I Write About APYs for a Living. Here's How I Earned $798 in Interest Last Year
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Most people scroll right past APYs when they see them. After all, what's the difference between 0.01% and 4.00%? They're both just tiny percentages.
But when you do the math in dollars, it hits differently. It's the difference between earning $1 or $400 on the same $10,000. That gap is massive.
I know this because I track APYs and write about banks for a living. I keep my savings in the highest-yield account I can find -- and last year, it paid me $798 in interest. This year, I'm on track to top $1,000.
Here's what you need to know about APYs and how they can boost your savings.
What APY really means
APY stands for annual percentage yield. It's the official way banks show how much interest you'll earn on deposits over a year, factoring in compounding (that's when your interest earns interest, too).
For example, if you put $10,000 in a bank that pays 0.01% APY (what many big banks offer for checking or savings accounts), you'd earn one single dollar after 12 months.
Meanwhile, at 4.00% APY, the same $10,000 earns about $400 in a year.
That's why APY matters with your savings account. It's the difference between a free coffee and a free vacation.
Top APYs right now and how much you can earn
Banks adjust APYs all the time based on Federal Reserve policy, internal goals, and a bunch of other economic factors.
Right now, a good rate is around 3.80%-4.00% APY for high-yield savings accounts (HYSAs). Some banks go a little higher, offering promos for new customers or incentives for setting up direct deposit.
Here's a quick snapshot of what you could earn with different balances in an account yielding 4.00% APY after one year:
| Balance | Interest Earned |
|---|---|
| $500 | $20.00 |
| $1,000 | $40.00 |
| $5,000 | $200.00 |
| $20,000 | $800.00 |
| $50,000 | $2,000.00 |
Personally I keep between $20,000 and $25,000 in my HYSA for emergencies and short-term savings. Right now I'm earning around ~$80 per month in interest.
This is why I always say that switching banks is one of the easiest wins in personal finance. You don't have to change your habits. Just change where your money sits.
Western Alliance Bank is a great option to check out. Right now, it's offering a top-notch 4.30% APY on its high-yield savings account with just $500 required to open the account. Click below to open an account today.
Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website.
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- Competitive APY
- No monthly account fee
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured
- Can open an individual or joint account
- Deposits and withdrawals can only be conducted via ACH transfer to/from an external bank account (limit to one linked account)
- No ATM access
- No wire transfers (inbound and outbound)
- No branch access; online only
Western Alliance Bank offers a higher APY than most high-yield savings accounts. Plus, it's FDIC insured; therefore, deposits are perfectly safe up to applicable legal limits. The main drawback is that accounts don't have many features. For example, you can only deposit and withdraw funds via ACH transfer to/from an external bank account. This account is solid for those who want a sky-high APY, but don't mind a bare-bones banking experience.
The annual percentage yield (APY) is accurate as of July 29, 2025 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.
What to look for when choosing a new bank
APY is the headline, but it's not the whole story.
I review a lot of banks. And here's what I look for beyond just paying a high yield:
- Fees: Make sure there are no monthly maintenance or minimum balance fees.
- Easy transfers: You'll want fast, free transfers between your checking and savings accounts. ACH transfers are most common with online banks, which generally take one to two days for money to move.
- FDIC insurance: Check your bank is insured up to the standard $250,000 per depositor.
- Mobile experience: A clean mobile app with transfer capabilities just makes life easier.
- Reputation: Established online banks tend to be reliable, while some new names may offer flashy rates but clunky service.
For me, I have accounts open with three to four different banks (I'm a finance nerd). But most people only need one main bank for their daily checking activities, and one online bank for a top-paying APY on a high-yield savings account.
If you're ready to start making your money work harder, the first step is simple: open an HYSA with a competitive APY and let compound interest do the heavy lifting.
My $798 in interest last year was effortless. And I'm planning to ride these high APYs as long as they're around.
Compare our top picks for high-yield savings accounts and start saving smarter today.
Our Research Expert
Joel is a full-time Personal Finance Writer at Motley Fool Money, known for his clear, approachable voice on topics like credit cards, savings hacks, and side hustles. He’s been writing about money since 2018 and previously managed editorial content for the How To Money podcast.