How much will a $40,000 high-yield savings account earn in 2026?
Just under 0.40%. That's what the average interest rate on a traditional savings account is currently, in the early days of 2026, according to the FDIC. Put another way: Savers will only earn 39 cents for every $100 left in one of these account types. And with the inflation rate at 2.7% right now, savers are essentially losing money by keeping their funds here this year.
But there are still viable alternatives in which savers can earn an exponentially higher rate. And with a high-yield savings account, they won't need to forego access to their funds in the way they would with a certificate of deposit (CD). Though interest rates here are not quite as high as they were a year or two ago, they remain competitive. That makes them worth exploring, regardless of whether your initial deposit is worth a few thousand dollars or something larger like $40,000.
To better determine the value of a high-yield savings account of this size, it helps to know how much interest it can potentially earn this year. Below, we'll do the math.
See how much interest you could be earning with a high-yield savings account here.
How much will a $40,000 high-yield savings account earn in 2026?
Calculating the interest-earning capability of a high-yield savings account can be difficult to do with precision since the account employs a variable interest rate that will change over time based on market conditions. So some speculation will inherently be required here. Here's what it could earn now, calculated against one of today's top rates, four different time frames and the assumption that the rate remains constant throughout 2026:
- $40,000 high-yield savings account at 4.20% after three months: $413.54
- $40,000 high-yield savings account at 4.20% after six months: $831.36
- $40,000 high-yield savings account at 4.20% after nine months: $1,253.50
- $40,000 high-yield savings account at 4.20% after one year: $1,680.00
Savers, then, can easily earn hundreds of dollars in interest with a high-yield savings account of this size and, potentially, more than $1,200 or so later this year, assuming today's rates don't change dramatically. At the same time, rates here aren't generally expected to rise any further, and they could decline if the interest rate climate cools, as it has in recent months, so the time to take advantage of this unique savings vehicle is now, while rates are still at or above 4%.
Get started with a high-yield savings account online today.
What about a $40,000 CD account?
As mentioned, CDs require savers to leave their money untouched in the account for the full term or risk paying an early withdrawal fee. And while rates here aren't quite as high as the top high-yield savings accounts, the returns will be guaranteed as long as the account is maintained. For context, here's how much a $40,000 CD account will earn this year, calculated against today's top rates, four different terms and the assumption that no penalties are levied against the account:
- 3-month CD at 3.90%: $384.42 upon maturity
- 6-month CD at 4.10%: $811.76 upon maturity
- 9-month CD at 4.00%: $1,194.10 upon maturity
- 1-year CD at 4.10%: $1,640 upon maturity
These accounts can be viable, profitable homes for your $40,000, too. Or they could be mixed with high-yield savings accounts for those who want to earn a high rate but still want to maintain flexibility should they need access to a portion of their funds in the future.
The bottom line
A $40,000 high-yield savings account can earn savers between $414 and $1,680, approximately, this year should today's rates remain where they are right now. That makes them exponentially more profitable than traditional savings accounts and, if used in conjunction with CDs, can help savers both boost their bottom line and maintain some flexibility in the new year. Consider reviewing both carefully, then, as either could be the smart home for your money in 2026 and possibly even in the years that follow.