The interest you’ll earn on $10,000 in one year depends on the savings account’s APY and how frequently interest is compounded. Let’s look at two hypothetical examples of interest earnings. We’ll assume both accounts compound interest monthly. The first has a 0.45% APY, and the second has a 5% APY.
The account with the 0.45% APY only earns about $45 on a $10,000 deposit in one year, but the account with the 5% APY earns about $500.