- If you deposit $1,000 into a high-yield savings account with a 4.5% APY, you’ll earn just over $45 in interest after one year. At 5% APY, you’d earn about $51.
- If you deposit $1,000 into a high-yield savings account with a 4.5% APY at age 20, you’ll earn almost $6,100 in interest by age 65.
- According to our LA Times visitors, the most popular high-yield savings accounts for maximizing $1,000 are: American Express (4.00% Annual Percentage Yield), BrioDirect (5.00% APY), and CIT Bank (4.70% APY).
- You can grow your savings faster by making regular, scheduled deposits.
- CDs and money market savings accounts are some alternatives to high-yield savings accounts.
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On This Page
- Key Takeaways
- How much will $1,000 make in a high-yield savings account?
- More details on our most popular high-yield savings accounts
- How much can I earn with our top banks?
- How much could I earn by 65 with $1,000 in a high-yield savings account?
- How to maximize saving $1,000 in a high-yield savings account
- Alternatives to high-yield savings accounts
- FAQ: How much will $1,000 make in a high-yield savings account?
- Related topics
On This Page
- Key Takeaways
- How much will $1,000 make in a high-yield savings account?
- More details on our most popular high-yield savings accounts
- How much can I earn with our top banks?
- How much could I earn by 65 with $1,000 in a high-yield savings account?
- How to maximize saving $1,000 in a high-yield savings account
- Alternatives to high-yield savings accounts
- FAQ: How much will $1,000 make in a high-yield savings account?
- Related topics
How Much Will $1,000 Make in a High-Yield Savings Account?
Kimberly Varvel - Finance
+ 1 other
Reviewed By
Blake Esken - Los Angeles Times
Our most popular high-yield savings accounts over the past year
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American Express® Savings Account
Member FDIC
Rates as of 10/30/2024
Rates as of 10/30/2024
APY
apy
Monthly Fee
$0.00
Minimum Opening Deposit
$0.00
Highest available APY
![displayname]()
BrioDirect Savings Account
FDIC Insured
rates_last_updated
rates_last_updated
APY
apy
Monthly Fee
$0.00
Minimum Opening Deposit
$5000.00
Best for balances over $5,000
CIT Platinum Savings Account
Member FDIC
rates_last_updated
rates_last_updated
APY
apy
Monthly Fee
$0.00
Minimum Opening Deposit
$0.00
How much will $1,000 make in a high-yield savings account?
If you deposit $1,000 into a high-yield savings account with a 4.5% annual percentage yield (APY), you’ll earn a little more than $45 in interest after one year. With an APY of 5%, your interest earnings would be about $51 after one year.
According to the FDIC, the average yield on a regular savings account is 0.45% as of October 2024. These high-yield APYs are significantly better than this average savings account rate, which would earn less than $5 after one year.
You can compare the earnings on a $1,000 deposit with our most popular savings accounts listed below.
More details on our most popular high-yield savings accounts
Advertiser Disclosure
American Express® Savings Account
Member FDIC
Rates as of 10/30/2024
Rates as of 10/30/2024
APY
apy
Monthly Fee
$0.00
Minimum Opening Deposit
$0.00
Why We Like It
Editor's take
This FDIC-insured high-yield savings account offers an impressive 4.00% APY, nearly ten times the national average. There is no minimum balance requirement to receive this high APY, making it ideal for those just starting their saving journey.
Additionally, there is no minimum deposit requirement or any monthly maintenance fees. However, since there is no ATM card, to withdraw funds, you’ll need to link the account to a checking account and transfer money, which can take up to two days.
PROS
- Impressive apy% APY
- No monthly maintenance fees
- No minimum balance requirements
- No minimum deposit requirement
- FDIC-Insured
CONS
- No ATM card
- Need to link checking account to transfer funds which can take up to two days
- APY isn’t as high as other competitors
BrioDirect Savings Account
FDIC Insured
rates_last_updated
rates_last_updated
APY
apy
Monthly Fee
$0.00
Minimum Opening Deposit
$5000.00
Why We Like It
Editor's take
A high-yield online savings account with BrioDirect offers 5.00% APY, one of the highest rates available on the market right now. The rate on this account is variable and can change over time, but this is clearly a great time to sign up and get your savings working for you.
The online application process to sign up to a BrioDirect account is extremely straightforward, you just need to provide your contact information, driver’s license, passport or state I.D. and Social Security number. The process can be done via smartphone and takes minutes to complete. If you’re looking to sign up to an excellent rate extra quickly, this is the account for you.
PROS
- High APY
- No monthly fees
- Quick and easy online application
CONS
- BrioDirect doesn’t offer a money market or checking account
- High minimum opening deposit of $5,000
CIT Platinum Savings Account
Member FDIC
rates_last_updated
rates_last_updated
APY
apy
Monthly Fee
$0.00
Minimum Opening Deposit
$0.00
Why We Like It
Editor's take
The CIT Platinum Savings Account offers a competitive 4.70% APY for balances of $5,000 and above, making it an attractive option for those looking to grow their savings. However, for balances below $5,000, the APY drops significantly to the less-than-impressive rate of 0.25%, which is even lower than the national average APY of 0.46%.
With that being said, there are no fees to open a CIT Platinum Savings Account and it doesn’t come with any monthly maintenance fees. Therefore, if you’re confident in maintaining a balance of at least $5,000, this savings account could certainly be a great choice.
PROS
- 4.70% APY if you meet the minimum requirement
- No monthly maintenance fees
- FDIC-Insured
- No fees to open an account
CONS
- Low APY for balances below $5,000
- No physical branches
- Minimum opening deposit requirement of $100
Bask Bank Savings Account
FDIC Insured
Rates updated as of 09/23/2024
Rates updated as of 09/23/2024
APY
disclosure
apy
Monthly Fee
min_deposit
Minimum Opening Deposit
$0.00
Why We Like It
Editor's take
Bask Bank is offering a high-yield savings account that can earn you 4.85% APY, which is up there with the highest interest rates on offer at the moment.
With no minimum balance requirement, customers looking to start saving with any amount can benefit from this high APY. No monthly account fees are charged by Bask Bank, meaning your savings won’t be at risk of being eaten into, and you can manage your finances easily using the Bask Bank mobile app. We’re big fans of this product, which you can sign up for in 15 minutes or less.
PROS
- Competitive APY
- No monthly maintenance fees
- No minimum balance requirements
CONS
- No in-person services
- BaskBank doesn’t offer a checking account
Western Alliance Bank Savings Account
LEARN MORE
Member FDIC
Rates updated as of 10/02/2024
Rates updated as of 10/02/2024
APY
4.65 %
Monthly Fee
$0.00
Minimum Opening Deposit
$1.00
Why We Like It
Editor's take
The Western Alliance Bank Savings Account offers an impressive interest rate of 4.65%. Available through Raisin, this FDIC-insured high-yield savings account has no monthly maintenance fees, and you can open an account with as little as $1.
If your primary goal is to earn high interest on your savings, the Western Alliance High-Yield Savings Account could be the perfect choice for you.
PROS
- Competitive APY of 4.65%
- $1 minimum opening deposit
- $1 minimum balance requirement
- No monthly maintenance fees
- FDIC-insured
CONS
- No in-person services
- Balances are capped at FDIC maximums
- Transfers can take up to one to three days
- Doesn’t come with a debit card
Earnings after one year on $1,000 in a high-yield savings account
| APY | Interest earned annually on $1,000 | Total ending balance |
|---|---|---|
| 0.45% | $4.50 | $1,004.50 |
| 4.25% | $43.34 | $1,043.34 |
| 4.50% | $45.94 | $1,045.94 |
| 5.00% | $51.16 | $1,051.16 |
| 5.25% | $53.78 | $1,053.78 |
| 5.50% | $56.41 | $1,056.41 |
The calculations shown are just a simple example. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.
The calculations in the table above assume:
- There are no account fees
- The interest rate is fixed for the term
- Interest is compounded monthly
- You make no deposits or withdrawals during the 12-month period
How much can I earn with our top banks?
Our top picks for the best savings accounts have APYs that greatly exceed those of regular savings accounts. See how much you can earn on a $1,000 deposit in one year with our top bank choices in the table below.
Earnings after one year on $1,000 with some of our top picks for the best savings accounts
| Bank | APY | Interest earned annually on $1,000 | Total ending balance |
|---|---|---|---|
| Bask Bank | 4.85% | $48.50 | $1,048.50 |
| CIT Bank | 4.70% | $47.00 | $1,047.00 |
| Western Alliance | 4.65% | $46.50 | $1,046.50 |
| Cloudbank 24/7 | 4.57% | $47.50 | $1,047.50 |
| UFB Direct | 4.57% | $45.70 | $1,045.70 |
| SoFi | 4.30% | $43.00 | $1,043.00 |
| American Express | 4.00% | $40.00 | $1,040.00 |
| Chase | 0.01% | $0.10 | $1,000.10 |
APYs are correct as of October 2024 and may vary by location. The calculations shown are just a simple example. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.
The calculations in the table above assume:
- There are no account fees
- The interest rate is fixed for the term
- Interest is compounded monthly
- You make no deposits or withdrawals during the 12-month period
How much could I earn by 65 with $1,000 in a high-yield savings account?
If you deposit $1,000 into a high-yield savings account with a 4.5% APY at age 20, you will have earned nearly $6,100 in interest by the time you turn 65.
Each year your money stays in a high-yield savings account, the interest accrued from previous years also earns interest. This means that your money is generating more interest year after year. To maximize the power of compound interest in a high-yield saving account, start saving as early as possible.
In the table below, you can see how your total savings will increase over time based on the age at which you begin saving.
Earnings on a $1,000 deposit in a high-yield savings account with a 4.5% APY over time
| Starting age | Years to 65 | Interest earned | Total ending balance |
|---|---|---|---|
| 20 | 45 | $6,093.82 | $7,093.82 |
| 25 | 40 | $4,706.08 | $5,706.08 |
| 30 | 35 | $3,589.82 | $4,589.82 |
| 35 | 30 | $2,691.93 | $3,691.93 |
| 40 | 25 | $1,969.69 | $2,969.69 |
| 45 | 20 | $1,388.74 | $2,388.74 |
| 50 | 15 | $921.44 | $1,921.44 |
| 55 | 10 | $545.55 | $1,545.55 |
| 60 | 5 | $243.20 | $1,243.20 |
The calculations shown are just a simple example. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.
The calculations in the table above assume:
- The APY is fixed at 4.50% and does not change
- Interest is compounded annually
- You make no additional deposits nor withdrawals
- There are no account fees
To learn more about how much you could earn over time, try using our savings calculator.
How to maximize saving $1,000 in a high-yield savings account
The advantages of keeping money in a high-yield savings versus a regular savings account are apparent. Of course, a higher APY generates more growth, but there are other ways to maximize the power of a high-yield savings account.
Here are some ways to make your money work harder for you.
Compound interest
The table above shows that $1,000 invested at 4.5% from age 20 to 65 will generate $6,093.82. If you invest that money only from age 40 to 65, the interest generated is $1,969.69. If you wait until age 60 to invest and keep the money in your high-yield savings account for five years, you will receive $243.20 in interest.
The power of compound interest is substantial. While most high-yield savings accounts have a variable interest rate, this basic example shows how important it is to start saving as soon as possible.
You should also know the difference between an account that compounds interest daily and one that compounds interest monthly, quarterly or annually. When interest compounds more frequently, more interest accumulates over time.
Low or no fees
The APY, fees and minimum account balance requirements vary from bank to bank. Consider each of these factors before looking at how to open a high-yield savings account. Many banks with high-yield savings accounts do not have a maintenance fee. Some of those with a monthly or annual fee will waive the fee if a minimum account balance is maintained.
The fee is automatically deducted from your account balance. This means you pay the fee with the interest that your money earned. Because of this, it’s advisable to avoid HYSAs that charge monthly or annual fees.
Automate payments
Automating deposits to your high-yield savings account is another smart way to maximize growth. By setting up an automatic deposit, your HYSA receives regular infusions of additional money. There’s no possibility that you’ll overlook making a planned deposit, so the funds will consistently grow. Each deposit increases the total interest generated and boosts the power of compounded interest.
Alternatives to high-yield savings accounts
A high-yield savings account outperforms a regular savings account, but it doesn’t compare to the average yield of the S&P 500. Over the last 20 years, the annual return on the S&P 500 has averaged 7.7%. However, a high-yield savings account is a no-risk place to park your funds. While the APY will vary, your FDIC-insured balance is up to $250,000 per depositor and account. In comparison, you could potentially lose all of your funds if you make a bad stock market investment.
There are a few alternatives to high-yield savings accounts. CDs and money market accounts are also FDIC-insured.
CDs
If you buy a CD, you’ll typically choose a term from six months to five years. If you withdraw your funds before the end of the term, you are responsible for an early withdrawal fee. According to the FDIC, the average yield on a 60-month CD is 1.43%. The average yield on a 6-month CD is 1.81%.
With a high-yield savings account, you generally have a limited number of monthly withdrawals, and no fee is associated with withdrawals. Because a fee is charged when you cash out a CD early, some people may be less inclined to withdraw their funds held in a CD. This can be advantageous for people who tend to dip into their savings.
Money market accounts
The average yield on a money market account is currently 0.66%. This exceeds the APY on a regular savings account. However, it’s far lower than the APY for a CD or high-yield account.
With a money market account, there isn’t a limit on the number of monthly withdrawals you can make. You may also be able to access your funds via an ATM or write checks from the account. In these ways, a money market account can be a smart place to store cash that you don’t need at the moment but may need access to soon or at a moment’s notice.
FAQ: How much will $1,000 make in a high-yield savings account?
Is it worth putting money into a high-yield savings account?
A high-yield savings account has an APY of between 4% and 5% or more. This is an FDIC-insured account with a higher APY than a regular savings account, a money market account or a CD. However, the primary drawbacks are a limit on withdrawals per month and potential fees. If you want to maximize growth in a no-risk account, a high-yield savings account is worth considering.
What is the average return on a high-yield savings account?
The APY on a high-yield savings account varies from bank to bank and fluctuates over time. Currently, it is between 4% and 5% or more. However, there is some variation outside this range.
How much interest does $1,000 earn in a year in a high-yield savings account?
The interest on $1,000 in a high-yield savings account in a year is $51.01. This is based on a 5% APY with interest compounded monthly.
How much will $5,000 earn in a high-yield savings account?
A $5,000 deposit in a high-yield savings account will earn $255.81. This is based on a 5% APY with interest compounded monthly for 12 months. After 60 months, the interest earned is $1,381.414
Is it worth putting $1,000 into a CD?
A CD has a lower APY than a high-yield savings account, so your interest earned is less than it would be in a high-yield savings account. However, you must pay an early withdrawal fee to access funds in a CD. This can discourage you from making an early withdrawal. A CD is worth considering if you need help keeping money in savings. If you want to maximize growth, other types of accounts are better.
How much will a $1,000 CD make in a year?
A $1,000 CD will earn $18.70 in a year, based on an average APY of 1.85% on a 12-month CD.
About the Author
Kimberly Varvel brings over 12 years of experience in commercial real estate finance, specializing in loan processing, underwriting, and sales. With more than five years as a licensed real estate professional and over 14 years as a professional freelance writer, Kimberly has a unique blend of practical experience and writing expertise. Her comprehensive knowledge in the real estate sector enables her to provide insightful, accurate, and engaging content that helps readers navigate the complexities of commercial real estate finance.
About the Reviewer
Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.
As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.
He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.
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