Personal FinanceCanva | aldomurillo from Getty Images Signature and breeze393 from Getty ImagesMarc GubertiEarning money can help cover living expenses, but investing it can give you a nest egg that lasts a lifetime. While the average net worth in America is a little over $1 million, the median net worth of $192,700 paints a better picture of America’s finances. Using this number, we can calculate how much the average American can earn each year with a high-yield savings account.While you can put your money into stocks, a high-yield savings account is also worth considering. These accounts generate risk-free returns and steady cash flow that you can use to cover some of your expenses. Another perk with high-yield savings accounts is that the value doesn’t fluctuate. You can make a lot of money with stocks, but picking the wrong investments can set you back tremendously on your goals.The difference between a checking account’s APY and a high-yield savings account can result in thousands of additional dollars in your lifetime. Wondering how much extra money the average American can make in 2025 with one of these accounts? We’ll discuss how a .200% APY, 3.00% APY, and 4.00% APY can impact your finances.
It’s possible to earn more than $7,700 per year with a high-yield savings account.
The difference in long-term returns between 2.00% APY and 4.00% APY are tremendous, so make sure you find a savings account with a high APY.
Earn up to 4.5% on your money today (and get a cash bonus); click here to see how. (Sponsored)
How Much Can You Earn with 2.00% APY?sutlafk / iStock via Getty ImagesA 2.00% APY on a $192,700 balance results in an additional $3,854 per year. At the end of the year, you will end up with a $196,554 balance. While that’s a good improvement, it’s important to consider how compounded growth can accelerate your path to long-term financial goals. For instance, a 2.00% APY over the course of five years turns a $192,700 balance into a $212,756.37 balance. This extra money comes from zero additional work. You don’t have to monitor investments, follow the news, or work any additional hours. It’s extra money waiting to be collected.How Much Can You Earn with 3.00% APY?Vitalii Vodolazskyi / Shutterstock.comIt’s still possible to find high-yield savings accounts that yield above 3.00% APY. The Federal Reserve’s rate hikes have made these types of accounts more common. An influx of online banks also helps. These financial institutions can offer higher APYs since they don’t have to contend with as many overhead costs.A 3.00% APY on a $192,700 balance results in an additional $5,781 per year. That results in a $198,481 balance at the end of the year. After five years of a 3.00% APY, your $192,700 will turn into $223,392.11.It shows how mu