Here's how much interest a $12,000 high-yield savings account can earn now
Summary
Moving $12,000 from a traditional savings account to a high-yield savings account can earn much more interest. High-yield accounts currently offer about 4% interest, compared to the average 0.38% in regular savings accounts, potentially adding up to nearly $500 in interest over one year.Key Facts
- The national average interest rate for traditional savings accounts is about 0.38%.
- High-yield savings accounts offer roughly 4% interest, which is much higher.
- A $12,000 deposit in a high-yield account at 4.10% interest can earn around $121 in 3 months.
- After 6 months, the interest would be about $243 on the same amount.
- After one year, the interest could total approximately $492.
- High-yield savings accounts have variable rates that can change with market conditions.
- Interest earnings could increase if rates rise, but could also decrease if rates fall.
- High-yield savings accounts offer easy access to funds, unlike some investments.
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