How much can a $10,000 traditional savings account earn now (and is it worth opening)?

While it may be tempting to take a large, five-figure amount such as $10,000 and put it into stocks, bonds or real estate, the reality is that the economy is hard to predict right now. 

Placing it into any of those investments comes with risks many would understandably prefer to avoid worrying about. That was emphasized Thursday morning when the latest inflation reading showed it ticking up again in August, now to 2.9%. That’s almost a full percentage point where the Federal Reserve wants it, adding a layer of uncertainty to monetary policy and, thus, the interest rate climate overall.

In this atmosphere, many savers may feel most comfortable by just putting their $10,000 into a traditional savings account, kept to the side for emergencies and unexpected expenses. Before they do, however, they should calculate the interest-earning potential they can secure with such an account. 

The interest rate climate, after all, remains elevated, offering savers an opportunity that may not last much longer. So, how much can a $10,000 traditional savings account earn now? And, with multiple high-rate alternatives, is it worth opening? Below, we’ll examine the answers to both of these critical questions.

Start by seeing how much you could be earning with a top high-yield savings account here.

How much can a $10,000 traditional savings account earn now?

Whether you currently have your money in a traditional savings account or are considering making a five-figure deposit into one now, it’s important to first understand the interest-earning potential. But with a traditional savings account, which is accompanied by an average rate of just 0.39%, according to the FDIC, there won’t be much interest to earn. And, since that rate is variable and likely to decline alongside predicted rate cuts, the interest-earning capability can diminish further. 

Here, then, is what a $10,000 traditional savings account can earn now, assuming today’s rate remains the same for an extended period:

• $10,000 traditional savings account at 0.39% after three months: $9.74
• $10,000 traditional savings account at 0.39% after six months: $19.48
• $10,000 traditional savings account at 0.39% after nine months: $29.24
• $10,000 traditional savings account at 0.39% after one year: $39.00

So, not only are returns here less than $40.00 in one year, but those returns aren’t reliable as rates can and likely will adjust downward, especially over an elongated period. And, with the inflation rate close to 3% now, you’re not even keeping pace and are essentially losing money, no matter the deposit amount, by maintaining it in a traditional savings account.

See how much more you could be earning with a top CD account instead now.

What about CDs and high-yield savings accounts?

Instead, it’s much more beneficial to deposit $10,000 into a certificate of deposit (CD) or a high-yield savings account now. You’ll earn hundreds of dollars more with either option currently. And, with a CD in particular, those returns will be predictable and safe, thanks to the account’s fixed interest rate. 

Still, these accounts won’t be immune to any Fed rate-cutting action, so it makes sense to act quickly. And, if you can afford to part with your money for the full term, a CD could offer considerable interest-earning opportunities right now.

The bottom line

A traditional savings account, even with a robust initial deposit of $10,000, comes with minimal interest-earning potential for savers now. And with rate cuts on the horizon, this account type should generally be avoided. Fortunately, there are still high-rate alternatives like CDs and high-yield savings accounts to explore. That said, a cooling rate climate will cool the potential rates on all savings vehicles, even if it doesn’t do so equally. So, if you’re looking for a place to park $10,000 right now, it makes sense to shop around for high-rate accounts while you can still locate them.