Here’s Exactly How Much Money You’ll Have If You Invest $5,000 at 4.75% APY
Written by
Jennifer Taylor
Edited by
Nick Friedman
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There’s no shortage of places to invest your money. However, each option doesn’t offer equal benefits.
For example, you might put your funds in the stock market in hopes of a high return, but there’s always the risk of loss. Alternatively, if you’d rather play it safe, you could open a CD with a high interest rate, but you won’t be able to touch the funds without penalty until its maturity date.
Wouldn’t it be nice if you could open an account with high interest rates that also poses no risk to your money and provides full liquidity at all times?
Enter a high-yield savings account. Keep reading to learn the advantages of opening one:
Earn More With a High-Yield Savings Account
Just as the name implies, a high-yield savings account offers above-average interest rates. In most cases, you’ll receive a significantly higher rate than what’s attached to a traditional savings account.
For example, the national average yield for savings accounts is currently 0.47%, according to the FDIC.
Typically, high-yield savings accounts with the best rates come from online banks. Since they tend to have less overhead, these banks are able to offer more competitive rates.
How Much Money Will I Have If I Invest $5,000 at APY?
Searching for the right place to put $5,000? Milli Bank offers a savings account with a Annual Percentage Yield (APY), as of Feb. 29, 2024. Using our savings calendar, here’s how much interest you’d earn on $5,000 at APY over a multi-year timespan:
One year: $5,238
Three years: $5,747
Five years: $6,306
10 years: $7,953
20 years: $12,649
If these interest earnings look good to you, consider opening a high-yield savings account at Milli. Your account will have no minimum balance requirements or withdrawal limits, you’ll pay no fees and your money will be FDIC-insured up to $250,000.
How to Open a Milli Account
To open a high-yield savings account, you’ll need to download the Milli app. This is available for both iOS and Android.
You’ll need to provide standard verification information, including your name, address, date of birth and Social Security Number. Add money to your Milli account by linking another bank account, direct deposit or an ACH transfer from an external bank account.Â
Final Take
Where you invest your money is a big decision. Take the time to consider major factors like the level of risk you’re willing to take, desired liquidity and the level of customer service you need.
An all-around win, a high-yield savings account can keep your funds within reach while allowing you to collect an impressive amount of interest earnings. If this feels right, open a Milli savings account today and put your money to work.
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