How much will $10,000 make in a high-yield savings account?
The amount you earn depends on the annual percentage yield (APY) of your savings account. The higher the APY, the more money you can make.
According to data from the FDIC, the average savings account earns 0.46% APY. Currently, however, the best high-yield savings accounts offer APYs of around 5.00%. If you deposit $10,000 into one of these high-yield savings accounts, you’ll earn $500 in interest in a year.
If you continue to earn 5.00% APY for a second year, you would make another $500 on your original deposit, plus an extra $25 on the interest you earned in the first year.
You can see how much you’d earn in a year on a $10,000 deposit at various APYs in the table below.
Earnings on $10,000 in a high-yield savings account after one year
| APY | Interest earned annually on $10,000 | Total ending balance |
|---|---|---|
| 0.46% | $46.10 | $10,046.10 |
| 4.25% | $425.00 | $10,425.00 |
| 4.50% | $450.00 | $10,450.00 |
| 5.00% | $500.00 | $10,500.00 |
| 5.25% | $525.00 | $10,525.00 |
| 5.50% | $500.00 | $10,550.00 |
The calculations shown are just a simple example. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.
The calculations in the table above assume:
- There are no account fees
- The interest rate is fixed for the term
- Interest is compounded annually
- You make no deposits or withdrawals during the 12-month period
How much can I earn with our top banks?
While many banks offer high-yield savings accounts, interest rates can vary. The table below shows how much you can earn with our top savings accounts and highlights how even a small difference in APY can impact your savings balance.
Earnings after one year on $10,000 with our top picks for the best savings accounts
| Bank | APY | Interest earned annually on $10,000 | Total ending balance |
|---|---|---|---|
| National average | 0.46% | $46.10 | $10.046.10 |
| Barclays | 4.20% | $444.57 | $10,444.57 |
| Continental Bank | 4.41% | $450.84 | $10,450.84 |
| Quontic Bank | 4.50% | $460.25 | $10,460.25 |
| RBMAX | 5.05% | $517.93 | $10,517.93 |
| Cloudbank 24/7 | 5.19% | $531.53 | $10,531.53 |
| Western Alliance | 5.20% | $536.77 | $10,536.77 |
| CIT Bank | 5.00% | $511.62 | $10,511.62 |
| American Express | 4.25% | $433.38 | $10,433.38 |
| SoFi | 4.50% | $459.40 | $10,459.40 |
| Chase | 0.01% | $1.00 | $10,001.00 |
APYs are correct as of September 2024 and may vary by location. The calculations shown are just a simple example. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.
The calculations in the table above assume:
- There are no account fees
- The interest rate is fixed for the term
- Interest is compounded annually
- You make no deposits or withdrawals during the 12-month period
How much could I earn by 65 with $10,000 in a high-yield savings account?
While the table above shows the exciting growth you can expect when you deposit $10,000 in a high-yield account for a year, the growth is maximized when your money remains longer. Each time the interest is compounded, the account balance earning interest increases. As a result, you earn even more interest year after year.
If you put $10,000 into a high-yield savings account with a 5.00% APY at age 20, you could earn nearly $80,000 in interest by the time you reach 65.
See how your savings will grow over time based on the age at which you begin saving in the table below.
Earnings over time on a $10,000 deposit with a 5.00% APY
| Starting age | Years to 65 | Interest earned | Total ending balance |
|---|---|---|---|
| 20 | 45 | $79,850.08 | $89,850.08 |
| 25 | 40 | $60,399.89 | $70,399.89 |
| 30 | 35 | $45,160.15 | $55,160.15 |
| 35 | 30 | $33,219.42 | $43,219.42 |
| 40 | 25 | $23,863.55 | $33,863.55 |
| 45 | 20 | $16,532.98 | $26,532.98 |
| 50 | 15 | $10,789.28 | $20,789.28 |
| 55 | 10 | $6,288.95 | $16,288.95 |
| 60 | 5 | $2,762.82 | $12,762.82 |
The calculations shown are just a simple example. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.
The calculations in the table above assume:
- The APY is fixed at 4.50% and does not change
- Interest is compounded annually
- You make no additional deposits nor withdrawals
- There are no account fees
To further explore your potential earnings over time, try using our savings calculator.
How to maximize saving $10,000 in a high-yield savings account
The interest rate on your high-yield account directly affects your earnings, but it’s only one of several factors.
Here are some other ways to maximize your earnings.
Compound interest
While comparing the high APY savings account terms, focus on how frequently interest compounds. Typically, interest on a savings account compounds monthly or quarterly but can also compound daily, annually or at another interval.
A savings account that compounds interest more frequently is advantageous. For example, when interest compounds monthly, the accrued interest is deposited into your account monthly. You will then earn interest on the previous month’s balance and interest each month. On the other hand, with annual compound interest, you will not get an interest deposit for 12 months.
Low or no fees
Another factor that’s easy to overlook is bank fees. While some high-yield savings accounts have no account fees, others charge a monthly or annual fee. An account fee is deducted directly from your savings account balance. While interest is deposited, account fee deductions could result in a net loss if you have a smaller balance. Even when the net result is positive, account fees detract from the power of compound interest and stunt growth.
When comparing account terms for HYSAs, focus on the amount of the fees and how frequently they are assessed. Weigh the cost of the fees against the APY. While interest rates fluctuate, the highest rate is not always the best option.
Automatic payments
Most banks allow you to set up automatic deposits, which can maximize earnings over time. The alternative is to make manual deposits, which often leads to less frequent and missed deposits. Your regular, automated deposits directly and consistently increase your account balance. As a result, your accrued interest also increases regularly.
Automated deposits also enhance the power of compound interest. The additional interest you make with regular deposits generates its interest over the months and years.
Alternatives to high-yield savings accounts
You can earn a higher return on your funds through various other investments. However, many people also keep at least some money in a savings account. A savings account provides easy access to funds, making it well-suited for a rainy day or emergency fund. In addition, higher-yield investments, such as stocks and mutual funds, generally have some risk of loss. The money in a high-yield savings account is FDIC-insured. In fact, up to $250,000 per account and per account holder is protected by the FDIC. This means that there is little risk of loss with a HYSA.
However, the FDIC also insures a few other types of accounts. CDs and money market accounts are often considered alternatives to high-yield savings accounts, but how do they compare?
CDs
You can purchase a CD, or certificate of deposit, through most banks. A CD has a fixed term, ranging from a few months to five or 10 years. You can pull your money out of a CD before the end of the term, but this will cost you money. The early withdrawal penalty varies from bank to bank, but it can erase a large chunk of the interest accrued up to that point.
The interest rate on a CD is relatively low compared to a regular savings account, but it is still considerably higher than the interest on a regular savings account. The average APY on a 5-year CD is 1.43%.
With a lower yield, why would you choose a CD over a high-yield savings account? Because a penalty is associated with cashing in a CD, you may be more likely to leave your CD untouched until the term ends. If you tend to pull money out of your savings account often, a CD could discourage you from doing that.
Money market accounts
Like a high-yield savings account, a money market account has no withdrawal penalty. It also doesn’t have a limit on the number of withdrawals you can make in a month. In fact, a money market account also comes with a debit card and allows you to write checks. This makes your money more accessible in a money market account than a high-yield savings account.
The average APY for a money market account is 0.66%. You can earn substantially more interest in a high-yield savings account. However, a money market account allows you to earn interest on funds you need access to more frequently without limiting your access to a small number of transactions.
