When should you switch savings accounts?
A higher APY can justify a move, but rate alone is not enough. Compare the dollar benefit with fees, transfer friction, account access, and any conditions attached to the new account.
Your current rate has fallen behind
If comparable accounts are paying materially more on the balance you actually keep, calculate the annual dollar difference before deciding.
Fees are eating into the return
An account can become less attractive even without a rate change if monthly charges or minimum-balance rules reduce what you keep.
You need better access
Transfer speed, linked-account support, ATM access, and customer-service needs can justify a move even when the rate difference is small.
The new account adds too much friction
Opening, funding, changing automatic transfers, and keeping track of another institution all have a practical cost. Include that in the decision.
A bonus changes the short-term math
A bank bonus can improve the value of switching, but only after you account for qualification rules, fees, lost interest, and payout timing.
Move deliberately, not reactively
Savings rates can change. A small temporary gap may not justify repeated account hopping, while a large persistent difference on a meaningful balance might.