Menu x
open search articles form x
Advertiser and Editorial Disclosures
News & Trending Banking News

If You Have More Than $25,000 in One Account, Check This Number

One check can show whether $25,000 is earning about $1,000 a year or quietly missing the chance.

wife and husband family doing paperwork
Laura Hohenstein
Melinda Sineriz, ABFP®
By Laura Hohenstein , Edited by Melinda Sineriz, ABFP®
Updated Oct. 14, 2026
Fact check checkmark icon Fact checked
Google Logo Add Us On Google info

Quick Read

  • $25,000 at 4.00% annual percentage yield (APY) earns about $1,000 over one year, or roughly $83 a month.
  • The same $25,000 in an account paying 0.50% APY earns around $125 over one year, or roughly $10 a month.
  • That leaves an $875 gap in one year on money that could still be suitable for a savings account.
  • At the national average savings rate of 0.38% (as of 06/15/26), $20,000 earns $76 a year. The same balance could earn up to nine times more with a SoFi Checking and Savings account. See SoFi®'s current rate.

If you've got more than $25,000 sitting in one familiar account, it's easy to treat the balance as the main thing to watch. The balance matters, of course, but the rate tied to that balance could be doing more work than you think.

The number to check is your annual percentage yield (APY). You'll usually find it in your account details, your statement, a rate information page, or the account documents you received when the account opened.

Once you know your APY, you don't have to guess whether moving some savings is worth the hassle. You can estimate the dollars, sort which cash should stay put, and decide whether a high-yield savings account deserves a closer look.

$20,000 earning nothing could mean $73 a month, gone. Move it to SoFi and earn up to 4.40% APY on Savings (3.30% APY1 with +1.10% APY Boost) for up to 6 months2.

Your APY does the heavy lifting

Annual percentage yield is the cleaner number to use when you're comparing savings accounts because it reflects the account's yearly return with compounding included. The interest rate alone tells you less, because it doesn't always show the effect of interest earning interest.

Look for the APY tied to the account where your cash actually sits. If your bank shows multiple tiers, check the APY for your full balance, not the biggest rate on the page. A splashy rate that applies only to a slice of your money is less useful than a lower rate that applies to every dollar.

Turn the rate into dollars

The reason APY gets interesting above $25,000 is simple: small rate differences turn into real money. Say you find a high-yield savings account paying 4.00% APY, which is achievable in the current high-yield savings market. On $25,000 for one year, simple interest is about $1,000 before taxes.

$25,000 x 0.04 = $1,000

That shortcut is good enough for a quick gut check. Take your own savings account balance, multiply it by the APY as a decimal, and you'll have a rough one-year interest estimate. For example, $30,000 at 4.00% APY is about $1,200 over one year.

Use the estimate to see whether the money you're already holding could be working harder without locking it up.

We did the research for you. Having your checking and savings accounts with the same financial institution can make money management a lot simpler. SoFi® was our 2026 award winner for Best Checking and Savings Combo because it delivers on interest and additional features. For example, you could earn up to 4.40% APY on your savings balance with direct deposit. (3.30% APY1 with +1.10% APY Boost) for up to 6 months on new accounts.2 SoFi also offers more special features than any other account combo we looked at: No account fees: No overdraft fees.3 No minimum balance fees. No monthly fees.4 Get paid up to two days early: Feel the magic of payday up to two days earlier — automatically — when you set up direct deposit.5 Access additional FDIC insurance up to $3M: Typically, single-member deposit accounts are federally insured up to $250,000. With SoFi, FDIC insurance up to $3 million on deposits is available through a seamless network of participating banks.6

Open an account with SoFi here.

Don't compare the wrong number

Last month's interest deposit can look like the answer, but it's a messy number. The deposit can change because your balance changed, the month had a different number of days, or a deposit posted halfway through the cycle. APY gives you the cleaner comparison.

Write down three numbers before you compare accounts:

  • Your current account balance.
  • Your current APY.
  • The part of the balance that is truly savings.

The part that's truly savings matters. If $25,000 is in the account but $4,000 is rent, utilities, and autopays due in the next two weeks, then $21,000 is the more honest savings number. And before you get excited about any higher APY, check whether the rate applies to the full balance or only to a tier.

Some cash should stay put

A high-yield savings account is usually a better fit for money you want safe, separate, and reachable. Emergency savings often belongs there, and so do short-term goals like a car repair fund, holiday spending money, or a vacation fund you could use within the next year or two.

Some cash belongs somewhere more boring. Sort your account this way:

  • Same-month bills, such as rent, mortgage payments, utilities, insurance, and autopays, should stay where payment access is simple.
  • Emergency savings often fits well in high-yield savings if you've got a clear plan for reaching the money.
  • Near-term goals fit when safety matters more than a higher-risk return.
  • Money tied to a closing, tax bill, tuition payment, or scheduled purchase needs extra care because timing matters.
  • Money you won't need for five years or more could deserve a broader investing conversation.

That sorting step keeps the APY check from turning into a scramble. You're looking for suitable savings, not money already spoken for.

Your money is already saved. Now see how it could be earning you hundreds per year.

The move has real friction

Moving money between institutions isn't always instant. ACH payments can be processed on the same business day, scheduled for the following day, or scheduled up to two business days out for ACH credits, so high-yield savings works best when you've thought through access before an emergency happens. If you might need cash the same day, keep some money in the account connected to your debit card, bill pay, or local cash access.

Check the other practical details before you move a dollar:

  • Transfer timing between your current account and the new savings account.
  • Whether you're comfortable with the account's online or phone access.
  • Any minimum opening deposit.
  • Any minimum balance needed to earn the stated APY.
  • Any monthly charge that would eat into the benefit.
  • Whether customer support hours fit how you'd handle an urgent problem.

Deposit insurance is another piece of the friction puzzle. FDIC insurance generally covers bank deposits up to $250,000 per depositor, per FDIC-insured bank, per ownership category. NCUA share insurance generally covers up to $250,000 per share owner, per insured credit union, for each account ownership category. Because those limits are about ownership and institution, very large balances are worth setting up deliberately.

Rates move. A high-yield savings rate is variable, so a 4.00% APY today might be lower later. That's a real tradeoff, but it cuts both ways: a lower current APY in your existing account can also change, and the useful move is checking the number again every so often.

The biggest APY can mislead

APY is the first number to check, but it shouldn't be the only number you trust. A high displayed APY can be less useful if the account makes your cash awkward to reach or if the rate applies only under conditions you won't meet.

Before you compare two high-yield savings accounts, check:

  • Full-balance APY.
  • Minimum opening deposit.
  • Minimum balance to earn the APY.
  • Monthly charges.
  • Transfer access.
  • Withdrawal options.
  • Customer support availability.

The more your savings is for emergencies, the more access matters. A slightly lower APY with terms you understand can be more useful than a higher APY surrounded by hoops.

Saving for a down payment, a wedding, or next April's tax bill? That money could be earning up to 4.40% APY for up to 6 months while it sits.2

Bottom line

If you have more than $25,000 in one account, check the APY before you decide the money is fine where it is. The math is too large to ignore: $25,000 at 4.00% APY earns about $1,000 over one year, while cash earning almost nothing gives up most of that opportunity.

Start with the APY, turn the rate into dollars, and separate savings from money already committed to bills or near-term payments. Then move only the cash that fits the job of a high-yield savings account: safe, accessible savings that deserves to earn more.

Would You Spend Ten Minutes for $1,465?

That's roughly the year's difference on $40,000 between the national average and the up-to-4.00% rates available now. And ten minutes isn't a figure of speech. You just provide some information, like your name, address, Social Security number, and the account your deposit money's coming from. But rates are variable and follow the market, which is why the only number worth acting on is today's. Compare the current top accounts here.

Bank/Institution APY info Open Account Bonus Offer
Financebuzz awards badge
AWARD WINNER Best Checking and Savings Combo
SoFi Checking and Savings
5.0
info
4.40
% APY
With $0 min. balance2
Learn More
on SoFi's secure website
Member FDIC
Limited-Time Offer: +1.10% boost on Savings APY to up to 4.40% for up to 6 months on new accounts2 + $50 or $400 Bonus with direct deposit.1 Terms apply.

Limited-Time Offer
Financebuzz awards badge
2026 AWARD WINNER Best Checking and Savings Combo
SoFi Checking and Savings
5.0
info
Open Account on SoFi's secure website, Member FDIC
APY
4.40% info
Minimum Balance for APY
$0
Bonus Offer
Up to $400 info
Why We Like It
  • Limited-Time Offer: Earn a $50 or $400 cash bonus1plus a boosted up to 4.40% APY2on Savings (3.30% APY1with +1.10% APY Boost) for up to 6 months when you open a new account and set up eligible direct deposits. Terms apply.
  • No account, overdraft, or monthly fees.4
  • Get your paycheck up to two days early with direct deposit.5
  • Access additional FDIC insurance up to $3 million.6
  • Excellent 4.3/5
Open Account on SoFi's secure website, Member FDIC

Must-Read Buzz

News & Trending 8 Easiest Bank Accounts To Open Online + Get Approved Fast [2026] ->

Banks With Early Direct Deposit [2026]: 25 Accounts for Early Pay ->

5 Best Bank Bonuses Without Direct Deposit [November 2026] ->

What a Rate Hike Actually Does to a $40,000 Savings Balance ->

A Retiree With $220,000 in Savings Ran the Numbers - Here’s the Gap ->

Financebuzz logo

Thanks for subscribing!

Please check your email to confirm your subscription.