Earn 5.00% APY with a High-Yield Account | Wealthfront Cash (2024)

FAQs

Where can I get 5% on my cash? ›

If you deposit $1,000 into a high-yield savings account with a 4.5% APY, you'll earn just over $45 in interest after one year. At 5% APY, you'd earn about $51. If you deposit $1,000 into a high-yield savings account with a 4.5% APY at age 20, you'll earn almost $6,100 in interest by age 65.

Yes, 5% interest savings accounts are a legitimate offering that you can find at many banks and credit unions.

As long as you're banking with an FDIC-protected bank, you're not risking losing your money when you deposit it into a high-yield savings account. However, the rate of inflation can be higher than your APY, resulting in a negative real return, or the return after taxes and inflation are taken into account.

High-yield savings accounts

Another place you could park money and earn 5% or more, without risking your principal within applicable insurance limits, is a high-yield savings account. High-yield savings accounts can also let you move money in and out of your account more freely than CDs do.

As of September 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions offer high-interest checking accounts: Landmark Credit Union Premium Checking with a 7.50% APY and OnPath Credit Union High Yield Checking with a 7.00% APY.

Millionaires Like High-Yield Savings, but Not as Much as Other Accounts. Usually offering significantly more interest than a traditional savings account, high-yield savings accounts have blown up in popularity among everyone, including millionaires.

While $100,000 is a lot to have in your savings account, it could be the right move if you need that much for your emergency fund and upcoming savings goals. If you want to buy a house, then you may need that much or more saved for a down payment and other costs of homeownership.

Varo Bank High-Yield Savings Account: 5.00% APY

Varo Bank's HIgh-Yield Savings Account offers an attractive 5.00% APY on balances up to $5,000. Balances below this threshold earn 3.00% APY. There's no minimum balance required to get started and no monthly fees.

What happens if you put 50000 in a high-yield savings account? ›

If you deposit $50,000 into a traditional savings account with a 0.46%, you'll earn just $230 in total interest after one year. But if you deposit that amount into a high-yield savings account with a 5.32% APY,* your one-year interest soars to over $2,660.

By contrast, if you put $5,000 in an account with an interest rate of 5% that compounds monthly, the earnings would be $255.81. This works out to an APY of 5.12%. In our example, compounding accounts for $5.81 more interest per year than if you just use the simple interest rate calculation, which ignores compounding.

Limited growth. While you can grow your money with a high-yield savings account, it's not the best way to generate long-term wealth for retirement because the yield often doesn't keep up with inflation. As a result, working with a broker or robo-advisor to develop an investment portfolio is better for long-range plans.

Some disadvantages of a high-yield savings account include few withdrawal options, limitations on how many monthly withdrawals you can make, and no access to a branch network if you need it. But for most people, these aren't major issues.

The interest you earn on a high-yield savings account—or any other savings account, money market account or certificate of deposit, for that matter—is subject to state and federal income taxes.

According to BOE figures over £200m £5 notes are currently being dispensed in the UK each month. This is ten times the amount recorded in the summer of 2010. Further figures highlighted that over 5,000 ATMs -one in eight- were dispensing £5 notes last March.

How Does Cash Back Work at Walgreens? When checking out at the register, the card machine will ask you if you would like cash back. The options are $5, $10, $20 and none. Once you choose an amount, it will be added to the total of your purchase, and that amount will be given back to you in cash from the register.