Suze Orman says women can earn up to thousands more a year by 'doing essentially nothing' — but many are missing out

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Nearly half of women may be stuck in a bad financial relationship without knowing it.

A recent Vanguard survey (1) found that while more than 70% of women feel confident about saving money, nearly half are keeping their savings in accounts earning less than 3% interest.

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That caught the attention of personal finance expert Suze Orman, who says many savers are unknowingly leaving hundreds or even thousands of dollars on the table each year. According to Orman, the problem often comes down to loyalty.

Her solution? Break up with your savings account.

"That's a steep price to pay for convenience," Orman wrote in a recent blog post (2), referring to the low interest rate on most standard savings accounts. She added that it's "not hard" to find alternatives that will "pay you much more" these days.

However, Orman noted that many people stick with low-paying accounts despite the fact that a simple switch could help them earn hundreds more each year for "doing essentially nothing."

According to Orman, the cost of sticking with a low-interest savings account can add up faster than many people realize.

Imagine a prospective homebuyer has $80,000 set aside for a future down payment. If that money is sitting in a savings account earning 1% interest, it would generate about $800 over the course of a year.

Move that same $80,000 into an account earning 3%, and the annual payout jumps to roughly $2,400. That's an extra $1,600 in a single year. The gap becomes even larger over time as interest compounds. Money that might otherwise be left behind could help cover closing costs, moving expenses, new furniture or simply bring a buyer closer to their down-payment goal.

Compound interest (3) allows savers to earn returns not only on their original deposit, but also on the interest they've already earned — creating a snowball effect over time.

"The power of compounding is something that is truly hard to understand until you see it over and over again," personal finance expert Ramit Sethi told Moneywise (4).

For savers who discover they're earning less than 3% on their cash, the next step is to explore what alternatives are available.

Many banks continue to offer savings accounts with rates below 1%, while some high-yield savings accounts, money market accounts, and cash management accounts offer significantly more.

The right option will depend on your financial goals and how quickly you may need access to the money. Typically, the first step is to begin work on building a healthy emergency fund.

An emergency fund is one of the simplest financial safety nets you can build. The general rule of thumb is to save enough to cover three to six months of expenses, giving you breathing room if an unexpected bill arrives or your income suddenly takes a hit.

But Orman has long argued that many households should aim for a bigger buffer.

"You need as much money in the bank that makes you feel secure," she said in an interview with CNBC, adding (5), "Don't go fooling yourself, 'It's okay, I can charge on a credit card, I can do this.' You should have at least eight months. Not six months, not three months, I'd like to see you have eight months to one year."

For those approaching retirement, this number can climb even higher to better cover any down periods in the market.

The key is making sure that money stays accessible.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That's ten times the national deposit savings rate, according to the FDIC's May report.

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.

With inflation climbing again — reaching 4.2% in May, the highest level in three years (6) — your spare cash sitting in a checking or savings account will slowly lose value over time. That's why it's important to separate the money you may need immediately from the money you can afford to invest.

After you've built your emergency cushion, consider putting extra cash into lower-risk investments like Certificates of Deposit.

While high-yield savings accounts can offer attractive rates, they aren't locked in. Banks can adjust APYs as conditions change, leaving savers less certain about future earnings.

CDs, on the other hand, let you lock in a fixed return for a set period, so your earnings stay fixed for a set term, even if market rates slip.

For those seeking predictable, reliable growth, a platform like CD Valet can help you find higher-yield options that work for you, whether you're saving for something soon or building a cushion for the long haul.

CD Valet tracks over 40,000 verified rates from FDIC-insured banks and NCUA-insured credit unions nationwide. Unlike other websites, they show every publicly available rate, ensuring you have a comprehensive view of the market.

Plus, their CD rates are updated continuously, so you can shop, compare and open CDs with ease.

Your approach to money often starts long before you ever open a savings account. The financial environment you grew up in can shape how you think about saving, spending and taking risks as an adult. If you grew up in a household where finances were unpredictable, protecting what you have may feel more important than earning potential returns.

That mindset can make investing feel intimidating. While most people agree that equities can help grow wealth over decades, the short-term ups and downs can be difficult to stomach, making cash feel like the safer choice.

But keeping everything in cash can come with its own risks. Over time, inflation can quietly reduce your purchasing power, meaning your money may not stretch as far in the future.

That's where working with a qualified financial advisor can help. They can help you create a strategy that matches your comfort level, whether that means gradually adding large-cap stocks, diversifying with bonds or using U.S. Treasuries as a more conservative option.

Finding a reliable FINRA/SEC-registered advisor near you is now easier than ever with Advisor.com.

Just enter a few details about your finances and goals, and Advisor.com's AI-powered matching tool will connect you with a qualified expert best-suited for your needs based on your unique financial goals and preferences.

Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.

Finding the right advisor isn't always easy — there's no one-size-fits-all solution. That's why Advisor.com lets you set up a free initial consultation, with no obligation to hire, to see if they're the right fit for you.

Once you've started thinking differently about risk and investing, with or without, the next step is turning that mindset into action. Building wealth doesn't always require making big moves. Often, the biggest difference comes from creating small financial habits and sticking with them over time.

Many people delay investing because they think they need a lot of money to begin. But starting small can still make a meaningful impact — especially when you give your money decades to grow. For instance, investing just $20 per week for 30 years could grow to more than $179,000, assuming it compounds at 10% annually (7).

If those kinds of returns are too tempting to pass up, platforms like Acorns allow you to turn your spare change from everyday purchases into an investment opportunity.

Signing up for Acorns takes just minutes: All you have to do is link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio managed by experts at leading investment firms like Vanguard and BlackRock.

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Corporate Vanguard (1); Suze Orman (2); Fidelity (3); Moneywise/ YouTube (4); CNBC (5), (6); Acorns (7)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.