How much can you make with today's top-earning savings accounts?
With inflation high and borrowing costs elevated due to increased interest rates, there aren't many attractive financial options available at the moment. And with a government shutdown looming, more economic chaos could be on the horizon. In times like these, savers understandably look for new ways to protect and grow their bottom line.
Two of the best ways to do this is by opening a certificate of deposit (CD) or high-yield savings account. Interest rates for both account types are higher than they've been in years, giving savers an opportunity to fight back against the economic pain caused by inflation.
To truly make this effective, however, it helps to know exactly how much you can make with today's top-earning savings accounts. Start by exploring your account options here to see how much more you could be earning now.
How much can you make with today's top-earning savings accounts?
If you're looking to beat inflation, there are a variety of high-yield savings and CD accounts that have interest rates more than 12 times the national average. And considering the average savings interest rate for a regular savings account is just 0.45% at the moment, you're likely losing money by keeping your funds there.
No matter how much you deposit into a high-yield savings account, however — be it $1,000, $5,000, $10,000, or more — you'll make more interest more quickly. But you need to be aggressive to earn the top rates, which likely will be found with an online bank. Here's how much you could make with today's top-earning savings accounts, broken down by amount and rate:
$1,000 deposit
- At 5.50%: $55 (for a total of $1,055 after one year)
- At 5.30%: $53 (for a total of $1,053 after one year)
- At 5%: $50 (for a total of $1,050 after one year)
Start earning more money with a top savings account here now.
$5,000 deposit
- At 5.50%: $275 (for a total of $5,275 after one year)
- At 5.30%: $265 (for a total of $5,265 after one year)
- At 5%: $250 (for a total of $5,250 after one year)
$10,000 deposit
- At 5.50%: $550 (for a total of $10,550 after one year)
- At 5.30%: $530 (for a total of $10,530 after one year)
- At 5%: $500 (for a total of $10,500 after one year)
Other considerations
The above accounts don't take compound interest into consideration, so you can potentially do even better than those figures. As mentioned, however, the best rates will almost always be with online banks and lending institutions. Because these banks don't have the overhead costs of maintaining physical branches, they're able to pass on those savings to account holders in the form of higher interest rates. So do your research and shop around online to see what you can find.
But don't just look at the interest rate. While higher interest rates are great, that extra money can quickly get eaten up by penalties and account maintenance fees. Ideally, you'll be able to find an account with an elevated interest rate with little or no fees or penalties, thus giving your money the best chance to grow.
The bottom line
With so few options to protect and grow your savings today, you shouldn't pass up the opportunity to do both with a high-yield savings account. As the above estimates show, you can make a lot more interest just by depositing some or most of your funds into one of these accounts. And with so many online lenders eager for your business, you can easily get started from the comfort of your own home now. Get started with a top-earning savings account now.
