How much you can make by depositing $10,000 into a high-yield savings account? (2024)

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How much you can make by depositing $10,000 into a high-yield savings account? (2)

Saving money is crucial for your financial stability, whether it's for a rainy day, a big purchase or in case of an emergency. And one of the easiest ways to grow your savings faster is by depositing it in a high-yield savings account.

High-yield savings accounts, as the name suggests, offer much higher interest rates than traditional savings accounts. The average rate for a regular savings account is currently 0.42%, according to the FDIC. Rates for high-yield savings accounts, on the other hand, are as high as 5.05% per Bankrate. That's more than 10 times higher.

However, not all high-yield savings accounts are created equal, and finding the one with the best rate can earn you significantly more interest over time. Just how much more? Let's take a closer look.

See today's top savings rates here.

How much can you make by depositing $10,000 into a high-yield savings account?

The more money you deposit, the more interest you'll earn. If you have $10,000 to invest, here's what your earnings would be at different interest rates:

  • After one year with a regular account at 0.42%: $10,042.00
  • After one year with a high-yield account at 4.50%: $10,450.00
  • After one year with a high-yield account at 5.00%: $10,500.00

That said, you can deposit less than $10,000 and still reap the benefits of a high-yield savings account. For example, here's how much you would make by depositing $5,000 instead:

  • After one year with a regular account at 0.42%: $5,021.00
  • After one year with a high-yield account at 4.50%: $5,225.00
  • After one year with a high-yield account at 5.00%: $5,250.00

No matter how much you have to deposit, you're essentially losing out on free money if you're keeping it in a regular savings account.

Compare your savings account options online now.

Other considerations

It's important to note that savings account interest rates vary over time, and banks and credit unions are always competing for new customers. So it's worth it to check current offers occasionally to ensure your account is still delivering the best results.

Additionally, some high-yield savings accounts come with certain conditions that affect your earning potential. For example, some accounts require a minimum balance, limit the number of withdrawals you can make per month or charge monthly maintenance fees. It's important to read an account's terms and conditions before signing on the dotted line to make sure it meets your needs.

Another savings option to consider is a certificate of deposit (CD), a type of account with a fixed interest rate and a fixed term. CDs usually offer higher interest rates than high-yield savings accounts, and the rate is set when you open the account, which means it won't go down if overall interest rates drop.

That said, many CDs charge a penalty for withdrawing your funds early, so you should make sure you don't need to access your funds before the term expires.

How much can you earn? Find out by viewing current savings account offerings here.

The bottom line

Opening a high-yield savings account is an easy and effective way to boost your savings. Whether you're depositing $1,000 or $10,000, your money will grow faster in a high-yield account, and the only action you need to take is to do a little research. By choosing the account with the best rates and terms for your needs, you can ensure you're earning as much interest as possible.

How much you can make by depositing $10,000 into a high-yield savings account? (2024)


How much you can make by depositing $10,000 into a high-yield savings account? ›

How much interest can you earn on $10,000? If your savings account earns only a 0.01% annual interest rate, which is common with large banks, your earnings after a year would be $1. Put that $10,000 in a high-yield savings account that earns 5%, for the same amount of time, and you can earn more than $500.

How much will $10,000 make in a high-yield savings account? ›

Interest can compound annually, quarterly, monthly, or even daily—the more often interest compounds, the faster your balance grows. For example, say you deposited $10,000 in a high-yield savings account with a 3% APY that compounds annually. At the end of a year, you'd have $10,300.00 in your account.

How much will $5000 make in a high-yield savings account? ›

Shopping around for a top APY means you can earn 10 to 12 times more than the national average rate, which is less than half a percent. $5,000 in one of today's best high-yield savings accounts could earn as much as $136 in just six months—compared to about $11 with an average rate.

How much will $10,000 make in a money market account? ›

Currently, money market funds pay between 4.47% and 4.87% in interest. With that, you can earn between $447 to $487 in interest on $10,000 each year. Certificates of deposit (CDs). CDs are offered by financial institutions for set periods of time.

How much does a $10,000 CD make in a year? ›

Earnings on a $10,000 CD Over Different Terms
Term LengthAverage APYInterest earned on $10,000 at maturity
1 year1.81%$181
2 years1.54%$310.37
3 years1.41%$428.99
4 years1.32%$538.55
1 more row
Apr 24, 2024

Can you ever lose your money with high-yield savings account? ›

Safety: As noted, most high-yield savings accounts are either FDIC or NCUA insured for up to $250,000. Moreover, as deposit accounts, they're not susceptible to the ebbs and flows of the market, so there's little to no chance you'll lose the money you deposit into one.

How much interest can I make on $10,000? ›

How much interest can you earn on $10,000? In a savings account earning 0.01%, your balance after a year would be $10,001. Put that $10,000 in a high-yield savings account that earns 5% APY for the same amount of time, and you'll earn about $500.

Do millionaires use high-yield savings accounts? ›

Millionaires Like High-Yield Savings, but Not as Much as Other Accounts. Usually offering significantly more interest than a traditional savings account, high-yield savings accounts have blown up in popularity among everyone, including millionaires.

How long should you keep money in high-yield savings account? ›

There's no rule on the exact amount to have in your high-yield savings account. The amount of money you should store in these accounts depends on various factors. However, the general rule of thumb is that you should have liquid access to enough cash to cover between three and six months of your expenses.

Does a high-yield savings pay monthly? ›

Most high-yield savings accounts pay interest daily. That's more profitable than what most banks do; only deposit interest into your account once per month. Over the long run, daily compounding leads to more cash for you.

Can you invest $10,000 and make money? ›

Invest in individual stocks

Even with $10,000, it's possible to own a well-balanced portfolio of individual stocks. Many brokerage firms, such as Fidelity, Robinhood, and Square's (SQ 5.18%) Cash App, offer the ability to purchase fractional shares.

How should I invest my $10,000 dollars? ›

How to invest $10,000: 10 proven strategies
  1. Pay off high-interest debt.
  2. Build an emergency fund.
  3. Open a high-yield savings account.
  4. Build a CD ladder.
  5. Get your 401(k) match.
  6. Max out your IRA.
  7. Invest through a self-directed brokerage account.
  8. Invest in a REIT.
Apr 2, 2024

Which bank gives 7% interest on savings accounts? ›

As of May 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

What happens if you put $10,000 in a CD for 5 years? ›

The interest is significant and predictable

Let's say you put $10,000 into a 5-year CD with the rate discussed above – 4.75%. After the 5-year term is up you'll have earned $2,611 in interest for a total account balance of $12,611.

How much does a $50,000 CD make in a year? ›

A short-term CD could yield $2,625 per year (for a 1-year CD)
TermAPY (currentYield on $50,000
3 months5.26%$682.50
6 months5.00%$1,250
9 months5.55%$2,081
1 year4.90%$2,625
Feb 10, 2024

How much does a $20,000 CD make in a year? ›

That said, here's how much you could expect to make by depositing $20,000 into a one-year CD now, broken down by four readily available interest rates (interest compounding annually): At 6.00%: $1,200 (for a total of $21,200 after one year) At 5.75%: $1,150 (for a total of $21,150 after one year)

How much will $20,000 make in a high-yield savings account? ›

How much $20,000 earns you in a savings account
APYInterest earned in one year
3 more rows
Mar 31, 2023

How much money can you make on a high-yield savings account? ›

While the national average return on a traditional savings account is just 0.46%, in 2024, many high-yield savings accounts offer interest rates over 4% (or more). These rates can help you reach your savings goals more quickly and avoid leaving money on the table.

How much will $50,000 make in a high-yield savings account? ›

5.5% APY: Choosing a 5.5% CD or high-yield savings account will result in $2,750 in interest on your $50,000 investment annually. 5.75% APY: A 5.75% CD or high-yield savings account will earn you $2,875 in interest in one year.

What is 5% interest on $10,000? ›

You want to know your total interest payment for the entire loan. To start, you'd multiply your principal by your annual interest rate, or $10,000 × 0.05 = $500. Then, you'd multiply this value by the number of years on the loan, or $500 × 5 = $2,500.


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