As interest rates continue to drop, getting the most out of your savings is key. And if you're trying to grow your savings this year, it's important to choose an account that won't lose value to inflation.
A high-yield savings account (HYSA) continues to be one of the best places to keep your cash protected against market volatility while earning a competitive interest rate on your balance. Even though rates are falling, the best high-yield savings accounts still earn upwards of 4% APY.
So, how much interest could you earn this year with an HYSA? Here's a look at your potential interest earnings by 2027, based on the account and rate you choose.
Today, the national average savings account rate is just 0.39%, according to the FDIC. However, rates vary widely across banks -- and you could earn as much as 10 times the national average by choosing the right savings account.
Keep in mind that there may be certain requirements you need to meet to earn the highest rate, such as maintaining a minimum balance or direct depositing a certain amount to your account every month. Many HYSAs, however, offer high rates with no strings attached.
HYSA rates are variable, meaning they can change at any time. This makes it impossible to predict exactly how much you can earn with an HYSA by 2027. However, you can make estimations based on today's rates.
Assuming interest rates remain stable through the end of the year, the following table shows how much you could earn with an HYSA by 2027 based on different APYs and balances.
These calculations assume you start saving on April 1, 2026, you don't make any additional deposits or withdrawals, and interest compounds daily.
As the numbers show, saving $10,000 over nine months in an HYSA can make a difference of around $275 compared to an average savings account. And the longer you save, the more dramatic this difference becomes.
If you don't already have anHYSA -- but you're ready to earn more on your savings -- use these tips to help you find the best rates:
High-yield savings accounts are a helpful tool for growing your savings, but they're not the only option. Here are some alternatives to HYSAs that may cater to your different needs and priorities.
Unlike HYSAs, certificates of deposit (CDs) are fixed-rate time deposit accounts. This means you earn a guaranteed rate of interest on your balance, as long as you don't touch your money for a set period of time.
CDs offer predictability and are especially advantageous when interest rates are expected to drop. But they're much less flexible than other savings accounts, as they penalize early withdrawals.
Money market accounts blend the features of savings accounts and checking accounts. They generally earn competitive interest rates, often on track with those of HYSAs, but they also may come with a debit card or check writing abilities. However, money market accounts may require a larger initial deposit and higher minimum balance.
Though it's less common, some checking accounts pay competitive interest on your balance. While checking and savings accounts serve different purposes, and one can't necessarily replace the other, it doesn't hurt to earn a little interest on your checking account balance.
Keep in mind these accounts may have certain requirements you need to meet to earn the posted interest rate.