Here's What $25K Earns in a Big Bank vs. a High-Yield Account
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If you stroll into a Bank of America branch today and put $25,000 into a basic savings account, how much interest would you make in a year? The answer: just a few bucks. Barely enough for a cup of coffee.
But deposit that same $25,000 into a top online high-yield savings account (HYSA), and suddenly you're looking at $750-$1,000 in extra interest in a year -- without lifting a finger.
Here's the math -- and why the right account makes all the difference.
Savings accounts are not created equal
Big banks like Chase, Bank of America, and Wells Fargo are still paying 0.01% APY on savings accounts. That's essentially nothing.
Meanwhile, top high-yield savings accounts today offer rates north of 4.00% APY, even as the Fed starts trimming rates.
Here's what $25,000 would earn in a year at different rates:
| APY | Interest Earned |
|---|---|
| 4.00% | $1,000 |
| 3.00% | $750 |
| 2.00% | $500 |
| 0.01% | $2.50 |
Even if high-yield rates get lowered down to 2.00% in the next year or two, that's still $500. Compare that to $2.50 from a big bank, and the difference is night and day.
A standout option right now is the LendingClub LevelUp Savings account. It currently pays 4.20% APY with $250+ in monthly deposits and even comes with a debit card linked to your savings. You can read our full LendingClub LevelUp Savings review here for all the details.
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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.
Why I park my $25K in an HYSA
I keep about $25,000 in emergency funds and short-term savings. This is the cash I'd tap if my car breaks down, a medical bill pops up, or I want to book a family trip. I need it safe, liquid, and ready to go.
That's exactly what an HYSA is built for. It's federally insured (FDIC insurance up to $250,000), so my money is protected even if the bank itself fails. At the same time, it's still earning me hundreds each year in interest.
It costs nothing extra to earn more
Another thing I love: my HYSA doesn't nickel-and-dime me. I pay no monthly fees, there's no minimum balance requirements, and no hidden charges. It's the opposite of my old big-bank account, where I felt like I was paying them just for the privilege of parking my cash there.
And the tech is better, too. The app is clean, transfers are quick, and my cash is back in my checking account within a day or two if I need it.
Bottom line
When you see the numbers side by side, it's hard to justify leaving big chunks of money in a traditional savings or checking account.
Whether you've got $25,000 or even just $1,000, high-yield savings accounts are one of the easiest wins in personal finance.
Stop earning pennies and start earning hundreds. Check out the best high-yield savings accounts today and see how much your cash could earn.
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.