This Is How Much Money You Can Make With $10K in a High-Yield Savings Account
KEY POINTS
- Opening a high-yield savings account could allow you to earn more interest from your savings.
- If you stash $10,000 in a high-yield savings account for one year at 4.10% APY, you can earn $410
- The longer the money sits in your account, the more interest you'll earn.
It's never a bad idea to prepare for the unexpected, especially regarding your finances. Having extra cash in the bank is an excellent way to plan ahead for unexpected financial concerns. For many people, $10,000 is a solid amount of money to have saved for emergencies.
If you're saving for emergencies, it's smart to keep your money in a high-yield savings account to maximize the interest you earn. Curious how much interest you can make with $10,000 stashed in the bank? Below, I'll outline how much you can earn by keeping this sum in a high-yield savings account. The amount may surprise you.
Earn more interest with a high-yield savings account
Banks that offer savings accounts that earn interest use an annual percentage yield (APY) to describe the returns one can expect if they keep their money in their savings account for a year.
It's not unusual for brick-and-mortar banks to offer low APYs for their savings accounts. Your local bank could offer as little as 0.01% APY for its savings account. It may offer slightly more. While you will earn something, it won't be much if the rate is meager.
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. |
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. |
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. |
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. |
According to the Federal Deposit Insurance Corporation (FDIC), the national average APY for a savings deposit account is currently 0.42%.
Meanwhile, a high-yield savings account could offer much more. Many online banks are currently offering rates of around 4.10% APY for these accounts. How much interest will you earn by stashing $10,000 in a high-yield savings account? Let's find out.
$10,000 in savings earns this much in interest
To calculate how much interest you'll earn, take your initial deposit ($10,000) and multiply it by the APY. Doing this will show how much money you'd earn if you keep the money in your bank account for one year.
For the following calculations, I went with a 0.45% APY (the national average at the time of writing) for a standard savings account and a 4.10% APY for a high-yield savings account. The bank accounts on our best high-yield savings accounts list have APYs ranging from 4.00% to 5.30%.
These calculations assume an initial $10,000 deposit with no additional deposits made to your account:
| Account Type | Interest Earned After One Year |
|---|---|
| Savings account, 0.45% APY | $45.00 |
| High-yield savings account, 4.10% APY | $410.00 |
That's an extra $365 earned from interest. Beyond opening a bank account with a higher APY, boosting your earnings potential takes no additional work.
Ready to maximize your savings account balance? Consider the Discover® Online Savings account which offers a competitive 3.75% APY -- more than eight times the national savings rate. Click here to learn more and open an account today.
Earn even more with compound interest
The calculations above show how much interest you can earn by keeping $10,000 in the bank for one year. But you can earn even more thanks to compound interest, which is interest that you earn on interest. The longer you keep your money in your savings account, the more you earn. As your bank account balance grows, you'll be more prepared for financial emergencies.
To illustrate the power of compound interest, here's how much money you'll make if you keep your initial $10,000 deposit in a high-yield savings account for anywhere from one to five years. Again, we'll use an APY of 4.10% for our calculations. Remember, the below calculations assume you make no additional contributions after your initial deposit.
Here's a breakdown:
| Year | Starting Balance | Interest Earned | Ending Balance |
|---|---|---|---|
| 1 | $10,000 | $410 | $10,410 |
| 2 | $10,410 | $426.81 | $10,836.81 |
| 3 | $10,836.81 | $444.31 | $11.281.12 |
| 4 | $11,281.12 | $462.53 | $11,743.65 |
| 5 | $11,743.65 | $481.49 | $12,225.14 |
That's $2,225.14 earned in five years, assuming the APY doesn't change. It's worth mentioning that APYs can change, so your APY likely won't stay the same rate forever. But even if rates change over time, maximizing the interest you earn by keeping your extra cash in an account with a higher APY is a great money move.
Maximize your earning potential
You're likely missing out on interest if you don't have a high-yield savings account. If you have a significant amount of money saved up or are working to reach a big savings goal, you may want to open a high-yield savings account to maximize how much you earn from interest. Every dollar you earn adds up and results in a higher bank account balance.
Ready to boost your savings? Click here to view our top high-yield savings accounts list to find the ideal account for you.
Our Research Expert
Natasha is a freelance writer who specializes in personal finance, credit card, credit card rewards, and travel hacking content.
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