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As interest rates rose significantly in the last two years, one financial product stood out: high-yield savings accounts (HYSAs). HYSAs are now a primary choice for Americans looking to earn a little interest on their savings with low risk. But not everyone who saves money can earn the same with their HYSAs.
That’s because your earnings, as measured by annual percentage yield (APY), can vary depending on where you live, your average balance, and the APY your bank offers. Some states are already in a great position to earn substantially more each year for various reasons, including higher household financial literacy, income levels, and fintech adoption. This blog will discuss HYSA earnings by state, indicate which states are “saving smart”, and explain how Beem is helping users earn HYSA revenues without effort.
HYSA Earnings by State: How Interest Is Calculated
Before diving into the data, let’s examine how HYSA interest earnings are calculated.
The formula is simple:
Annual Interest = Balance × APY
For example, if you deposit $10,000 into a HYSA offering 4.5% APY, you’ll earn $450 annually—assuming the rate is stable and compounding is consistent. Most HYSAs compound monthly or daily, slightly boosting overall returns, but for simplicity, we’ll use annual compounding here.
What Influences Earnings?
Knowing these factors empowers you to take control of your savings strategy. Even if your state’s average balance is low, you can maximize your earnings by:
- Building up your savings balance over time.
- Switching to accounts with higher APYs using tools like Beem.
- Educating yourself about regional and national HYSA options.
With the right approach, you can overcome the limitations of where you live and make your money work harder, turning modest balances into meaningful annual interest gains.
The National Picture: Average HYSA Earnings in the U.S.
The average American has approximately $7,000–$10,000 in liquid savings. Let’s say the average is $10,000, stored in a HYSA offering 4.5% APY—a competitive but achievable rate in 2025. That’s $450/year in interest—passive income just for parking your money in a smarter place.
However, millions of Americans still keep their savings in traditional accounts, earning just 0.01%–0.5% APY, where the same $10,000 might earn $10–$50/year. That’s a lost opportunity of over $400 per year.
This is where Beem comes in. With tools that help users compare high-yield savings account returns, Beem ensures you’re not leaving money on the table. Our platform enables you to maximize your HYSA earnings with Beem by recommending top APY options and managing your rate-switch strategy.
State-by-State Breakdown: HYSA Earnings Across the US
Let’s examine how average HYSA earnings vary by state. The following figures are based on publicly available data on average savings per capita and estimated APYs.
| State | Avg. Savings Balance | Avg. APY | Annual HYSA Earnings |
| California | $12,000 | 4.8% | $576 |
| New York | $11,500 | 4.6% | $529.00 |
| Texas | $10,000 | 4.5% | $450 |
| Florida | $9,500 | 4.4% | $418 |
| Illinois | $10,200 | 4.3% | $438.60 |
| Washington | $11,000 | 4.6% | $506 |
| Georgia | $8,500 | 4.2% | $357 |
| Ohio | $9,000 | 4.0% | $360 |
| Pennsylvania | $9,800 | 4.1% | $401.80 |
| Alabama | $7,500 | 3.8% | $285 |
Top performers like California, New York, and Massachusetts earn more due to higher average savings and quicker adoption of high-interest financial tools. To explore top APYs available in your state, Beem offers a geo-targeted savings comparison engine that matches users with the best HYSA providers in their area.
Why Some States Earn More (or Less)
Some states earn more or less from HYSAs due to differences in income levels, cost of living, savings habits, and access to high-yield accounts. New York often leads thanks to higher average balances and fintech use.
So, why the disparity?
Here are the top factors impacting HYSA earnings by state:
- Cost of Living and Income Levels: States with higher wages and living costs, like New York and California, naturally have higher average savings balances, translating into greater interest earnings.
- Digital Banking Adoption: Urbanized, tech-savvy regions are quicker to adopt online banks and neobanks, often offering the best HYSA rates.
- Financial Literacy and Access: In some states, residents’ lack of awareness about high-yield options means they stick with traditional banks. Financial education plays a huge role in bridging this gap.
That’s where Beem helps underperforming regions catch up. With personalized recommendations and real-time rate tracking, Beem empowers users in every state to earn more, no matter their current bank setup.
HYSA Earnings by State: How to Maximize Your Earnings
You don’t need to reside in a high-income state to maximize your savings. Even if you are in a state with lower average earnings, you can still surpass the national average by taking proactive steps:
- Find the Best APYs: HYSA interest rates fluctuate, with some accounts offering up to 5.25% APY in 2025. Regularly comparing offers using tools like Beem’s HYSA finder helps you discover the most rewarding savings options.
- Avoid Hidden Fees: Some banks advertise high APYs but impose fees, withdrawal limits, or minimum balance requirements that reduce your actual earnings. Always read the fine print carefully to ensure you benefit from a high-yield account.
- Move Your Money When Needed: Don’t get stuck in low-yield savings out of convenience. Actively monitor rates and be ready to switch accounts or banks to higher APYs. Beem makes it easy to track and transfer your funds wisely.
- Use a Curated List of Top Performers: Beem curates and updates a trusted list of HYSA providers based on APY rates, customer feedback, and account features. This helps you quickly find reliable, high-performing accounts suited to your needs.
Using Beem’s rate comparison engine, you can always compare high-yield savings account returns across different banks and credit unions.
Beem’s State-Level HYSA Insights and Tools
Beem isn’t just about showing top APYs. It’s about analyzing regional data to surface smarter savings strategies. Here’s how Beem helps:
- State-Level Benchmarking: Beem lets you compare your HYSA earnings with those of others in your state or region, helping you understand your position and encouraging smarter saving habits based on local trends and average balances.
- Smart Alerts: Beem sends timely notifications whenever better HYSA rates or new high-yield offers appear, so you never miss an opportunity to boost your savings with higher returns.
- Auto Recommendations: Based on your savings goals and profile, Beem automatically curates a personalized list of top-performing HYSA partners, making it easy to choose the best accounts tailored to your financial needs.
- Personalized Financial Planning: Beem offers customized advice that balances your need for easy access to funds, optimal interest yields, and acceptable risk levels, helping you create a savings strategy that fits your lifestyle and goals.
With Beem, you don’t need to research endlessly. You get access to curated, trustworthy financial tools that make your savings work harder, no matter where you live.
Conclusion
The data shows that HYSA earnings differ significantly across states, influenced by average income, technology adoption, and financial literacy. States with higher incomes and greater access to digital banking often see residents earning more from their savings. However, where you live doesn’t have to limit your financial potential. Even if you’re in a state with lower average earnings, you can still maximize your savings by using smart tools designed to find the best opportunities.
Whether you choose an online bank or a neobank like Beem, choose a HYSA that fits how you live, save, and manage your money. Download Beem, the personal finance app trusted by more than 5 million Americans, to open your HYSA, track interest in real time, and connect your savings to smarter money habits. In addition, Beem’s Everdraft™ lets you withdraw up to $1,000 instantly and with no checks.
