Chasing the highest-yield savings account: More trouble than it’s worth?

“We’re looking at a few bucks a month," he said.

The hassle of opening a fresh account, with its new account numbers and logins, wasn’t worth the trouble, he reasoned. He kept his $10,000 parked at Ally. It has been there since 2023.

Even dedicated rate-chasers are finding that there isn’t much reason to hop from bank to bank in search of higher yields. Interest offers aren’t quite as competitive as they were before the Federal Reserve started cutting rates in September. Because banks tend to lower their interest rates quicker than they raise them, today’s highest rate might not be tomorrow’s.

The highest yield on a savings account tracked by Bankrate this month was 4.85%, down from 5.55% over the summer. The national average rate is far lower at 0.48%.

Storing $10,000 in a savings account with a 4.85% annual rate, compounded monthly, would earn about $2,700 in interest over the next five years if the rate stayed constant. Storing it in an identical account that earns half a point less would mean sacrificing just over $300 in interest during that time, according to NerdWallet.

“Consumers have become much more aware of where their money is parked and expect to earn something on it," said Scott Hildenbrand, chief balance-sheet strategist at Piper Sandler, an investment bank. “But that doesn’t mean they’ll jump at every slight increase. It has to be worth the effort."

When the Fed was lifting rates at a rapid clip in 2022 and 2023, bank customers moved hundreds of billions of dollars into accounts that offered better returns than plain old savings accounts. Many kept opening new accounts as banks competed with each other to offer the loftiest rates. Banks often require customers to deposit or maintain certain balances to get the advertised rate.

Certificates of deposits, money-market funds and Treasury bills also paid healthy interest. Cash returns were among the biggest financial benefits for Americans when inflation was rapidly driving up the price of groceries.

Travis Warden, a 39-year-old marine safety specialist in Houston, built his six-figure savings as he shifted from bank to bank chasing interest rates. “It’s a lot of work," he said.

While he still regularly monitors rates across different institutions, he hasn’t found a reason to move from Wells Fargo in two years. He calculates that chasing a marginally better rate would yield only about $50 more annually. That isn’t enough to justify switching, he said.

“You’re essentially trading your time on earth for money," he said.

Customers added $119 billion to new and existing high-yield savings accounts at online banks in 2023, according to banking consulting firm Curinos. That is down from $174 billion in 2022.

With inflation now more muted and the Fed cutting rates, banks aren’t all responding the same. Some hold rates steady for longer to attract or retain deposits, analysts say, while others lower them more quickly. That means today’s best-paying bank might not hold that title a month or two from now, says Adam Stockton, managing director at Curinos.

Online banks, which typically offer the highest yields, tend to be more resistant to lowering rates. They rely on competitive rates to attract customers, unlike traditional banks with extensive branch networks. Still, some advertise competitive rates but pay longtime customers lower ones, The Wall Street Journal previously reported.

Marshall Abrahantes, a 30-year-old engineer in Las Vegas who maintains multiple bank accounts, earns 4.5% on his high-yield savings. This month, he spotted online institutions offering more, but he wants time to research their trustworthiness and withdrawal limits before switching.

“I’ll get to it after the holidays," he said.

Write to Dalvin Brown at dalvin.brown@wsj.com