Here's How Much You Can Make With $20,000 in a High-Yield Savings Account
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I still remember when my savings earned literal pennies a month. No joke, I'd log into my account and see like $0.07 of interest. Woohoo, don't spend it all at once.
That was back when my money sat in a "regular" savings account earning just 0.01% APY. Which by the way, unfortunately, is still what many big banks pay today.
But savings accounts have evolved. And if you're sitting on a chunk of cash -- say $20,000 or more -- choosing the right place to park that money can seriously pay off.
Let's break it down.
How much you can earn with a top savings account
Right now, several high-yield savings accounts are paying around 4.00% APY.
That's 400x more than the 0.01% you'll get at a sluggish legacy bank. And 10x the national average for all savings accounts, which is 0.40% APY per current FDIC data.
Here's how much $20,000 could earn in a few different types of accounts over time:
| Time | 0.01% APY (Low Yield) | 0.40% APY (National Avg.) | 4.00% APY (Top HYSA) |
|---|---|---|---|
| 6 months | $1 | $40 | $396 |
| 1 year | $2 | $80 | $800 |
| 2 years | $4 | $160 | $1,632 |
| 3 years | $6 | $241 | $2,497 |
Even at the national average 0.40% APY, you're leaving serious money on the table by not switching to a higher-yield account.
Over three years, the difference between a low-yield account and a 4.00% APY account is about $2,500 in interest. That's enough for a beach vacation, new appliances, or just a fatter emergency fund.
My favorite high-yield savings account right now is LendingClub LevelUp Savings. It's paying 4.20% APY with $250+ in monthly deposits -- a super easy way to grow your cash faster. Read our full review here to learn more.
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LendingClub LevelUp Savings
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- Competitive APY
- No fees
- Easy ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- Requires you to make monthly deposits to earn the best APY
- ACH outbound transfers limited to $10,000 per day for some accounts
- No branch access; online only
The LendingClub LevelUp Savings account has a lot to offer. At the top of the list is its high APY, though you must deposit monthly to earn the best rate. Next is zero account fees, a strong and straightforward perk. Finally, you get a free ATM card, which you can use to withdraw from thousands of ATMs nationwide. Interested? You can open an account with $0.
What if the Fed continues to cut rates?
Let's say you open a high-yield savings account today at 4.00% APY. But then the Fed continues to cut interest rates (which many economists expect in the next few months). What happens to your APY and earnings?
Well, high-yield APYs are variable, so they can (and probably will) go down over time.
But that doesn't mean you should avoid them. Even after a Fed cut, they can still pay significantly more than big-bank savings accounts.
Here's how your $20,000 might perform if savings rates dropped by different amounts:
| Time | 3.75% APY (-0.25%) | 3.50% APY (-0.50%) | 3.00% APY (-1.00%) |
|---|---|---|---|
| 6 months | $372 | $347 | $298 |
| 1 year | $750 | $700 | $600 |
| 2 years | $1,528 | $1,424 | $1,218 |
| 3 years | $2,335 | $2,174 | $1,854 |
Even after a full 1.00% rate drop, you'd still earn $600 in interest the first year.
That's $598 more than if you stuck with a 0.01% account. And let's be real -- even if rates dip slightly, it beats doing nothing!
Why it matters if you're building your savings
Not everyone has $20,000 in savings, and that's OK. But more and more savers are stacking cash intentionally, whether it's for an emergency fund, upcoming expenses, or just financial peace of mind.
And when you're working hard to build that buffer, you want a bank that helps grow your money, not one that holds it hostage earning next to nothing.
Whether you earn $2,000 in interest or just a few hundred bucks, every dollar counts.
Yes, rates might go down. Yes, APYs will fluctuate. But a high-yield savings account still beats a low-interest one by miles. Even if the Fed cuts rates tomorrow, you'll still come out way ahead.
Compare the best high-yield savings accounts and find your perfect match.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.