This Is How Much Money You Can Make With $30K in a High-Yield Savings Account
KEY POINTS
- You can earn more interest and boost your bank account balance by keeping extra savings in a high-yield savings account.
- If you keep $30,000 in a high-yield savings account for one year at 4.00% APY, you can make $1,200 in interest.
- The longer you let your savings sit in the bank, the more interest you'll earn.
Having extra money stashed away can make it easier to deal with emergencies or unexpected bills. If you have money saved up in an emergency fund, make sure you're earning interest. Keeping your extra savings in a high-yield savings is a good way to maximize the interest you earn while your money sits in the bank.
Got $30,000 saved up? I'll show you how much you can earn from interest by keeping it in a high-yield savings account for a year.
Earn more with a high-yield savings account
Many banks offer savings accounts, but they're not all equal. Banks with savings accounts that earn interest use an annual percentage yield (APY) to describe the returns a customer can expect if they keep their money in their savings account for a year.
If you have a savings account, it's essential to review the APY so you know what to expect. It's common for brick-and-mortar banks to offer low APYs for their savings accounts. Your small, local bank may offer as little as 0.01% APY. At that meager rate, you won't earn much.
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 28, 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 28, 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. |
But the good news is a high-yield savings account can be more rewarding. Many banks offer rates of 4.00% or higher for these accounts.
To calculate how much interest you'll earn, multiply your initial deposit ($30,000) by the APY your bank account offers. Doing this will show you how much you'd make if you kept your cash in the bank for a year.
For the below calculations, I used a 0.01% APY for a standard savings account and a 4.00% APY for a high-yield savings account. Many high-yield savings accounts have APYs ranging from 4.00% to 5.00%.
The below calculations assume a $30,000 deposit with no additional deposits made to your account:
| Account Type | Interest Earned After One Year |
|---|---|
| Savings account, 0.01% APY | $3.00 |
| High-yield savings account, 4.00% APY | $1,200 |
Earning $1,200 instead of $3 is a huge win.
Want to boost your savings? To achieve your savings goals faster, consider one of the top high-yield savings accounts from this curated list.
Compound interest is on your side
As you can see, you can earn a significant amount of cash by stashing $30,000 in the bank for at least a year. But you can earn even more thanks to compound interest, which is interest that you earn on interest. The longer your cash remains in your bank account, the more you'll earn.
To better illustrate how you can benefit from compound interest when you have a savings account, let's explore how much money you'll earn if you keep $30,000 in a high-yield savings account for anywhere from one to five years.
Again, the calculations below assume you make no additional contributions beyond your initial deposit. You'll earn even more if you continue to deposit additional money into your account.
Here's a breakdown of the potential earnings:
| Year | Starting Balance | Interest Earned | Ending Balance |
|---|---|---|---|
| 1 | $30,000 | $1,200 | $31,200 |
| 2 | $31,200 | $1,248 | $32,448 |
| 3 | $32,448 | $1,297.92 | $33,745.92 |
| 4 | $33,745.92 | $1,349.84 | $35,098.76 |
| 5 | $35,098.76 | $1,403.95 | $36,502.71 |
That's $6,502.71 earned in five years, assuming the APY doesn't change. Keep in mind that APYs can change over time, so your APY likely won't remain the same rate forever.
Do this to earn more interest
Saving $30,000 is a massive accomplishment; you should be proud of all your hard work. But don't miss out on an easy way to boost your savings account balance by earning interest. You can earn more money by stashing your extra cash in a high-yield savings account with a competitive APY. If you're not currently earning at a great rate, consider opening a high-yield savings account. Every extra dollar you earn makes a big difference.
Our Research Expert
Natasha is a freelance writer who specializes in personal finance, credit card, credit card rewards, and travel hacking content.
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.