It’s a reality that many financial institutions are starting to face: The digital checking account boom is not as profitable as it might seem. Offering free checking accounts online may seem like an attractive entry point, but it comes at a high cost. These accounts typically attract low-balance, low-engagement customers, and while they may temporarily boost deposit numbers, they rarely generate the kind of long-term growth banks need.
So, what’s the alternative?
At Plinqit, we’ve seen firsthand how high-yield savings accounts (HYSAs) represent a much more lucrative and sustainable approach to account acquisition. We’ve helped our bank clients gather nearly $3 billion in deposits and we’ve observed that the average balance for a high-yield savings account is significantly higher — around $45,000.
These accounts not only bring in more money, but they also attract a different type of customer: financially stable, engaged, and more likely to deepen their banking relationships over time.
The case for high-yield savings accounts
Let’s do some math.
Many banks look at average customer acquisition costs (CAC) as a marketing KPI, but striving for a low CAC isn’t enough. If your CAC is low but the average value of the accounts opened and funded is also low, where is the ROI? Instead, it’s worthwhile to look at CAC against the value of the account opened.
Fintel Connect’s 2025 Cost-Per-Acquisition Benchmarking Guide shows that the target cost for acquiring a new checking or savings account is $175 and data from StrategyCorps show that more than one-third of checking accounts carry an average balance of under $1,000. Compare this to the average balance for a high-yield savings account, which is closer to $45,000, based on Plinqit’s client data.
Not only are balances higher, high-yield savings customers tend to be financially savvy and goal-oriented. They are likely to maintain multiple banking products, such as mortgages, investment accounts, and credit lines. By attracting these individuals with a high-yield savings offer, banks position themselves for deeper, more profitable relationships. The connection is not just transactional; it is rooted in financial goals and long-term planning.
Unlocking business and commercial growth
High-yield savings accounts don’t just benefit retail customers — they also have implications for business and commercial banking growth. Entrepreneurs and small business owners, in particular, benefit from high-yield savings as a financial safety net. Having accessible savings allows them to take calculated risks, invest in their businesses, and seize opportunities when they arise. It’s not about pinching pennies — it’s about building a foundation for long-term success.
Banks that prioritize high-yield savings offerings can attract financially disciplined business owners who understand the value of liquidity. These customers are not just saving for emergencies; they’re preparing for expansion, hiring, and investment. By establishing relationships with them early, banks create opportunities to provide business loans, credit lines, and treasury management services as their financial needs grow.
Less fraud, more loyalty
Another compelling reason for banks to prioritize high-yield savings accounts is the lower risk of fraud. It’s no secret that digital banking has been a target for fraudsters, especially when it comes to online account openings. The low barriers to entry for checking accounts — particularly those with no fees or minimum balances—make them an appealing target for fraudulent activity.
High-yield savings accounts, on the other hand, attract a different clientele. Since these accounts are tied to long-term financial goals, the individuals opening them tend to be more selective and committed. This results in fewer fraudulent accounts, greater account longevity, and a more stable deposit base for banks.
A long-term strategy for sustainable growth
To succeed in today’s digital-first world, banks must shift their focus from short-term gains to long-term growth. Digital account acquisition is not just about increasing the number of accounts — it’s about cultivating relationships with financially stable customers who will invest in the bank’s products and services over time.
By prioritizing high-yield savings accounts, banks can attract a customer base that is committed to financial growth and less likely to be lured away by competitors. This approach not only strengthens the institution’s bottom line but also fosters more meaningful and lasting customer relationships.
In the end, high-yield savings accounts aren’t just a better entry point for new account holders — they are a smarter strategy for growing wallet share, expanding business banking opportunities, and building a stronger, more profitable financial institution.
Kathleen Craig, a former community banker from Michigan, is founder and CEO of Plinqit, a fintech focused on customer attraction, retention and financial wellness via its savings platform.