Jun 23, 2026
Nearly half of women may be stuck in a bad financial relationship and they don’t even know it.
A recent Vanguard survey found that while more than 70% of women feel confident about saving money, yet nearly half are keeping their savings in accounts earning less than 3% interest.
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That caught the attention of personal finance expert Suze Orman, who says many savers are unknowingly leaving hundreds or even thousands of dollars on the table each year. According to Orman, the problem often comes down to loyalty.
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Her solution? They may need to break up with their savings account.
“That’s a steep price to pay for convenience,” Orman wrote in a recent blog post, adding it’s “not hard” to find alternatives that will “pay you much more” these days. However, she goes on, many people stick with low-paying accounts despite the fact that a simple switch could help them earn hundreds more each year for “doing essentially nothing.”
Your loyalty could be costing you
According to Orman, the cost of sticking with a low-interest savings account can add up faster than many people realize.
Imagine a prospective homebuyer has $80,000 set aside for a future down payment. If that money is sitting in a savings account earning 1% interest, it would generate about $800 over the course of a year.
Move that same $80,000 into an account earning 3%, and the annual payout jumps to roughly $2,400. That’s an extra $1,600 in a single year. The gap becomes even larger over time as interest compounds. Money that might otherwise be left behind could help cover closing costs, moving expenses, new furniture or simply bring a buyer closer to their down-payment goal.
Compound interest allows savers to earn returns not only on their original deposit, but also on the interest they’ve already earned — creating a snowball effect over time.
“The power of compounding is something that is truly hard to understand until you see it over and over again,” personal finance expert Ramit Sethi told Moneywise.
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So why don’t more people make the switch?
For many savers, it’s the same reason people stay in any long-term relationship: comfort. Their savings account is linked to their checking account. They’ve had it for years and comparing interest rates falls to the bottom of the to-do list.
Like an ex who hasn’t technically done anything wrong, a low-interest savings account can seem harmless. The problem is what it’s not doing for you.
Signs it’s time to move on
For savers who discover they’re earning less than 3% on their cash, the next step is to explore what alternatives are available.
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Many banks continue to offer savings accounts with rates below 1%, while some high-yield savings accounts, money market accounts and cash management accounts offer significantly more. The right option will depend on your financial goals and how quickly you may need access to the money.
For example, someone building an emergency fund may prioritize safety and liquidity, while a prospective homebuyer saving for a down payment may focus on maximizing growth without taking on additional risk.
If you’re unsure which account best aligns with your goals, consider speaking with a financial advisor. A professional can help you evaluate your options and determine where your money can work hardest while still supporting your long term financial plan.
Fortunately, breaking up with a savings account doesn’t have to mean ending your relationship with your bank entirely. Many savers keep their everyday checking account where it is and move only their emergency fund or long-term savings to a higher-yield option.
Before making a move, compare annual percentage yields (APYs), check whether the account is federally insured and review any fees or minimum balance requirements. A few minutes of research could translate into hundreds of extra dollars a year.
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Victoria Vesovski is a Toronto-based staff reporter at Moneywise covering personal finance, lifestyle and trending news. She holds degrees from the University of Toronto and New York University, and her work has appeared on platforms including Yahoo Finance, MSN Money and Apple News.
