How Much Interest $10,000 Earns in a Year

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Perhaps you recently moved $10,000 out of the stock market or away from an underperforming investment, or maybe you tucked that money into an emergency fund. Either way, you need that money to keep earning more for you.

Consider putting that $10,000 in an interest-paying account. How much you earn depends on the financial asset and institution that you choose. There are four financial assets to consider when determining how much interest $10,000 can earn in one year: Series I savings bonds, certificates of deposit (CDs), high-yield savings accounts and money market accounts.

How Much Interest Does $10,000 Earn in a Year?

If you have $10,000 to leave in a CD, high-yield savings account, money market account or Series I savings bond this year and interest rates remain high — 3.00% to 6.89% annual percentage yield (APY) — you can earn from $300 to almost $700 in interest over the next 12 months. Here’s a look at the current interest rates of these assets.

Series I Savings Bonds

Series I savings bonds, issued by the U.S. Government, are financial securities that earn a variable inflation rate set twice each year and a fixed rate of interest. The combined rate is currently 6.89% for bonds issued between Nov. 1, 2022 and April 30, 2023.

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Put $10,000 into I bonds and you can earn almost $700 this year — assuming the bond’s variable inflation rate remains roughly the same.

CDs

Many financial institutions are currently offering attractive CD rates. If you invest $10,000 in a 1-year CD, you can earn between 4.15% and 5.00% — the equivalent of $415 to $500 — depending on the bank or credit union.

The advantage of CDs is that your APY is guaranteed for a fixed term — unlike with other accounts and bonds, which change their rates as the fed rate rises and falls.

High-Yield Savings Accounts

If you put $10,000 into a high-yield savings account, you can earn from $300 to $420 in a year — assuming your variable high-yield savings rate remains above 3.00%. Several banks are offering rates between 3.40% and 4.20% APY.

Money Market Accounts

Money market accounts are earning slightly less than high-yield savings accounts. However, some currently have an interest rate from 3.20% to 3.45%. So, your $10,000 can earn as much as $320 to $345 in interest this year.

Takeaway

The good news is that you have several options for earning at least 3.00% in interest. You’ll have easier access to your funds with a money market or high-yield savings account, but you’ll typically earn less than if you put your money into CDs or I bonds. Before choosing a financial asset or institution, consider fees, withdrawal limitations, penalties and interest rates.

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FAQ

  • What is the interest on $10,000 per month?
    • With a money market or high-yield savings account, a 3.00% to 3.75% interest rate on $10,000 will earn you about $25 to $30 monthly until you withdraw your money.
  • How much interest can $100,000 earn in a year?
    • If you put $100,000 in CDs, high-yield savings or a money market account for a year, you could earn anywhere from $3,000 to $5,000 based on current interest rates.
    • However, you cannot purchase $100,000 per year in I bonds.
  • How do you earn 10% interest in a year?
    • While you cannot currently earn 10% interest on a bank account in the U.S., you might see 10% returns investing in the S&P 500 or other blue chip stocks. However, these returns aren't guaranteed you might end up losing money if the market turns down.

Information is accurate as of Feb. 21, 2023, and is subject to change.

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