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$25,000 at a 4.00% annual percentage yield (APY) earns about $1,000 over one year, or roughly $83 a month.
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The same $25,000 at 0.38% APY earns $95 over one year, or around $8 a month.
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That gap is about $905 in one year, enough to make moving extra cash worth a closer look.
- 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 savings sitting around, you probably already know that earning interest sounds better than earning nothing. But the better question is whether the interest would be big enough to show up in your life.
A high-yield savings account, or HYSA, can make the goal of earning $1,000 in interest feel surprisingly reachable while keeping your cash available. But the timeline depends on three plain things: how much money stays in the account, the APY, and how long you leave the money there.
By the end, you'll have a quick way to estimate your own timeline, adjust when rates change, and decide how much cash belongs in savings versus somewhere less flexible.
About $25,000 gets you there
Here's the direct answer: if you find a high-yield savings account paying 4.00% APY, which is an achievable rate in the current high-yield savings market, $25,000 earns about $1,000 in interest over one year. That calculation uses simple interest, so compounding could move the final account statement a little.
When you're comparing accounts, APY tells you what savings accounts pay over a year. For the $1,000 goal, the math is friendly: $25,000 multiplied by 4.00% equals $1,000.
You don't need exactly $25,000 for a HYSA to be worthwhile. The $25,000 balance is just the clean one-year answer at 4.00% APY. A smaller balance can still earn useful interest, but the clock runs longer.
Your balance sets the clock
The shortcut is simple enough to do on a phone calculator. Annual interest is roughly your savings account balance multiplied by the APY. Then the time needed to earn $1,000 is roughly $1,000 divided by that annual interest amount.
Here's the basic formula:
$1,000 / annual interest = years to reach $1,000
At 4.00% APY, which lines up with competitive high-yield savings rates right now, the rough timelines look like this before compounding nuance:
| Balance | One-year interest at 4.00% APY | Rough time to earn $1,000 |
| $5,000 | ~ $200 | ~ Five years |
| $10,000 | ~ $400 | ~ Two and a half years |
| $25,000 | ~ $1,000 | ~ One year |
So if you have $10,000 in savings, the goal of earning $1,000 in interest isn't out of reach. It just takes more time at the same rate. And if you're adding to the account along the way, the timeline improves because future interest is calculated on a larger balance.
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 4.00% APY on your savings balance with direct deposit. (3.10% APY2 <p>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 Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at <a href="https://www.sofi.com/banking/checking-offer/">sofi.com/banking/checking-offer/</a></p> with +0.90% APY Boost) for up to 6 Months on new accounts.1 <p>Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC.</p> SoFi also offers more special features than any other account combo we looked at:
No account fees: No overdraft fees.3 <p>Overdraft Coverage is a feature automatically offered to SoFi Checking and Savings account holders who receive at least $1,000 or more in Eligible Direct Deposits within a rolling 31 calendar day period on a recurring basis. Eligible Direct Deposit is defined on the SoFi Bank Rate Sheet, available at <a href="https://www.sofi.com/legal/banking-rate-sheet">https://www.sofi.com/legal/banking-rate-sheet</a>. Members enrolled in Overdraft Coverage may be covered for up to $50 in negative balances on SoFi Bank debit card purchases only. Overdraft Coverage does not apply to P2P transfers, bill payments, checks, or other non-debit card transactions. Members with a prior history of unpaid negative balances are not eligible for Overdraft Coverage. Eligibility for Overdraft Coverage is determined by SoFi Bank in its sole discretion. Members can check their enrollment status, if eligible, at any time by logging into their account through the SoFi app or on the SoFi website.</p> No minimum balance fees. No monthly fees.4 <p>We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a>.</p>
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 <p>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.</p>
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 <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor 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 $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>
Open an account with SoFi here.
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Lower APY pushes the date out
The finish date changes when the APY changes. $25,000 at 4.00% APY earns about $1,000 over one year, but the same $25,000 at 3.50% APY earns about $875 over one year.
That $125 difference doesn't wreck the plan, but it does push the $1,000 mark farther out. At $875 per year, the same balance needs a little more than one year to reach $1,000 before compounding details.
When your account rate changes, rerun the shortcut with the new APY. Multiply your current savings account balance by the new rate, then divide $1,000 by that annual interest amount. You'll have the updated timeline without turning your Saturday into a spreadsheet festival.
Compounding only shaves a little
Compounding means interest earns interest after the interest is added to your savings account balance. That helps, but for this $1,000 target, compounding usually tweaks the estimate instead of transforming it.
Think about the first month on $25,000 at 4.00% APY. The interest for that month is small compared with the original $25,000 balance, so the next round of interest has only a little extra money to work with.
Savings accounts can calculate and credit interest on different schedules, which is why your statement might not match the simple shortcut to the dollar. Still, balance multiplied by APY remains a useful way to estimate whether you're looking at months, years, or a very long wait.
Cash movement changes the finish
Real savings accounts don't sit in glass cases. You might add part of a bonus, move over tax-refund money, or pull cash out when a car repair decides to make itself the main character.
Deposits help because they raise the balance earning interest. $10,000 at 4.00% APY earns about $400 over one year. If you add $5,000 and keep $15,000 at 4.00% APY for one year, the account earns about $600 over that year.
Withdrawals move the math the other way. If you start with $25,000 but withdraw $5,000, the remaining $20,000 at 4.00% APY earns about $800 over the next year. You haven't failed at saving. You've just changed the balance that's doing the interest-earning work.
So the $1,000 target depends less on what you once deposited and more on the money that stays in the account. If your balance moves often, check the timeline against your average balance, not your highest balance.
Access matters as much as yield
Before chasing $1,000 in interest, decide what job the cash has. A HYSA could fit money you might need quickly, such as an emergency fund, a moving fund, or cash set aside for a near-term bill that hasn't arrived yet.
Money you truly don't need for a set period could invite comparisons with term deposit accounts, where access usually comes with more restrictions. The trade-off is simple: a HYSA keeps your cash easier to reach, while a locked term might ask you to give up flexibility for a stated period.
Safety also deserves a quick check. The FDIC generally insures eligible bank deposit accounts up to $250,000 per depositor, per FDIC-insured bank, per ownership category. If your savings balance is large, those ownership categories and institution limits matter more than squeezing out a few extra dollars.
Account friction can slow progress
APY gets the attention, but the account has to work when you need the money. Before moving savings, review the practical details that affect everyday use:
- Transfer speed: Check how long incoming and outgoing transfers usually take.
- Withdrawal access: Make sure you know how you'd get cash in an emergency.
- Minimum balance rules: Look for requirements that don't fit your normal savings balance.
- Recurring account costs: Watch for routine charges that make the interest less useful.
- Customer service access: Confirm there's a way to get help that works for you.
A slightly higher APY could lose its charm if moving money is slow, rules are confusing, or help is hard to reach. The account should make saving easier, not create a side quest.
Bottom line
A HYSA paying 4.00% APY gives you a clear benchmark: $25,000 earns about $1,000 in one year. If you have $10,000 at 4.00% APY, the account earns about $400 in one year and takes about two and a half years to reach $1,000 before compounding nuance.
So start with your savings account balance, multiply by the APY, and decide whether the timeline fits your cash needs. Money left earning nothing costs you the difference while you wait, and for $25,000, that difference is about $1,000 over a year at 4.00% APY.
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
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Bonus Offer | Open Account | Bonus Offer |
|---|---|---|---|---|
2026 AWARD WINNER
Best Checking and Savings Combo
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5.0
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4.00
With $0 min. balance
%
APY
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Limited-Time Offer: +0.90% boost on Savings APY to up to 4.00% for up to 6 months on new accounts1 <p>Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC.</p> + $50 or $400 Bonus with eligible direct deposit.2 <p>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 Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at <a href="https://www.sofi.com/banking/checking-offer/">sofi.com/banking/checking-offer/</a></p> Terms apply. | ||
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4.8
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4.00
With $250+ monthly deposits
%
APY
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— | ||
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4.9
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3.64
With $1 min. balance7 <p>APY means Annual Percentage Yield. APY is accurate as of as of 09/01/26. This is a variable rate account, Interest rate and APY may change after initial deposit. Minimum initial deposit to open account and earn interest is $1.00.</p>
%
APY
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Limited-Time Offer: Use code STACK to earn a cash bonus based on your savings balance. Earn up to $50 for $10,000, $125 for $25,000, $250 for $50,000, $500 for $100,000, or $1,000 for $200,000 or more. Visit site for full details.8 <p>New customers only. Earn a cash bonus (the "Welcome Bonus") when you deposit and maintain funds with partner banks on the Raisin platform. Customers will receive a Welcome Bonus of $40 for depositing between $10,000 and $24,999; $100 for depositing between $25,000 and $49,999; $200 for depositing between $50,000 and $99,999; $425 for depositing between $100,000 and $199,999; and $900 for depositing $200,000 or more. If the Qualifying Deposit balance declines at any time during the maintenance period below the minimum required for a bonus tier, the customer will be placed in the bonus tier corresponding to the lowest Qualifying Deposit balance maintained during that period. </p><p>Savings + CD Boost: Customers eligible for the Welcome Bonus may earn an additional bonus by opening a product in a second product category. To qualify, customers must deposit at least $1,000 into the secondary product category within 14 days of their initial deposit and maintain balances over $1,000 in both categories through 90 days from the initial deposit date.</p><p>For the purposes of this promotion, High-Yield Certificates of Deposit constitute one product category; No-Penalty CDs and Callable CDs constitute a second product category; and Savings Accounts (including Money Market Deposit Accounts, High-Yield Savings Accounts, and Rate Lock Savings Accounts) constitute a third product category. Savings + CD Boost eligibility is determined by your Welcome Bonus tier: customers depositing between $10,000–$24,999 receive an additional $10; $25,000–$49,999 receive an additional $25; $50,000–$99,999 receive an additional $50; $100,000–$199,999 receive an additional $75; and $200,000 or more receive an additional $100. </p><p>The Savings + CD Boost is optional and paid in addition to the Welcome Bonus. To qualify for the Welcome Bonus and Savings + CD Boost, your first deposit must be initiated between September 1, 2026, and September 30, 2026, by 11:59 PM ET, and the promo code STACK must be entered at the time of sign-up. Only funds deposited within 14 days of the initial deposit date and maintained with partner banks on the Raisin platform for 90 days of the initial deposit date will be eligible for the Welcome Bonus and Savings + CD Boost. Bonus cash will be credited directly to your Cash Account within 30 days of meeting all qualifying terms. This offer is available to new customers only, is non-transferable, and may not be combined with any other bonus offers. Raisin may modify or end this offer at any time and may withhold or revoke bonuses in cases of fraud, abuse, or violation of these terms or Raisin’s Terms of Service.</p> | ||
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- Limited-Time Offer: Earn a $50 or $400 cash bonus2 <p>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 Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at <a href="https://www.sofi.com/banking/checking-offer/">sofi.com/banking/checking-offer/</a></p> plus a boosted 4.00% APY1 <p>Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC.</p> on Savings for up to 6 months when you open a new account and set up eligible direct deposits. Terms apply.
- No account, overdraft, or monthly fees4 <p>We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a>.</p>
- Get your paycheck up to two days early with direct deposit5 <p>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.</p>
- Access additional FDIC insurance up to $3 million6 <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor 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 $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>
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Excellent 4.3/5
