Here's how much interest a $60,000 high-yield savings account will earn in one year
Certificate of deposit (CD) accounts have high, fixed interest rates readily available for savers right now. But those big returns won't come without some sacrifice on behalf of account holders. In order to secure that rate, savers will need to be willing to lock their money into the account until the term has matured. Withdraw the funds prematurely and you'll get stuck paying an early withdrawal penalty, bringing you right back to where you started your savings journey. So while this account offers lucrative opportunities for savers right now, it won't be right for everyone and that's especially true for those with large, five-figure amounts like $60,000 at play.
For these savers, a high-yield savings account stands out as a viable alternative. Interest rates here are competitive with the top CDs but the account won't limit access the way its counterpart will. That means you'll be able to continue to make deposits and withdrawals as you've been accustomed to with your traditional account all while earning an exponentially higher rate (rates on traditional accounts sit under 0.50% currently). To better determine the value of this account with a $60,000 deposit, then, it helps to start with the interest-earning potential.
See how much interest you could be earning by opening a high-yield savings account now.
Here's how much interest a $60,000 high-yield savings account will earn in one year
The best high-yield savings account interest rates now range from 3.95% to 4.10%, though savers should expect to find rates both lower and slightly higher when shopping around online. That said, these rates can and will change over time thanks to their variable structure. Here's how much interest a $60,000 high-yield savings account will earn over the next year, calculated against three of the top rates and the assumptions that no account activity impacts the principal deposit amount and that the rates will hold steady:
- $60,000 high-yield savings account at 3.95% after one year: $2,370.00
- $60,000 high-yield savings account at 4.00% after one year: $2,400.00
- $60,000 high-yield savings account at 4.10% after one year: $2,460.00
Savers are positioned to earn between $2,370 and $2,460, approximately, with a high-yield savings account of this size over the next 12 months. That noted, these returns are unlikely to look exactly the same by August 2027 as the account's variable rate could increase if the Federal Reserve raises interest rates later this year or it could drop if economic conditions change from what they are now. This doesn't mean that this account isn't still valuable, especially for five-figure deposit amounts, but it does mean that some variability should be expected, especially over an extended period.
Learn more about the high-yield savings account options available to you here.
How much interest will a $60,000 traditional savings account earn in one year?
Not sure if it's worth making the transfer from a traditional savings account into a high-yield one? A quick look at the interest-earning potential can help you make a final decision. With an average rate of just 0.38% with a traditional savings account, you'll earn just $228 with this account size, assuming that the rate even holds.
Or, put another way, you'll earn thousands of dollars more in interest with the high-yield savings account while still maintaining the access and flexibility you're already accustomed to. Leaving money in a traditional savings account, then, essentially means giving up money that you can easily be earning with an alternative right now.
The bottom line
With a return worth more than $2,300 (and potentially more depending on how economic conditions evolve) and without the need to adjust your banking needs or accessibility, a $60,000 high-yield savings account merits serious consideration for savers looking for a new home to park their money now. Just be sure to take the time to shop around for rates and accounts in order to boost your chances of finding the most profitable option. With online marketplaces listing rates, accounts, banks and more in one location, however, you can start this process right away.
