MW Make this money move now to earn a lot more in your savings account

By Charles Passy

Every week, we'll offer you money tips to help you earn it, stack it and grow it.

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- Charles Passy

MONEY-SAVING TIP OF THE WEEK: Make this move to earn a lot more money in your savings account

Are you putting your money to work?

If you have more than you need in your checking account, you're letting your cash become the financial equivalent of a couch potato. It's just, well, sitting there, earning little to no interest.

And that's when a high-yield savings account can help.

Such an account - often referred to by its initials $(HYSA)$ - comes with a considerably higher interest rate than a traditional savings account and is commonly offered by online-only banks. Consider: The APY (annual percentage yield) for all savings accounts, as of December 2025, was 0.63%, according to Bankrate; by contrast, the highest of the HYSAs topped 4%.

To be clear, you'll still likely need a checking account to pay your monthly bills - your rent, mortgage, credit cards or car loan, for example. And financial advisers suggest having a solid buffer - meaning some extra dollars in the account so you don't overdraw it and get charged penalties.

But anything beyond that figure can go into the HYSA, which is typically FDIC-insured (more on that later) and easy to access online. And if you need to transfer money from your HYSA into your checking account, it's usually no trouble to link the two, regardless of whether they're at the same bank or not.

The HYSA can also effectively function as your emergency savings account to guard against a sudden job loss, major medical issue or other unexpected life scenario. Advisers typically recommend having enough in such savings to cover 3-6 months of expenses.

Naturally, there are some caveats to consider. Your interest rate with an HYSA can fluctuate over time (and, yes, go lower). This is not like a CD where your rate is fixed. But unlike a CD, you can make penalty-free withdrawals from your HYSA, though there may be certain limits on the number per month.

Finally, look for the HYSAs with the highest rates - and some banks will offer a sign-up bonus, too (think a couple of hundred dollars with a $25,000 initial deposit). You can see if your current bank or credit union offers a competitive HYSA. And it's easy to check rates among different banks through sites like Bankrate.

"The key is giving cash a job," says Joon Um, an adviser with the California-based Secure Tax & Accounting firm.

DEFINITION OF THE WEEK: FDIC insurance

You've heard of life insurance. And health insurance. And many other forms of financial protection you can purchase - like an extended warranty on an appliance. But here's a type of insurance that comes automatically with almost any bank account you have. FDIC refers to the Federal Deposit Insurance Corporation, an independent agency created by Congress that guarantees any bank deposits you have - up to $250,000. And in some cases, coverage goes beyond $250,000 if you have multiple accounts with the same bank, depending on how the accounts are categorized, as per the FDIC website.

The basic idea? Even if your bank goes belly up, your money will be safe.

But keep in mind that your FDIC insurance won't cover stocks or bonds (or crypto, for that matter). The same applies to any U.S. Treasury bills, bonds or notes, though those are backed "by the full faith and credit of the U.S. government," according to the FDIC.

What about a money market fund held through a brokerage firm? That's not FDIC insured, though, as Vanguard notes on its website, the money may be insured via the Securities Investor Protection Corporation (SIPC).

Checking or savings accounts held at a credit union aren't covered by the FDIC, but they are federally insured for up to $250,000 through the National Credit Union Administration (NCUA).

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TAKE MARKETWATCH'S 7-DAY MONEY CHALLENGE

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IF MONEY IS NO OBJECT: The $250 chocolate truffle

Valentine's Day is around the corner - and that means many of us are going to be looking for that special something to buy our beloved.

But could that be a single bonbon costing as much as a week's worth of groceries?

Fritz Knipschildt, a Connecticut-based chocolatier, has such an offering - a chocolate truffle that has a real truffle (as in the fungus kind) wrapped inside it. And, yes, it costs $250 and is sold through the Goldbelly platform. Billed as "pure extravagance," the sweet treat is made with what's described as a "decadent" 70% Valrhona dark chocolate. Naturally, it comes packaged in a gold-colored box.

Knipschildt says the bonbon is actually not a real money-maker for him since the raw ingredients - especially the imported fungus - are so expensive. But he also says the taste is on another level, with the fungus providing an umami-like richness that complements the chocolate. "It's like, 'Oooh, wow,'" he says.

Hmm. I'm all in favor of wow-worthy tastes. But I somehow doubt you need to go to these finger-licking lengths. And the culinary pros I spoke with are in agreement. Gustavo Tzoc, executive pastry chef at the acclaimed New York City restaurant Junoon, says a box of Godiva chocolates can offer good bang for your Valentine's Day buck - or you can consider an assortment from any number of independent chocolatiers if you want something in a more exclusive (but well under $250) vein.

Knipschildt doesn't necessarily disagree. He notes he's got assortments, too - starting at around $35. And if it's truffles you still seek for your soulmate, I'd suggest complementing the bonbons with a bottle of truffle oil - for under $25.

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-Charles Passy

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January 27, 2026 09:50 ET (14:50 GMT)

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