5 Genius Things People With Healthy Savings Accounts Do

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You don’t have to be a genius to have a healthy savings account, but you do have to make smart decisions with it such as tracking your spending on your bank’s mobile app or putting 20% of your paycheck directly into an emergency fund.

That being said, your first decision should be to prioritize saving money, so it becomes a regular part of your financial routine. After that, the more you stick to your budget and pad your nest egg, the more financial wiggle room you’ll have from month to month or even long term. 

Once you’ve ticked those boxes, it’s time to take it to the next level. Here are some genius things people with healthy savings do.

They Grow Their Savings

If there’s one thing financially savvy people all have in common, it’s that they know the importance of making sure their money is working for them. The easiest way to do that is to make sure you keep your savings in an account that pays competitive interest rates.

The number to keep an eye on here is the annual percentage yield, or APY, which calculates the amount of interest earned over one year. 

The average U.S. savings account APY was 0.42% as of January 15, 2025, according to the Federal Deposit Insurance Corp. (FDIC). However, with the variety of high yield savings accounts available through online banking or in person, you should aim a lot higher than that.

A high APY, combined with its compounding interest, can help boost your savings.

They Set Up Automatic Transfers

Saving money should be as automatic a habit as your transfers, like paying a bill or depositing your paycheck.

One way to ensure you stick to the savings habit is to set up automatic transfers into your high-yield account. This way you pay yourself first and it relieves you of having to make the transfer manually, while also guaranteeing that your savings balance grows regularly and consistently.

The most common transfer frequency is once a month, but you don’t have to stick to that. You could do it weekly if you can afford it, which will grow your savings even faster. Or, if you want to start out slower, set up an automatic transfer once a quarter.

The important thing is that you establish an automated savings plan to ensure your wealth continues to grow,

They Establish Savings Goals

If you’re like most people, you have multiple savings goals based on factors such as your age, family situation and income level. When you are just starting out as an adult, you should prioritize building an emergency fund that can cover three to six months’ worth of expenses.

After that, here are some other common savings goals:

• A down payment on a home
• A college fund for your kids
• A dream vacation
• A second or third car
• Retirement savings

For each savings goal, determine how much money you’ll need and when you’ll need it. From there, you can set aside funds every month for individual categories. A smart strategy is to set up a different savings account for each goal, which makes it easier to track your progress.

They Avoid Fees

The last thing you want from a savings account is a monthly service or maintenance fee that offsets the interest you earn. If the point of a savings account is to grow your wealth, then it doesn’t make sense to pay monthly maintenance fees that reduce your wealth.

Many banks and credit unions waive these fees if you meet certain requirements, such as maintaining a minimum balance. But even that places restrictions on the account. Smart people look for accounts where you pay zero monthly maintenance fees no matter your balance.

They Max Out Their Retirement Savings

If you are not currently maxing out your retirement savings each year, now is a good time to start, if you can afford to do so. In 2025, the contribution limit for employees who participate in traditional 401(k) plans is $23,500 a year if you’re younger than 50.

Here are some other key takeaways: 

• Investors aged 50 to 59 and 64 and over can contribute an additional $7,500 in catch-up contributions. 
• Investors aged 60 to 63 can contribute an additional $11,250 in catch-up contributions. 
• The combined employer and employee contribution limit is $70,000
• It’s especially important to contribute enough to earn your employer match, if they offer one because those matches amount to free money.

Caitlyn Moorhead contributed to the reporting for this article.

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