How Much Will $5,000 Make You in a High-Yield Savings Account?

Right now is an especially great time to have cash in the bank. The reason? You can earn a much higher rate on your savings than we've seen in years. Whether you're interested in certificates of deposit, money market accounts, or high-yield savings accounts (HYSA), banks and credit unions have sweetened their APYs. It's not difficult to earn a return of 4%, 5%, or higher on your savings.

Let's take a look at how much you can expect to earn on $5,000 in a few different savings account options.

What happens to your $5,000 in a big-bank savings account?

Your first impulse might be just to open a savings account with the big bank around the corner from your home. Unfortunately, these tend to pay just 0.01% APY.

If you leave your $5,000 in a savings account paying such a low APY, not only will you barely make any money in interest, but you'll face another problem: If your interest rate isn't at least as high as the rate of inflation, your cash is actually losing value.

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
American Express® High Yield Savings APY 4.25% Rate info 4.25% annual percentage yield as of August 29, 2024 Min. to earn $1 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	APY 4.25% Rate info 4.25% annual percentage yield as of August 29, 2024	Min. to earn $1
UFB Portfolio Savings Account APY 5.15% Rate info To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts. Min. to earn $0 Open Account for UFB Portfolio Savings Account On UFB's Secure Website. Member FDIC.	APY 5.15% Rate info To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.	Min. to earn $0

Here's what you'll make after one year with your $5,000 in an account paying the typical big-bank rate of 0.01%, along with an account paying the current average rate across all savings accounts of 0.45%:

You could maybe buy a gumball with that $0.50. And $22.55 would certainly buy you lunch. But who wouldn't want to make more money? The options to do so are out there.

How about a high-yield savings account instead?

Here are three breakdowns of your earnings after one year with $5,000 in an account with a higher APY, based on our favorite high-yield savings accounts:

According to the Consumer Price Index, the most recent inflation figure was 3.0% as of June 2024. You're handily beating that with any of the savings rates in this second table. And in terms of real money, earning more than $250 on your saved cash in a year is sweet indeed.

Other HYSA features to look for

As important as they are, it's not all about rates when you go looking for a new home for that $5,000. Here are a few other features to target:

• An easy-to-use banking interface: Opening a new high-yield savings account with an online-only bank (these tend to offer the highest APYs) is like zooming into the future. Whether you prefer to bank via mobile app or web browser, pick a bank with a clean layout and tools that are easy to find.
• Buckets: This is my favorite feature of my own HYSA -- I love being able to save for multiple goals within the same bank account. Depending on your bank, the feature might be called "pockets," "vaults," or "jars," rather than "buckets."
• Money access: You're not likely to get an ATM card with your HYSA, but you should be able to easily link a checking account to transfer money in and out when you need it.
• Decent customer service: People like to complain on the internet, but it's still worth checking out user reviews for a bank you're considering. If you see the same problem repeated in many reviews, it's probably a legitimate issue for that bank.
• FDIC insurance: Never ever do business with a bank that isn't a member of the FDIC. FDIC insurance coverage means that up to $250,000 of your money in that HYSA is safe and will be returned to you in the event of bank failure.

Ready to find a new home for your $5,000 now that you've seen how much money you can make on it with one of the best HYSAs? Go forth and conquer.