Personal Financevadimgouida from Getty Images Pro and ansonsaw from Getty Images SignatureMarc GubertiBaby boomers have spent multiple decades working hard and building up their savings. The median savings of baby boomers is $202,000. You can have that cash work hard for you in a high-yield savings account instead of having it sit in a checking account.Baby boomers can make a lot of extra money in 2025 just by capitalizing on higher APYs.
The median savings account is $202,000 for boomers.
A high-yield savings account minimizes risk and can result in an additional $8,000 per year with a high APY.
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High-Yield Savings Accounts vs. StocksStocks can generate higher long-term returns than high-yield savings accounts. These assets make more sense for young investors who are a long way from retirement.However, many people opt for more defensive investments as they get older. They don’t have as much time to withstand market downturns before they have to withdraw funds from their portfolios. The focus shifts from accumulating wealth to preserving the nest egg. High-yield savings accounts offer practically risk-free returns due to the FDIC. Savings Rates Have Increased SignificantlyThe Federal Reserve’s rate hikes set the motion for attractive APYs for high-yield savings accounts. It’s possible to find high-yield savings accounts with APYs above 4.00%, especially if you compare online banks.Many baby boomers have accounts with more traditional banks like Citibank and Chase. They didn’t have online banks as an option and have gotten comfortable with their current accounts.However, exploring a bit can get you more mileage out of your money. Baby boomers can make small changes and deposit some of their money into a high-yield savings account from a different institution instead of moving all of their funds. It may eventually make sense to move all of your funds from a low-yield account to a high-yield account once you get more comfortable with the new bank account.How Much Can You Earn with 2.00% APY?Dragana Gordic / Shutterstock.com The median savings account is $202,000 for baby boomers, and a 2.00% APY can give you plenty of mileage. That rate would result in an additional $4,040 in 2025. Then, the balance would become $206,040 by the end of the year.The great thing about interest is that it compounds. In 2026, a $206,040 balance with a 2.00% APY results in $4,120.80 in interest income. The savings account would then be valued at $210,160.80.How Much Can You Earn with 3.00% APY? Your earnings will go up if you secure a high-yield