How much will a $40,000 high-yield savings account earn now (and is it worth it)?

Savers can easily grow their money with a high-yield savings account opened now. Richard Drury/Getty Images

The primary feature of a high-yield savings account isn't hard to determine. After all, it's right there in the name: high-yields.

And while these yields can be pretty low in cooler interest rate environments, as they were at the start of the decade, they can be impressively high as they were in recent years. It wasn't difficult, for example, to find rates on these accounts around 5.50% in early 2024. While those have since come down around one percentage point, the accounts can still be valuable for savers, especially when stacked against the 0.39% average rate traditional accounts now offer as an alternative.

But is it worth pursuing if you're looking to deposit a large amount of money, like $40,000 or so? And what would the interest earnings actually look like if you did open an account of that size? Below, we'll break down the answers to both of these questions, which are particularly important to understand now with interest rate cuts looming for this September.

See how much more interest you could be earning with a top high-yield savings account now.

How much will a $40,000 high-yield savings account earn now?

Calculating the interest you can earn with a high-yield savings account isn't easy to do nor can it be done with precision. That's because these accounts have variable interest rates that will change from time to time based on market conditions. Still, with upcoming rate changes expected to have a gradual impact on these accounts, at least in the beginning, savers can get an approximate idea of how much they stand to earn. 

Here's how much interest a $40,000 high-yield savings account can earn if opened now, calculated against today's top rate and on the assumption the rate remains constant over the next year:

• $40,000 high-yield savings account at 4.35% after three months: $428.08
• $40,000 high-yield savings account at 4.35% after six months: $860.74
• $40,000 high-yield savings account at 4.35% after nine months: $1,298.03
• $40,000 high-yield savings account at 4.35% after one year: $1,740.00

The interest-earning potential, here, is worth hundreds and potentially thousands of dollars. But the variable rate nature will need to be accounted for, as rates will fluctuate, particularly over an elongated period. That said, the interest you can earn and the security of keeping your money here versus an unpredictable stock market could be worth it.

Compare your top high-yield savings accounts here to learn more.

Is a $40,000 high-yield savings account worth it?

A high-yield savings account of this amount, can be valuable if you want to maintain access to your money while still earning a relatively high interest rate. But the returns here aren't so high that it clearly justifies skipping stock market investments. And, if you want to earn a high rate, have that rate fixed and not have to worry about rate changes still to come, a certificate of deposit (CD) account is a viable alternative. A $40,000 CD account enjoys almost identical interest-earnings with none of the stress associated with a variable rate. Weigh all of your options closely, then, to truly determine which is the right for you not only now, but into the future.

The bottom line

A $40,000 high-yield savings account can earn savers a significant amount of interest over a somewhat brief period of time. But with rates here variable and subject to decline and alternatives that have similarly high rates that will be fixed, savers will need to be strategic in their approach. 

Today's high rate climate appears to be on the precipice of major change so making the right decisions now for your money is arguably more important than it was even just six months ago. Make that decision with accurate information and realistic expectations, then, in order to enjoy continued financial success.