How Much Will $5,000 Make You in a High-Yield Savings Account?
KEY POINTS
- The average big-bank savings account will pay you just $0.50 on your $5,000 over a year.
- Target an account paying an APY of at least 5.00%, and you'll earn more than $250 on your cash.
- Other important HYSA features include a robust banking interface, solid customer service, and FDIC insurance.
Right now is an especially great time to have cash in the bank. The reason? You can earn a much higher rate on your savings than we've seen in years. Whether you're interested in certificates of deposit, money market accounts, or high-yield savings accounts (HYSA), banks and credit unions have sweetened their APYs. It's not difficult to earn a return of 4%, 5%, or higher on your savings.
Let's take a look at how much you can expect to earn on $5,000 in a few different savings account options.
What happens to your $5,000 in a big-bank savings account?
Your first impulse might be just to open a savings account with the big bank around the corner from your home. Unfortunately, these tend to pay just 0.01% APY.
If you leave your $5,000 in a savings account paying such a low APY, not only will you barely make any money in interest, but you'll face another problem: If your interest rate isn't at least as high as the rate of inflation, your cash is actually losing value.
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 January 10, 2025. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.80%
Rate info
3.80% annual percentage yield as of January 10, 2025. 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. |
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
4.40%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 2, 2025, 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. |
4.40%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 2, 2025, 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. |
Here's what you'll make after one year with your $5,000 in an account paying the typical big-bank rate of 0.01%, along with an account paying the current average rate across all savings accounts of 0.45%:
| Starting amount | APY | Interest earned in a year |
|---|---|---|
| $5,000 | 0.01% | $0.50 |
| $5,000 | 0.45% | $22.55 |
You could maybe buy a gumball with that $0.50. And $22.55 would certainly buy you lunch. But who wouldn't want to make more money? The options to do so are out there.
How about a high-yield savings account instead?
Here are three breakdowns of your earnings after one year with $5,000 in an account with a higher APY, based on our favorite high-yield savings accounts:
| Starting amount | APY | Interest earned in a year |
|---|---|---|
| $5,000 | 5.31% | $272.66 |
| $5,000 | 5.26% | $270.02 |
| $5,000 | 5.05% | $258.97 |
According to the Consumer Price Index, the most recent inflation figure was 3.0% as of June 2024. You're handily beating that with any of the savings rates in this second table. And in terms of real money, earning more than $250 on your saved cash in a year is sweet indeed.
Other HYSA features to look for
As important as they are, it's not all about rates when you go looking for a new home for that $5,000. Here are a few other features to target:
- An easy-to-use banking interface: Opening a new high-yield savings account with an online-only bank (these tend to offer the highest APYs) is like zooming into the future. Whether you prefer to bank via mobile app or web browser, pick a bank with a clean layout and tools that are easy to find.
- Buckets: This is my favorite feature of my own HYSA -- I love being able to save for multiple goals within the same bank account. Depending on your bank, the feature might be called "pockets," "vaults," or "jars," rather than "buckets."
- Money access: You're not likely to get an ATM card with your HYSA, but you should be able to easily link a checking account to transfer money in and out when you need it.
- Decent customer service: People like to complain on the internet, but it's still worth checking out user reviews for a bank you're considering. If you see the same problem repeated in many reviews, it's probably a legitimate issue for that bank.
- FDIC insurance: Never ever do business with a bank that isn't a member of the FDIC. FDIC insurance coverage means that up to $250,000 of your money in that HYSA is safe and will be returned to you in the event of bank failure.
Ready to find a new home for your $5,000 now that you've seen how much money you can make on it with one of the best HYSAs? Go forth and conquer.
Our Research Expert
Ashley Maready changed careers from museum operations and management to writing and editing in 2021. She has a passion for teaching others about better living through improving your finances.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.