Here's How Much You Can Make With $20,000 in a High-Yield Savings Account
- - Here's How Much You Can Make With $20,000 in a High-Yield Savings Account
Joel O'Leary, The Motley FoolJanuary 17, 2026 at 4:05 AM
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There's a wide range of APYs offered from bank to bank right now. Case in point: the national average savings interest rate sits at just 0.39% APY, while some online banks near the top of the list are offering rates closer to 4.00% APY. That's a difference of more than 10x.
If you have $20,000 in savings, the amount of interest you earn over a year depends heavily on where you keep it. Here's what those different rates look like in real dollars, and how to make sure your cash is earning as much as it reasonably can.
How much $20,000 can earn in a high-yield savings account
APY stands for annual percentage yield. This is the rate that determines how much interest your savings earns over a year, including compounding.
And that number varies widely depending on where your money sits.
To put things in perspective, the national average savings rate is currently about 0.39% APY. Some big traditional banks offer way lower than that level, while other online banks are offering rates closer to 3.00%-4.00% APY.
Here's how much a $20,000 balance would earn with those range of APYs over one year:
Interest Earned
0.39% (national average)
$78
3.00%
$600
3.50%
$700
4.00%
$800
Data source: Author's calculations.
That spread is why it's always worth comparing APYs across different banks before deciding where your savings should live.
Even a small bump in APY can noticeably increase what your savings earns over time.
This is exactly why it helps to revisit your savings account from time to time. Banks adjust their APYs regularly, and the gap between average and competitive is quite real. To peek at today's top APYs, compare our best high-yield savings account list here.
Why savings rates differ so much between banks
Most people assume savings rates are pretty similar from bank to bank. In reality, the differences can be massive, even for accounts that look identical on the surface.
The difference mostly comes down to business structure. Online banks don't have physical branches to maintain, and more modern tech that makes their business more efficient. This frees up money they can pass back to customers through higher APYs. Many also use promotional rates to attract new deposits.
Rates can also change quickly. As competition shifts and broader interest-rate trends change, banks adjust their offers. An account paying well today may not stay near the top forever, which is why flexibility matters.
Keeping an eye on rates helps ensure your savings doesn't quietly fall behind.
Benefits on an online high-yield savings account
High-yield savings accounts are pretty much like regular savings accounts, except they pay a much higher interest rate. Aside from the high APY, here are a few common features offered by online banks these days:
FDIC insurance up to $250,000 per depositor, per bank
No monthly fees or balance minimums
Easy transfers to and from checking accounts
Slick mobile apps that make managing savings easy
All this makes high-yield savings accounts the best place for emergency funds, short-term goals, and cash you want available while still earning competitive interest.
Even as rates ease, a high-yield savings account can still turn $20,000 into $600-$800 a year with very little effort.
If you've already done the hard work of building your savings, the next step is making sure it's parked somewhere that rewards you for it.
Explore our full list of top savings accounts and find a better home for your cash.
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