One thing I still can't get used to while living in the U.S. is the interest rates on bank savings accounts.

In South Korea, when you open a bank account, the savings interest rates vary depending on the type of deposit, the bank, and the duration of the account. As of 2025, the average deposit interest rate at major banks in South Korea is between 1% and 3%, while savings banks offer rates between 2% and 4%. However, in the U.S., the interest rates for regular savings accounts are very low, ranging from 0.01% to 0.4%, and higher rates are limited to specific products like high-yield savings accounts (HYSA) or CDs from some online banks.

So why are bank interest rates in the U.S. so low?

Major banks in the U.S., such as Bank of America, Wells Fargo, and Chase, already have millions of customers. They have little incentive to attract customers through deposits because most customers continue to use the same bank out of 'inertia.' Since customers don't leave, there's no reason to offer higher interest rates. Thus, there's a mindset of "those who will come will come anyway" despite the low rates.

Additionally, regular savings accounts in the U.S. allow withdrawals at any time, making them a source of funds with low operational stability from the bank's perspective. Therefore, there is no incentive to offer high interest on such funds.

Having lived in the U.S. for a while, I can definitely feel the difference. This is not a country that 'saves money,' but rather one that 'invests money.' When you work, discussions about 401(k)s, IRAs, ETFs, and even cryptocurrencies come up naturally over lunch with colleagues or friends, like "Did you see the gold prices rising lately?" or "How much Tesla stock do you have?"

However, there's no one who says they are saving money in a savings account.... This is because the U.S. is in an era where "money must work to survive." What happens if you just leave it in a bank account? The money quietly, slowly, and surely dies there. Of course, in this era of high interest rates, CDs are yielding over 4%, so they are not a bad option.

But the regular savings accounts we typically use still yield between 0.01% and 0.4%. In contrast, online high-yield savings accounts are a completely different story. Currently, banks like Varo Bank, AdelFi, and Fitness Bank offer APYs between 4.3% and 5.0%. This feels like a completely different world compared to traditional bank savings. Even with the same amount of money, the results are worlds apart.

Surprisingly, over 70% of Americans do not use high-yield savings accounts. They just continue using the bank they've always used, often unaware of what the interest rates are.

Banks are very aware of this.

Thus, there's a calculation that "customers will stay even if we don't offer high rates." They are still accustomed to the low rates of traditional banks, putting their money in without much thought. Moreover, more than half of them do not even have a thousand dollars in emergency savings.

With interest rates at rock bottom and prices rising every month, isn't it a big problem that money is just sitting idle? Whether your money remains as "idle money" or becomes "working money" depends on you. If you have short-term goals, start looking for high-yield savings accounts.

Wise individuals keep only as much money in their bank accounts as necessary, while directing the rest into online high-yield accounts (HYSA) or investment products.

Remember, in the U.S., banks are not places that grow your assets; they are merely places that store them.

To manage your money effectively, you need to broaden your perspective beyond the bank.