As the world’s #1 high-yield savings account (HYSA) fan, you know that I will never shut up about this money tool. 

It also means people ask me a lot of questions about HYSAs, and I’ve been getting this one A TON lately (you might be wondering, too?):

My HYSA interest rate is going down–why is that, and should I switch to another provider?

Why is the rate changing?

First things first: it’s totally normal for high-yield savings account interest rates (or rather APY) to change. You probably don’t see a lot of fluctuations for a traditional savings account interest rate because they’re soooo low–think less than .5%. 

HYSAs interest rates are impacted by a few things, including the federal funds rate and overall market conditions and predictions. You might hear about “the fed” adjusting rates in the news, and this affects everything from mortgages to your HYSA.

After several years of increasing interest rates, the recent trend has been a decrease. When borrowing money is “expensive,” you’re more likely to get a higher interest rate in your HYSA as well. 

Should I switch providers?

You should always feel confident in making the changes you need in your financial setup–BUT I would NOT recommend chasing rates aka “rate chasing.” 

Rate chasing is when you change providers frequently, in some cases every few months, to maintain the highest available rate and take advantage of new customer bonuses (when applicable). 

If you find a significantly better deal or are unhappy with your provider, go ahead and look at other options. But if the difference is minimal, then I wouldn’t go through the hassle of changing. In the current market, providers are changing rates regularly, and you might catch one provider before their rate change when your current provider has already lowered their rate.

Also, I want your money management to be manageable. Constantly looking for the best rate requires a lot of work and generally does net you that much gain. There are better ways to use that time!

Many bonuses also require you to stick around for a certain period of time, so frequently changing providers can work against you. 

And while setting up an HYSA is generally pretty easy, it can be annoying to set up integrations for your direct deposit, money apps, and other accounts continuously.

What if I DO want to change providers?

Every time you move, you should be checking:

• Requirements to get the max rate (you often need direct deposit)
• FDIC-insurance
• Good customer service  

If you’re looking for a new account (or don’t have one yet!), you can see my HYSA recommendation here.

Last thought: remember that it’s more important to have the foundation set (like having an HYSA at all) than it is to optimize every single aspect of your money (like getting the absolute best rate at any moment in time 😅). Make sure your money management plan is doable for you!