Here’s How Much Interest Can You Earn on $10,000 in Savings

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The amount of interest you can earn depends on the rates your savings account offers — but it can add up if you have a high-yield savings account. Here’s how. 

Putting money in a savings account allows you to have funds available for emergencies or to save for short-term purchases. You can also earn interest when you invest your money in a savings account, though.

Let’s say you have a pretty good balance — around $10,000 — in your savings account. Here’s how much you might earn with this much cash in savings.

Here’s what your returns on a $10,000 balance could look like

If you have $10,000 in savings, the amount of interest you can earn on that balance is going to depend on the annual percentage yield (APY) your savings account pays. The FDIC reports that the national average interest rate on savings accounts is 0.46% as of mid-December 2023. However, if you have a high-yield savings account, you could earn up to 5.30% APY.

The table below shows the amount of interest you could earn over time both if you had an account at a bank paying the national average rate and if you found a competitive high-yield savings account paying 5.30%, assuming interest is compounded annually.

As you can see, you can earn a pretty substantial amount of interest — especially over a long time period — but you’ll need to find the right bank account in order to make that happen. You should also know that savings account APYs aren’t fixed — they change over time. If rates go down in 2024, as many people expect they will in the new year, you may not get that 5.30% APY. But the rates on a high-yield savings account are always going to be higher than the national average rate.

Take the time to find the right savings account to maximize your interest

When you put your money into a savings account, your potential returns are always going to be more limited than if you invested in a brokerage account and put your money into the stock market. That’s because you are not taking on any risk of loss, up to FDIC insurance limits, as long as your account is FDIC insured.

That doesn’t mean the account you pick doesn’t matter, though. A high-yield savings account should provide the same safe place to put your money as a savings account paying a much lower APY does, as long as you make sure that your account has FDIC coverage. And, like a savings account paying a much lower rate, your money should still be accessible, so you can withdraw it whenever you want.

The big difference, though, is that the high-yield account is going to give you the chance to earn a lot more interest. You can earn more in a single year than you would after a decade if you find an account paying 5.30% instead of 0.46%. Of course, you will want to consider factors like customer service, fees, and the process of transferring funds — but plenty of great accounts offering impressive yields also excel in other aspects of the customer experience.

The more money you have in savings, the more it matters that you find the right account — but even if you have much less than $10,000 set aside, it’s worth taking the time to try to maximize your returns. That’s especially true as you have a lot to gain and nothing to lose if you just take the time to look for an account offering the most competitive rates.

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