Move $5,000 Into a High-Yield Savings Account and Here's What Happens

Published on Dec. 3, 2025

Joel O'Leary

By: Joel O'Leary

Full-Time Personal Finance Writer

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. APY = Annual Percentage Yield.

A few months ago, one of my friends opened a high-yield savings account paying around 4.00% APY. It's only been a few months but so far she's earned over $100 in interest -- without changing her budget, habits, or lifestyle. Just free money for parking her cash in a smarter account.

Let's say you've got $5,000 in savings. Here's what happens when you move it into a high-yield savings account today.

Earning interest at 4.00% APY

Many of the best high-yield savings accounts right now hover around the 4.00% APY mark. Rates are variable and will shift over time -- but this is today's realistic snapshot.

At 4.00% APY, a $5,000 balance grows roughly like this:

  • One year: About $200 in interest
  • Monthly: Around $16-$17
  • Every day: About $0.55

Now compare that to a traditional bank paying 0.01% APY on savings accounts. Your same $5,000 would earn… $0.50 for the entire year.

You can literally earn more in one day with a high-yield savings account than in a full year at many brick-and-mortar banks. Wild.

Why high-yield savings outperforms traditional banks

High interest rates are the headline features of HYSAs. But most online banks come with a bunch of perks that make them even more attractive:

  • No or low fees: Most online banks ditch monthly maintenance fees and balance requirements. Some even reimburse ATM fees.
  • Better digital tools: Clean apps, real-time notifications, and dashboards that make saving feel effortless.
  • Quick transfers: You can move money to or from checking in one to two business days.
  • FDIC insurance: Up to $250,000 per depositor -- typically the same protection big banks have.

Just because many HYSAs operate online doesn't mean you sacrifice safety or convenience. You get the same coverage as a national bank, plus modern tech and much higher earnings.

A standout option right now is SoFi Checking and Savings (Member FDIC). One streamlined app, strong annual percentage yield (APY), and no account fees. Read our full review to learn more.

Rates as of Dec 03, 2025
Limited-Time Offer

SoFi Checking and Savings

Open Account for SoFi Checking and Savings

On SoFi's Secure Website.

Member FDIC.
4.90/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
4.90/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Open Account for SoFi Checking and Savings

On SoFi's Secure Website.

Limited-time offer:
Earn up to $300 and +0.70% Boost on Savings APY with direct deposit. Terms apply. Circle with letter I in it. Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking & Savings account and enroll in SoFi Plus by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
APY
up to 4.30% Rate info Circle with letter I in it. Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking & Savings account and enroll in SoFi Plus by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
Min. To Earn APY
$0
  • Competitive APY on both Savings and Checking
  • No monthly account fee
  • Welcome bonus up to $300 (direct deposit required)
  • ATM access
  • Unlimited number of external transfers (up to daily transaction limits)
  • FDIC insured (up to $3M with opt-in to SoFi Insured Deposit Program)
  • Early access to direct deposits
  • Tools to help you track savings goals
  • Combo account only; no stand-alone savings or checking
  • Maximum Savings APY requires direct deposit
  • No branch access; online only
  • Overdraft protection requires monthly direct deposit minimum

For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, new customers earn a bonus of up to $300 with eligible direct deposit. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.

Open a SoFi Checking and Savings Account

Read Full Review

When an HYSA is the right move

Checking accounts are perfect for day-to-day spending. But for short-term and near-future goals, an HYSA is usually the smarter home for your cash.

It works especially well for:

  • Building emergency funds
  • Saving for an upcoming trip
  • Setting aside money for a big purchase
  • Parking any money you might need soon but don't want in the stock market

If you want to lock in a rate for a fixed amount of time, certificates of deposit (CDs) are another solid option. Some of today's best CDs also offer rates above 4.00% APY.

How much interest will your bank pay in 2026?

If you've got $5,000 (or more) and it's currently earning pennies, it's worth rethinking where you keep it.

A high-yield savings account lets your money work harder -- with zero extra effort, zero risk, and zero complexity.

Take a look at our roundup of today's best high-yield savings accounts, because your savings deserve more than pocket change.

Our Research Expert

Joel O'Leary
Joel O'Leary icon-button-linkedin-2x

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.