This Is How Much Money You Can Make With $10K in a High-Yield Savings Account

If you have a large sum of money you're not quite sure what to do with, you're in luck. Many high-yield savings accounts are paying annual percentage yields (APYs) of 5.00% or higher right now, and there are lots of different banks to choose from.

These high rates were unheard of several years ago, but their prevalence now means you can earn significant interest on large sums of money. Here's how much $10,000 could become in just one year and why a savings account is a great choice, no matter how much money you have.

How much $10,000 becomes in one year

Putting $10,000 into a savings account with an APY of 5.00% means you could have about $10,511 just one year later. That's more than $500 of free money in just 12 months!

Not everyone has $10,000 to put in a savings account, but that doesn't mean you can't still earn impressive interest. Here are a few more examples of smaller sums earning a 5.00% rate over one year:

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 29, 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 29, 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.

• $5,000 earns about $255
• $2,500 earns about $128
• $1,000 earns about $51
• $500 earns about $25

Of course, you'd have to leave your money in the savings account and not take any of it out for your initial sum to reach these amounts.

Why high-yield savings accounts are a great option

Many people already have savings accounts, but you're missing out if you don't have one paying a high APY right now. Here are just a few of their benefits.

1. They pay a high yield

As I mentioned above, it's not difficult to find savings accounts with rates from 4.00% to 5.00%, and some are even higher. This makes it easy for your cash to grow quickly without you having to do anything. This is an example of passive income.

2. There aren't many fees

Most high-yield savings accounts don't charge fees. That's because many of them are available from online banks that don't have the same expensive overhead costs -- like running physical branches -- that brick-and-mortar banks have. But before you open an account, check for any fees, like for monthly maintenance or not maintaining a minimum balance.

3. Low or no minimum deposit amount

There are plenty of savings accounts that have a minimum deposit of $0 or just $1. This gives you the option to open a high-yield account and then fund it when you can.

4. They're safe

Just like other bank accounts, the best high-yield savings accounts are FDIC insured, up to $250,000 per depositor per bank. If, for some reason, your bank goes out of business, you're guaranteed to get your money back. Just check that your bank has this vital coverage.

5. You have easy access to your money

You can take your money out of a high-yield savings account whenever you want. This makes them a great place to keep your emergency fund without worrying about your money being tied up in investments -- or potentially losing value.

One downside to high-yield savings accounts

The only downside to high-yield savings accounts is that the interest rate isn't guaranteed. For example, if the Federal Reserve cuts interest rates later this year, your savings account APY will likely decrease to some extent.

Still, high APYs won't disappear overnight. Even if rates drop, your money in a high-yield savings account will still earn a much higher rate than it would in a traditional savings account. This means that whether you have $10,000 to put into a high-yield savings account or $100, now is a great time to open one.