How Much Interest $10,000 Earns in a High-Yield Savings Account
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Only about 1 in 5 Americans use a high-yield savings account (HYSA), according to a recent CNBC study. And that's a shame, because that means the other 4 in 5 Americans are missing out on easy money.
I've been writing about personal finance for years, and here's something I'll never understand: Why leave free money on the table?! If you're going to keep cash in the bank, you might as well earn something worthwhile on it.
Here's exactly how much you could make with $10,000 sitting in a top HYSA today.
How much interest $10,000 earns at 4.00% APY
Some of the top HYSAs are paying around 4.00% annual percentage yield (APY) right now.
At 4.00% APY, here's how much interest $10,000 would earn in interest:
- In one year: $400
- Per month: About $33
- Each day: About $1.10
Compare that to a traditional bank paying 0.01% APY, where $10,000 would make just $1 in an entire year. The gap is staggering.
I always tell people -- If you were walking along and saw a $1 bill on the ground, would you pick it up? Of course you would. Because it's "free money."
Well, moving your cash pile into a high-yield savings account is kind of like picking up extra money every day (except there's no bending down required -- it just collects and grows in your account). It's one of the easiest wins in personal finance.
Why online banks are better
Bigger interest checks are nice. But online banks have several other benefits that come with high-yield savings accounts:
- FDIC insurance: Just like the big banks, most online HYSAs insure your money up to $250,000.
- Easy transfers: You can usually link your checking account and move money back and forth in a day or two.
- No hidden fees: Many top HYSAs don't charge monthly maintenance fees or have account minimums. Some even waive ATM fees and overdraft charges.
- Better apps and tech: Most online banks focus on a digital-first convenience which lets users manage everything from their phone.
In short, online banks give you all the safety of a traditional bank, but with more modern features and way better returns.
One of my favorites right now is the LendingClub LevelUp Savings account. It pays 4.20% APY with $250+ in monthly deposits and even comes with a debit card linked to your savings. Read our full LendingClub LevelUp Savings 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.
When an HYSA makes sense
In my opinion, every single American should have a high-yield savings account.
Checking accounts are perfect for day-to-day banking (paying bills, payroll deposits, everyday needs, etc). But an HYSA is the perfect place to save for short-term or medium-term money goals.
Here are some examples of the money to keep inside:
- Emergency funds
- Savings for a vacation or big purchase in the next year
- Stashing a down payment while house-hunting
- Parking cash you may need soon but don't want to risk in the stock market
Even if you don't have much saved, it's still worth opening an account. For example, $1,000 in a 4.00% APY HYSA earns about $40 in a year, versus just $0.10 at a traditional big bank.
Make your money work harder today
If you're one of the 4 in 5 Americans that don't use a high-yield savings account, it's time to rethink where your money sits.
You don't need a huge amount to start -- even a few hundred dollars can begin earning meaningful interest.
The point is, you deserve more than pennies on your savings.
Check out our list of the best high-yield savings accounts and start making your money work harder today.
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.