Here’s how much $100,000 in a high-yield savings account could earn you in a year
Key takeaways
- A high-yield savings account earning 4.20% APY will generate $4,200 in interest on $100,000 over one year — enough for a decent vacation or emergency cushion.
- That’s seven times more than the $600 you’d earn with a national average savings account (around 0.60% APY) and 430 times more than big banks paying 0.01% APY ($10 annually).
- Online banks consistently offer the highest savings rates because they don’t maintain expensive branch networks, letting them pass savings directly to customers.
- Savings account rates are variable and can change at any time, so lock in high rates while they last — or consider a CD if you want guaranteed returns.
Let’s cut to the chase: where you park $100,000 determines whether you earn enough interest to fund a vacation or barely enough to buy coffee. The difference between a competitive high-yield savings account and a big bank savings account can be massive.
If you’re keeping six figures in a traditional bank savings account earning 0.01% APY, you’re leaving thousands of dollars on the table every year. The math is simple, the opportunity cost is real — and switching takes about 10 minutes.
We’ll show you exactly how much $100,000 earns across different account types and where to find the best rates right now.
Ready to compare your options? See Bankrate’s best high-yield savings accounts.
How much interest does $100,000 earn in different savings accounts?
The table below shows annual interest earnings on $100,000 across three common savings account scenarios. These examples assume rates remain constant for one year and no additional deposits or withdrawals occur.
| Type of savings account | Typical APY | Interest on $100,000 after 1 year | Total amount in savings account after 1 year |
|---|---|---|---|
| High-yield savings account | 4.20% | $4,200 | $104,200 |
| National average savings account | 0.61% | $610 | $100,610 |
| Big bank savings account | 0.01% | $10 | $100,010 |
High-yield savings accounts: $4,200 annually at 4.20% APY
The best widely available high-yield savings accounts currently pay around 4.20% APY. At this rate, $100,000 generates $4,200 in interest over one year. Over five years, you’d earn over $22,000 in interest.
Online banks like Marcus by Goldman Sachs, American Express and Discover consistently offer rates in the 3.00-4.00% APY range because they don’t maintain expensive branch networks. Those savings get passed directly to customers through higher interest rates.
The catch is that these rates are variable, meaning they can change at any time based on Federal Reserve policy and bank funding needs. When the Fed cuts rates, high-yield savings rates typically follow within weeks.
Compare current high-yield savings account rates.
National average savings accounts: $600 annually at 0.60% APY
The national average APY for savings accounts sits at 0.6% APY. While this is almost sixty times better than big bank rates of 0.01%, it’s still significantly below what competitive accounts offer.
You’re leaving almost $3,600 on the table annually by settling for an average-rate account instead of a competitive high-yield savings account. Here are five tips to earn the highest possible interest rate on your savings account.
Big bank savings accounts: $10 annually at 0.01% APY
Major brick-and-mortar banks — including Chase, Bank of America, and Wells Fargo — typically offer savings account APYs around 0.01%. At this rate, $100,000 earns $10 in interest over one year.
Big banks can get away with rock-bottom rates because they rely on branch convenience and brand recognition rather than competitive products. You’re paying for that convenience with lost interest earnings.
By keeping $100,000 in a big bank savings account instead of a high-yield account, you lose $4,190 annually. Over five years, that’s over $20,000 in interest you’ll never see.
Time to switch? See how to open a high-yield savings account online
Why do interest rates vary so dramatically between banks?
The vast difference between big bank rates (0.01%) and high-yield rates (4.20%) comes down to business model and funding needs.
Online banks pay more because:
- No branch overhead: Without physical locations, online banks save millions on rent, staff and maintenance. Those savings fund higher interest rates.
- Aggressive customer acquisition: Online banks use competitive rates as their primary marketing tool to attract deposits from traditional banks.
- Efficient operations: Digital-first infrastructure costs less to operate than legacy brick-and-mortar systems.
Big banks pay less because:
- They don’t need to compete on rates: Established customer bases, branch convenience, and bundled services (checking, mortgages, credit cards) let them offer minimal savings rates without losing significant deposits.
- Lower funding pressure: Big banks have diverse funding sources beyond consumer deposits, reducing the need to offer competitive savings rates.
- Customers don’t shop around: Most people maintain savings accounts at their primary checking bank out of convenience, even when rates are terrible.
Compare online banks vs. traditional banks
Where to find the best high-yield savings account
If you’re serious about maximizing earnings on $100,000 (or any amount), online banks consistently offer the most competitive rates. Top online banks offering high-yield savings rates include American Express National Bank, Marcus by Goldman Sachs, Discover Bank, Ally Bank and Capital One 360.
Other features you may find important in a bank include fee-free ATM access, 24/7 customer phone support and a highly rated mobile banking app. Bankrate’s editorial staff has written bank reviews that compare these offerings among banks. Don’t forget to make sure your money is with a federally insured bank or credit union.
Are high-yield savings accounts safe?
Yes — as long as your money is at an FDIC-insured bank or NCUA-insured credit union.
FDIC insurance covers up to $250,000 per depositor, per bank, per account ownership category. This means your $100,000 deposit is fully protected even if the bank fails. For joint accounts, coverage extends to $250,000 per co-owner, meaning a joint account with two owners is insured up to $500,000.
Bottom line: Your principal is safe. Your interest rate is not guaranteed. If rate stability matters more than flexibility, consider a CD.
Should you use a high-yield savings account or a CD?
Both high-yield savings accounts and certificates of deposit (CDs) can earn competitive rates. The right choice depends on whether you need flexibility or want a guaranteed return.
When to choose a high-yield savings account:
- You need emergency fund access
- You’re saving for a goal but might need the money unexpectedly
- You want to take advantage of rising rates (if the Fed raises rates, your APY increases)
When to choose a CD:
- You won’t need the money for a set period (6 months to 5 years)
- You want to lock in a guaranteed rate before rates fall
- You’re willing to pay early withdrawal penalties for higher returns
Hybrid strategy: Split your $100,000 between high-yield savings (for emergency access) and CDs (for guaranteed higher returns on money you won’t touch). This balances flexibility and maximized earnings.
Learn more: High-yield savings account vs. CD — which is better?
Bottom line
$100,000 in a high-yield savings account earning 4.20% APY generates $4,200 in annual interest. The same amount in a big bank savings account at 0.01% APY earns just $10. That $4,190 annual gap compounds over time — meaning the sooner you switch, the more you earn.
Here’s what to do next:
- Check your current savings rate: Log into your bank and find your APY. If it’s below 4.00%, you’re leaving money on the table.
- Compare high-yield savings accounts: Use Bankrate’s rate comparison tools to find the best current offers.
- Open a new account: Most online banks let you open accounts in 10 minutes with no minimum deposit.
- Transfer your funds: Initiate an ACH transfer from your current bank to your new high-yield savings account.
The hardest part is getting started. Once your money is earning 4.00%+ APY instead of 0.01%, you can sit back and watch your balance grow.
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