Here's How Much Interest You Can Earn on $25,000 in Savings

Got $25,000 stashed away for emergencies? That's fantastic news. Having money set aside is an excellent way to prepare financially so you can weather life's twists and turns. Now that you have money saved up, it's time to consider whether you're stashing it in the right place.

A high-yield savings account is an excellent place to keep your emergency fund. Here's why: You can earn interest while your extra cash sits in the bank and access your money without penalty if you need to spend some of it. Let's find out how much interest you can earn with $25,000 stashed in a high-yield savings account.

Maximize your earnings with a high-yield savings account

A savings account is an excellent place to keep your emergency fund. But don't assume all savings accounts are the same. Many traditional savings accounts have meager APYs. Some have APYs as low as 0.01%. At that rate, you won't earn a lot -- even with $25,000 in the bank.

However, high-yield savings accounts tend to offer higher APYs. Some of the best high-yield savings accounts are offering rates of up to 4.75%. The higher the APY, the more you can earn.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of December 27, 2024. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of December 27, 2024. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

If you've been keeping your $25,000 in your primary checking account or a traditional savings account, you're missing out on the opportunity to earn more money from interest. Now is a good time to open a high-yield savings account to earn more money from your savings fund.

Ready to earn more from your savings? To boost your earnings, consider one of our favorite high-yield savings accounts that's offering a competitive APY of more than nine times the national savings rate. Click here to learn more and open an account.

You can earn nearly $1,000 from interest with $25,000 in savings

Let's do the math and find out how much money you can earn by keeping $25,000 in a high-yield savings account. To calculate how much interest you'll earn, multiply your initial deposit ($25,000) by the account APY. This will show you how much money you'd earn if you kept the money in your bank account for one year.

For the following calculations, I used a 0.01% APY for a traditional savings account and a 3.90% APY for a high-yield savings account. These calculations assume an initial $25,000 deposit with no additional deposits made to your account:

Wow! That's an extra $725 earned by keeping your cash in a high-yield savings account.

Want to earn more? You can maximize your earnings by making regular contributions beyond your initial deposit. You can set up automatic recurring transfers so money is transferred from your checking account to your high-yield savings account regularly. By doing this, you can save time and earn more interest.

Want to earn more from your savings? Click here to explore our list of the top high-yield savings accounts to find the right fit for you.

Maximize your earning potential

Saving $25,000 is a fantastic accomplishment. Whether you've already achieved your savings goal or are well on your way, ensure you're maximizing your earning potential. Keeping your extra cash in a high-yield savings account could help you earn more interest and boost your bank account balance. Every dollar you earn from interest is a major win!