How Much Money Will I Have If I Invest $10,000 at 4.75% APY?
You work hard for your money, but it also needs to work for you. Therefore, you need to be cognizant about where you’re parking your savings.
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It’s easy to assume any reputable savings account is a good idea, but there’s more to it. Your funds will basically collect dust in a traditional savings account.
Sure, you could risk your hard-earned cash in the stock market in hopes of a hearty return. You could also open a CD with high interest rates, but you’d have to agree not to touch it until the maturity date.
Or you could just open a high-yield savings account. Find out what you have to gain by taking this route.
What is a High-Yield Savings Account?
Just as the name implies, a high-yield savings account is a type of savings account that offers better-than-average interest rates. This type of savings vehicle functions like a standard savings account, but with the potential to earn more money in interest.
Ideal for short-term savings, these accounts give you access to your funds at any time. This allows you to enjoy the best of both worlds — you’ll get higher interest payouts without having to risk your money. And you won’t put yourself in a situation where you might need your money but can’t access it without incurring a penalty fee.
Do note, a high-yield savings account might require you to make a higher initial deposit than with a traditional savings account. There might also be limits on the number of withdrawals and transfers you can make per month.
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How Much Money Will I Have If I Invest $10,000 at 4.75% APY?
If you’re shopping around for somewhere to put a sizable savings — say $10,000 — a high-yield savings account can be a wise choice. Using our savings calculator, here’s how much you’d earn on this amount at a 4.75% APY over the course of several years.
· One year: $475
· Three years: $1,494
· Five years: $2,612
· 10 years: $5,905
· 20 years: $15,298
If you’re sold on this idea, consider a savings account from Jenius Bankᵀᴹ. You’ll get a 4.75% APY¹ — that’s 10 times² the national average on a regular savings account — with no minimum balance requirements. You’ll pay zero fees on this account, and you can feel confident your money is safe, as deposits are FDIC-insured up to $250,000³.
How to Open a Jenius Account
Ready to start growing your money with a Jenius savings account? Opening an account takes just a few minutes, and you can do it all online. You’ll need to be at least 18 years old, have a Social Security number and a permanent U.S. address — residents of Hawaii and New Mexico are not eligible to open an account at this time.
You can link an external bank account and deposit money that way or set up direct deposit with your employer. Then, you’ll start earning interest immediately. Interest is compounded daily and paid at the end of each month.
Final Take
Choosing where to invest $10,000 is a big decision. There’s many factors to consider, including the amount of risk you’re comfortable taking and the level of access you need.
If you decide to open a new savings vehicle, a high-yield savings account is a great option. As long as you choose a bank that’s FDIC insured, there’s really no downside to this type of product.
You’re free to access your money if you need it, but you also have the ability to leave it in the account as long as you want. This is a risk-free way to earn interest, without having to make any sacrifices.
Enjoy earning interest on interest or withdraw your interest earnings — monthly, annually, whenever — and put this free money toward another financial goal. When you have a high-interest savings account, these choices are all yours to make.
Investment decisions should never be made lightly, so consider what’s best for your unique situation. Take the time to weigh the pros and cons, then make the choice that feels like it truly supports your financial goals for the future.
¹ Annual Percentage Yield (APY) as of 10/27/2023 and subject to change at any time.
² The national average rate is accurate as of 10/24/2023 from the FDIC National Rates and Rate Caps for Savings deposit products.
³ Jenius Bank is a division of SMBC MANUBANK. Member FDIC. FDIC insurance up to the maximum allowed by law. Deposits at Jenius Bank and SMBC MANUBANK are combined for the purpose of calculating FDIC insurance limits.
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This article originally appeared on GOBankingRates.com: How Much Money Will I Have If I Invest $10,000 at 4.75% APY?
