The Bank Account Hack That Could Save You Hundreds Every Year

Image source: Getty Images Most people don't think twice about where they keep their money. You set up a checking account, deposit your paycheck, pay your bills, and move on. But what if your bank account choice is actually costing you hundreds of dollars a year?Alert: highest cash back card we've seen now has 0% intro APR into 2026 This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes. The truth is, many banks quietly drain your money (or prevent it from growing) through fees and low interest rates. The good news is that a simple bank account hack could help you save hundreds effortlessly -- moving your money to a high-yield savings account (HYSA).The hack: Automate your savings with a high-yield accountThe biggest mistake most people make is keeping too much money in a checking or savings account that earns little to no interest. Instead, you should transfer your extra cash into a high-yield savings account and let it grow automatically.Step 1: Open a high-yield savings accountTraditional savings accounts currently pay an average APY of 0.41%, meaning your money barely grows, and it certainly doesn't keep pace with inflation. But HYSAs can pay 4.00% APY or more, meaning you'll earn nearly 10 times more on your savings.For example, if you keep $5,000 in an HYSA with a 4.00% APY, you'd earn $200 in interest in a year -- compared to just $20.50 in a typical savings account.Don't miss out on extra interest earnings. Check out our curated list of the best high-yield savings accounts today to maximize your APY.Step 2: Set up automatic transfersTo make saving effortless, set up a recurring transfer from your checking account to your HYSA every payday, or utilize the option that some banks have to split your direct deposit between multiple accounts. Even $50 per paycheck can add up over time, and you likely won't notice it's gone from your checking account.Step 3: Keep only what you need in checkingYour checking account should only hold enough money for monthly bills and day-to-day spending. Anything extra should be moved to your high-yield savings account, where it can earn interest instead of sitting idle.Bonus: Avoid hidden bank fees that drain your moneyAnother way banks cost you money is by charging you unnecessary fees. Some traditional banks charge:Monthly maintenance fees: $5 to $30 per month ($60-$360 per year).ATM fees: $3 to $5 per withdrawal if you use an out-of-network ATM -- the fee is shared between your bank and the ATM owner.Overdraft fees: $20 to $30 or more per occurrence.How to stop paying feesSwitch to a no-fee savings account. Luckily, many high-yield savings accounts have no monthly fees, no overdraft fees, and nationwide ATM fee reimbursements.Use direct deposit to meet minimum balance requirements. Some banks waive fees if you set up direct deposit.Set up overdraft protection. Link your checking and savings accounts so money is automatically transferred if needed.By simply choosing a better bank account, you could save hundreds of dollars per year in fees alone.Make the switch todaySaving money doesn't have to be complicated. By switching to a high-yield savings account, setting up automatic transfers, and avoiding hidden bank fees, you may be able to save hundreds of dollars a year -- without changing your lifestyle.This simple bank account move could be one of the easiest money-saving startegies you ever put into place. Don't wait any longer.Alert: highest cash back card we've seen now has 0% intro APR into 2026 This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes. We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.