Here's how much interest a $65,000 high-yield savings account can earn now
While it may be tempting to wait until you reach a round, milestone number in your savings account before shifting strategies, the reality is that in today's economy, delaying action could prove to be costly. With inflation still elevated, higher interest rates making borrowing costly and household debt sitting at a record high, where you store your money now is more important than usual. And, if you have an amount like $65,000 sitting in a traditional savings account, you're essentially losing money thanks to the paltry average rate of 0.38% those accounts currently employ.
Fortunately, this is an easy issue to rectify and you may even be able to do so online right now with select high-yield savings accounts. These accounts operate the same way traditional accounts do but with an interest rate exponentially higher than that 0.38%. That makes them a worthwhile and potentially lucrative alternative worth serious consideration now, even if your deposit amount sits at $65,000 or so. Before getting started, however, savers should begin by calculating the interest-earning potential associated with an account of this size.
See how much interest you can be earning with a high-yield savings account here.
Here's how much interest a $65,000 high-yield savings account can earn now
High-yield savings accounts employ variable interest rates that will rise or fall based on market conditions. But while that may be problematic in a climate in which rates are falling, it's less so now with the talk of an interest rate hike for later this year growing. Still, interest-earning projections here can be difficult to make with precision due to the inevitable rate changes, though savers can still gain a reliable approximation of what they stand to earn over the next year.
Here's how much interest a $65,000 high-yield savings account can earn now, calculated against a top available rate, four different time frames and the assumption that the rate will hold during each:
- $65,000 high-yield savings account at 4.10% after three months: $656.24
- $65,000 high-yield savings account at 4.10% after six months: $1,319.11
- $65,000 high-yield savings account at 4.10% after nine months: $1,988.68
- $65,000 high-yield savings account at 4.10% after one year: $2,665.00
The interest-earning potential with a high-yield savings account of this size can be substantial and worth more than $600 in just around 90 days or more than $2,600 by this time next summer. And, if rates tick up or if savers deposit more into the account in the interim, they'll earn even more.
That said, expect some variability here, especially over an extended period, as rates are unlikely to stay identical month to month. But if you want to earn a competitive return, maintain access to your funds as you're already accustomed to and feel comfortable using an online bank (which tends to offer more competitive rates than those with in-person branches), a high-yield savings account merits serious consideration now.
Learn more about your high-yield savings account options here.
The bottom line
While waiting to reach a milestone amount of money in your savings account may feel like the goal, the real one that savers should be striving for is to earn as much interest as possible on the money they already have. And that's true whether they have milestone amounts such as $70,000 or $75,000 or less conventional ones like $65,000. By shifting this much money into a high-yield savings account now, savers can earn hundreds and potentially thousands of dollars on their money without forgoing access. Before getting started, however, be sure to diligently shop around for rates and terms online to ensure that the account you ultimately decide on is the right one for your needs and savings goals.
