If You Put $10,000 in a High-Yield Savings Account One Year Ago, Here's How Much You'd Have Today

The whole notion of "passive income" is a fraught one, because in most cases, you must have money to start with to generate more without the effort of working for it. The ways to truly earn money while you sleep are through investing in stocks, bonds, certificates of deposit, and savings accounts.

High-yield savings accounts (HYSAs) in particular are great for earning passive income -- they are accessible to anyone and require no expertise to profit. According to research from The Motley Fool Motley Fool Money, just 34% of us have a savings account paying more than 4.00% APY -- and millennials (my generation), are most likely to have one.

Don't feel bad if you didn't realize you could earn this much from a simple savings account -- all that matters is that you know it now and can act. Let's engage in a little thought experiment and some fun math. If you'd opened a HYSA a year ago, here's a look at how much money you could've earned on a balance of $10,000.

How much interest did you earn?

Let's take a trip into the distant past (OK, not so distant) to explore bank account options. In July 2023, the highest-paying savings account on Motley Fool Money's radar was paying 4.95% APY, and today that same account is paying 5.00% APY, so that's not such a huge jump.

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 9, 2025. 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 January 9, 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. 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 4.40% 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. Member FDIC.	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.

According to the FDIC, the average interest rate on a savings account was 0.42% at that time; right now, it's 0.45%. So while rates have gone up slightly across the board, it's not likely that your savings' rate over a year would have swung wildly.

Now that we know there wasn't a huge difference in rates over the last year, we can look at a few real numbers.

Here's a table showing how much you would have made over the last year in accounts paying a few common average APYs on the best HYSAs right now, along with that current average rate. Oh, and just for fun, the money you could've expected to earn on a savings account with a traditional brick-and-mortar bank:

So depending on your bank's rate, you had the opportunity to earn anywhere from a buck on your $10,000 all the way up to more than $500. Which sounds better to you?

It's not too late to get a great rate

It feels to me as if the last year just flew by, and you might be kicking yourself now that you've learned you missed out on a decent amount of interest. Don't -- it's not productive to regret the past, it's better to put your energy into improving the future. And thankfully, you're not out of luck for opening a great HYSA.

The federal funds rate is still higher than it's been in a while (but cuts are surely on the horizon), and as of this writing, you can still find HYSAs paying greater than 4.00% APY. Ride the higher interest train as long as you can, and put that $10,000 to work for you.