contributor to Forbes and Vanguard's Blog. He has also been fortunate to have appeared in the New York Times, Baltimore Sun, Entrepreneur, and Marketplace Money.

Jim has a B.S. in Computer Science and Economics from Carnegie Mellon University, an M.S. in Information Technology - Software Engineering from Carnegie Mellon University, as well as a Masters in Business Administration from Johns Hopkins University. His approach to personal finance is that of an engineer, breaking down complex subjects into bite-sized easily understood concepts that you can use in your daily life.

One of his favorite tools (here's my treasure chest of tools, everything I use) is Empower Personal Dashboard, which enables him to manage his finances in just 15-minutes each month. They also offer financial planning, such as a Retirement Planning Tool that can tell you if you're on track to retire when you want. It's free.

>> Read more articles by Jim

Opinions expressed here are the author's alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.

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