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- Money set aside for a big project can earn interest while you wait. Our $32,000 earned about $434 in a high-yield savings account over six months.
- Big projects often take longer than planned. Our kitchen remodel took about six months, partly because the first cabinet quotes came in at double our budget.
- Keep the money accessible. When our deposit was due, we moved it to checking in one business day.
- 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 ten times more with a SoFi account. See SoFi®'s current rate.
When my husband and I bought a home, it had been in foreclosure for a while, and the kitchen needed quite a bit of help. The cabinets actually had some mold in them and, oddly enough, the house was missing both a countertop and a sink, so the need for a remodel was fairly urgent.
We had earmarked $32,000 for new cabinets and appliances, but unfortunately, despite our best efforts to dive into the remodeling process immediately, we hit some snags along the way.
The remodeling process ended up taking around six months, so all $32,000 sat in savings for three months until we made a $16,000 deposit, and the remaining half remained in our account for another three months.
Fortunately, all was not lost. The full $32,000 made us about $289 in those three months that it was all in savings, while the remaining $16,000 after we paid our deposit netted us about $145 more. The grand total was about $434 for cash that was just sitting there anyway, and the interest on that account ended up helping to cover the cost of the dishwasher we ultimately installed.
Where the money sat (and why)
While we'd been saving for the kitchen remodel, the funds sat in a checking account at our longtime bank.
Since we intended to try to move quickly, we didn't see the need to do anything special with it. It was a secondary checking account for us, so we just funneled the money in there out of convenience.
However, when we started to get quotes on the project from cabinet companies in Florida, we were disappointed to find out the custom cabinets we wanted would cost much more than the amount we had expected.
Since we needed to go back to the drawing board and find another solution, it didn't make much sense for us to leave the money just sitting in our bank account not earning any interest.
Fortunately, around that time we got an email from the bank where we had an old high-yield savings account. The bank was alerting us to a rate change, and even after the change, the account was paying 3.60% in May 2025.
We decided to move our money that very day. While it would have earned nothing in our bank account, it could start earning us money right away in the high-yield savings account, and we knew it would be easily accessible when we were ready to get started.
| If you have | One year at 0.38% APY (national average) | One year at 3.80% APY (example) | You are leaving behind |
| $10,000 | $38 | $380 | $342 |
| $25,000 | $95 | $950 | $855 |
| $40,000 | $152 | $1,520 | $1,368 |
| $50,000 | $190 | $1,900 | $1,710 |
| $100,000 | $380 | $3,800 | $3,420 |
What it earned while I got quotes
Since we were unhappy with the initial cabinet quotes that we had obtained in Florida, many of which came in at double the amount we had expected to spend, we decided to get creative.
Many years earlier, we'd done a large kitchen remodel with some Mennonite cabinetmakers near the house we lived in at the time in Pennsylvania. We asked them if they might be willing to make the cabinets for us, and we could drive them down to Florida and have our contractor install them.
We actually ended up in luck, as they agreed to not only make the cabinets within our budget but to bring them down and install them for us if they could bring their family along for a vacation and stay in our home in Orlando.
Since we knew them well from our previous project and the work they do is amazing, we readily agreed. But it had taken us a while to come up with that solution after trying multiple local cabinet companies.
During that three-month period while we shopped around, our $32,000 was in a high-yield savings account where it earned us about $289.
How long the remodel really took to start
Once we had confirmed our plans, we paid the $16,000 deposit to our cabinetmakers and then waited for them to custom-make the cabinets and get ready to drive down to Florida.
This whole process took another three months, leaving our remaining $16,000 in the high-yield savings account.
That extra three months of waiting earned us about $145 more in interest, which was a nice bonus. Of course, since we were without a fully functioning kitchen, we were relying on a toaster oven and sinks in other parts of the house, so the situation wasn't ideal. But at least we were able to make some money during the process.
What I'd tell someone saving for a big project
For anyone saving for a home project, my biggest advice would be to expect the unexpected. The process is very likely going to take longer than you expect. Unless you get lucky, you are potentially going to go way over budget because a lot of items end up being more expensive than you'd think (we would have, if our cabinetmakers hadn't come to the rescue).
And you may need to move quickly once you find the right solution. We wanted to make our deposit as soon as we'd signed our contract to get the cabinets started as soon as possible. We were very happy we had our money accessible in the high-yield savings account and were able to move it over into our bank account within just one business day.
Since the process may take longer than you'd think, I'd also advise trying to maximize your interest from the start. While we were in the process of saving the money, we hadn't bothered to move it into a high-yield savings account since we thought our project would go so much faster than it did. We lost out on months of interest, and potentially hundreds of extra dollars.
For any future projects, I won't just stick with whatever account I happen to have open. I'll be researching the best available options to maximize my money so that I can benefit from the ability to earn interest without any added risk.
Bottom line
My high-yield savings account was the perfect solution for me during my kitchen remodel. If you are doing a project of your own, explore the interest rates offered by high-yield savings accounts to find a safe, accessible account that will provide a reasonable return while you wait for your project to unfold.
FAQs
Where should I keep money I'm saving for a home renovation?
When you are saving for a home renovation, you should likely keep your money in a high-yield savings account. This type of account provides a reasonable or even generous return on investment, while allowing you to keep your money accessible when you need it.
Should I put remodel savings in a CD?
Putting remodel savings in a certificate of deposit (CD) might make sense if you won't need the money immediately. CDs require you to lock up your money until they mature, and you face a penalty if you withdraw your funds before the end of the CD term.
If you need the money more quickly because something unexpected happens during your remodel, then you may not be able to access it without losing some of it.
How quickly can I get money out of a high-yield savings account?
The timeline for getting money out of an online high-yield savings account varies depending on the account. It's common for accounts to allow you to move your funds within one to two business days, but check with the bank if timely withdrawals are a priority.
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
|
Bonus Offer | Open Account | Bonus Offer |
|---|---|---|---|---|
AWARD WINNER
Best Checking and Savings Combo
|
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5.0
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4.20
With $0 min. balance1 <p>Earn up to 4.20% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.30% APY as of 9/23/26) 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>
%
APY
|
Limited-Time Offer: +0.90% boost on Savings APY to up to 4.20% for up to 6 months on new accounts1 <p>Earn up to 4.20% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.30% APY as of 9/23/26) 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 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 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% 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 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>.</p> Terms apply. | ||
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4.9
|
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 October 31, 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 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% 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 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>.</p> plus a boosted up to 4.20% APY1 <p>Earn up to 4.20% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.30% APY as of 9/23/26) 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
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