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Here’s How Much Interest $10K, $50K, or $100K Can Earn You in a High-Yield Savings Account

Unlock the power of compounding with staggering returns on your savings.

By Michelle Smith

Edited by Eric McWhinnie

Updated Dec. 17, 2024

Banks do far more than serve as a repository for your hard-earned cash. Depending on the bank, they can do quite a bit more — starting with helping you grow your wealth.

Whether you’re searching for a new bank with better benefits or curious to know how much you could make by leaving your cash untouched in a high-interest account, keep reading.

We’ll show you exactly how much your savings can earn at the right bank with the right interest rate.

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$10,000 in a big bank earning almost nothing

Interest earned in one year at a rate of 0.01%: $1

For better or worse, big banks typically don’t have to jockey for new customers. The name recognition alone of a national bank is enough of a draw that big banks don’t have much incentive to offer competitive perks like high-yield savings accounts.

As a result, many big banks offer interest rates as low as 0.01%. If you have $10,000 in savings, you’ll earn $1 a year (based on a simple interest calculation, not compounding interest).

Worse, many big banks charge a monthly or yearly savings account maintenance fee — so storing your savings in a low-interest savings account with a big bank could lose you money.

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$10,000 in a bank earning the national average rate

Interest earned in one year at the current national average rate of 0.46%: $46

The Federal Deposit Insurance Corporation (FDIC) is the independent federal agency that backs bank account deposits and oversees banks and credit unions.

The FDIC also calculates monthly interest rate caps for banking products, which include savings accounts, money market accounts, certificates of deposit (CDs), and interest checking accounts.

For March 2024, the FDIC monthly rate cap for savings accounts is 0.46%. If you deposit $10,000 in an account with that interest rate, you’ll earn $46 in one year.

Again, this is a simple interest calculation. If your savings account earns compound interest (and most do), your interest also earns interest. Whether your interest compounds monthly, quarterly, semi-annually, or annually impacts the amount of interest you’ll earn.

$10,000 in a competitive high-yield savings account

Interest earned in one year at the competitive rate of 4.00%: $400

Many non-traditional, new, or online banks use high-yield savings (and even checking) accounts to get new customers interested in their banking services.

While 4.00% is considered a competitive rate — especially compared to almost comically low big-bank rates — it’s entirely possible to find high-yield savings accounts with even higher rates.

Of course, you should carefully vet banking options to ensure you choose the best bank for you, not just the bank with the highest interest rate.

If you open a high-interest savings account with a rate of 4.00%, deposit $10,000, and don’t touch that money for an entire year, you’ll earn $400 worth of simple interest on your principal deposit (about $408 if compounded daily).

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Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.25% (as of 11/15/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

$50,000 in a big bank earning almost nothing

Interest earned in one year at a rate of 0.01%: $5

Earning $5 on a deposit of $50,000 is better than earning either nothing or $1 … but not by much, especially if you’re paying a monthly service fee just to keep the account.

$50,000 in a bank earning the national average rate

Interest earned in one year at the current national average rate of 0.46%: $230

There’s more than one reason to leave your savings untouched for as long as possible, but one is definitely that the more money you’re able to deposit, the higher your return will be.

At a fixed rate of 0.46%, you could earn $230 in one year or over $1,000 in five years with practically no effort required.

$50,000 in a competitive high-yield savings account

Interest earned in one year at the competitive rate of 4.00%: $2,000

Yes, you read that right. Depositing $50,000 into a low-interest savings account earns you around $5 — but depositing that same amount into a high-yield account with a different bank nets you $2,000 in simple interest alone (about $2,040 if compounded daily).

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$100,000 in a big bank earning almost nothing

Interest earned in one year at a rate of 0.01%: $10

The $10 of interest you earn by depositing $100,000 with a big bank demonstrates that it isn’t necessarily the amount of money you save that counts — it’s where and how you store that money.

And if increasing your saving ability is one of the main things you look for in a bank, just know that you’ll rarely find it with a big bank’s savings account.

$100,000 in a bank earning the national average rate

Interest earned in one year at the current national average rate of 0.46%: $460

$460 isn’t the highest amount you could earn on a $100,000 savings deposit, but it’s a respectable amount to earn over a year (especially compared to $10).

If your current bank or credit union offers interest rates around the national average and has a series of other perks for long-term customers, sticking with that bank might be a wise choice for your financial future.

$100,000 in a competitive high-yield savings account

Interest earned in one year at the competitive rate of 4.00%: $4,000

$4,000 (about $4,080 if compounded daily) is an incredible amount to gain by doing nothing more than depositing cash into an account.

That's precisely why looking into a high-yield savings account with a non-traditional bank could be the smartest move you make to boost your retirement savings.

Earn up to a $300 bonus and grow your money with up to 4.00% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 4.00% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account or overdraft fees⁵ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $2 million on deposits is available through a seamless network of participating banks.⁶ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a> Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a>

Open your SoFi account and set up direct deposit

Bottom line

There are benefits to banking with a big bank, but a high interest rate on your savings account isn’t one of them.

No matter how much money you have in savings, it’s worth looking at different high-interest account options and seeing if you can make a little extra cash.

With the right interest rate, you can boost your bank account without spending a cent.

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