Here's How Much You Can Make With $20,000 in a High-Yield Savings Account
Image source: Getty Images
There's a wide range of APYs offered from bank to bank right now. Case in point: the national average savings interest rate sits at just 0.39% APY, while some online banks near the top of the list are offering rates closer to 4.00% APY. That's a difference of more than 10x.
If you have $20,000 in savings, the amount of interest you earn over a year depends heavily on where you keep it. Here's what those different rates look like in real dollars, and how to make sure your cash is earning as much as it reasonably can.
How much $20,000 can earn in a high-yield savings account
APY stands for annual percentage yield. This is the rate that determines how much interest your savings earns over a year, including compounding.
And that number varies widely depending on where your money sits.
To put things in perspective, the national average savings rate is currently about 0.39% APY. Some big traditional banks offer way lower than that level, while other online banks are offering rates closer to 3.00%-4.00% APY.
Here's how much a $20,000 balance would earn with those range of APYs over one year:
| APY | Interest Earned |
|---|---|
| 0.39% (national average) | $78 |
| 3.00% | $600 |
| 3.50% | $700 |
| 4.00% | $800 |
That spread is why it's always worth comparing APYs across different banks before deciding where your savings should live.
Even a small bump in APY can noticeably increase what your savings earns over time.
This is exactly why it helps to revisit your savings account from time to time. One of my top recommendations right now (and the account I use personally!) is the LendingClub LevelUp Savings account. It's worth a closer look if you want your cash earning more while staying easy to access.
2026 Award Winner
LendingClub LevelUp Savings
On LendingClub's Secure Website.
= Best
= Excellent
= Good
= Fair
= Poor
= Best
= Excellent
= Good
= Fair
= PoorOn LendingClub's Secure Website.
- 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.
Why savings rates differ so much between banks
Most people assume savings rates are pretty similar from bank to bank. In reality, the differences can be massive, even for accounts that look identical on the surface.
The difference mostly comes down to business structure. Online banks don't have physical branches to maintain, and more modern tech that makes their business more efficient. This frees up money they can pass back to customers through higher APYs. Many also use promotional rates to attract new deposits.
Rates can also change quickly. As competition shifts and broader interest-rate trends change, banks adjust their offers. An account paying well today may not stay near the top forever, which is why flexibility matters.
Keeping an eye on rates helps ensure your savings doesn't quietly fall behind.
Benefits on an online high-yield savings account
High-yield savings accounts are pretty much like regular savings accounts, except they pay a much higher interest rate. Aside from the high APY, here are a few common features offered by online banks these days:
- FDIC insurance up to $250,000 per depositor, per bank
- No monthly fees or balance minimums
- Easy transfers to and from checking accounts
- Slick mobile apps that make managing savings easy
All this makes high-yield savings accounts the best place for emergency funds, short-term goals, and cash you want available while still earning competitive interest.
Even as rates ease, a high-yield savings account can still turn $20,000 into $600-$800 a year with very little effort.
If you've already done the hard work of building your savings, the next step is making sure it's parked somewhere that rewards you for it.
Explore our full list of top savings accounts and find a better home for your cash.
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.