So, you've saved $10,000 — now what? 5 smart moves to grow your money
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So, you've saved $10,000 — now what? 5 smart moves to grow your money
Yahia Barakah December 31, 2025 at 5:10 AM
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5 smart moves after hitting $10,000 in savings (Pekic via Getty Images)
Most Americans struggle with emergency savings. According to the Federal Reserve, 37% of adults couldn't cover a $400 unexpected expense using cash, savings or a credit card they'd pay off immediately. If you're starting 2026 with $10,000 in the bank, you're well ahead of that curve.
But where you keep that money matters. The Federal Reserve cut rates three times in 2025, which means the window for high savings yields is narrowing. High-yield accounts still offer solid returns, though rates have dropped from their 2023 peaks. On the flip side, falling rates create opportunities elsewhere, from cheaper borrowing costs to better investment timing.
Whether you're building your emergency fund, paying down debt or starting to invest, each option offers distinct advantages worth weighing carefully.
1. Open a high-yield savings account (HYSA)
High-yield savings accounts (HYSAs) are just like everyday accounts, but they pay out considerably higher annual percentage yields than your typical savings. How much higher? Well, some of today’s best HYSAs still offer APYs of around 3.50% — compare that to the 0.01% APY you’d get on a traditional savings account at big banks like Wells Fargo or Chase. Even as rates come down, high-yield accounts are worth it for their safe, long-term savings potential while keeping your money accessible when you need it.
How much more can I earn with an HYSA? The difference between an HYSA and a traditional account can be substantial. Placing $10,000 in a traditional savings account might earn you a single dollar after a year, while putting the same amount in a 3.50% APY HYSA could net you $350 after that same time. And the gap only grows larger from there, thanks to compound interest.
$10,000 at 3.50% APY
$10,000 at 0.01% APY
After 1 year
$350
$1
After 3 years
$1,087
$3
After 5 years
$1,877
$5
What should I look for when choosing an HYSA? When comparing HYSAs for myself, top of my list is the APY, but I also consider fees, minimum balance requirements and ease of access to my money. Online banks like SoFi offer rates of up to 3.60% APY — well above what traditional banks are paying out — passing along what they save on brick-and-mortar overhead to customers like you.
Learn more: How much should you keep in an high-yield savings account?
2. Lock in a high-yield CD
Certificates of deposit (CDs) are savings products offered by banks and credit unions at rates that can outearn high-yield savings accounts in exchange for leaving your money untouched for a specific term. You can find CDs ranging from three months all the way up to 10 years.
CDs are one of the best ways to prepare for lower interest rates ahead of future Fed rate cuts in 2026. And because the rates for CDs are fixed, it means your interest rate won’t change until your term expires.
What’s the benefit of locking in CD rates? Fixed rates are a special feature of CDs that savings accounts don’t offer. For example, if you open a 12-month CD at 3.50% APY, it earns the same yield for a year, no matter how many times the Fed might lower rates during its term.
How do I choose the right CD term length? Look for a term you're confident you won't need until your term matures to avoid paying an early withdrawal penalty. Better yet, spread your money across a number of CDs with different APY rates and terms, a strategy called CD laddering. For instance, you can put $2,000 in a six-month CD, $2,000 in a 12-month CD and so on, helping you to balance high rates and access to funds as your terms reach maturity.
Learn more: What to do when your CD matures: Your grace period — and 3 key options
3. Catch up on your retirement savings
Investing in your future is your key to long-term financial stability. The money you save up toward retirement typically receives tax advantages that no other form of investing offers. And the sooner you can start contributing to your future, the more time your retirement savings can grow.
What are the advantages of investing in retirement? For starters, if you contribute pre-tax dollars into a traditional 401(k) or IRA, you're able to deduct the funds you contribute from your taxable income today and only pay taxes on your future withdrawals. On the other hand, Roth 401(k)s and Roth IRAs let you contribute post-tax dollars today, but you avoid any income taxes on these contributions and their growth when you retire.
How much should I contribute to my retirement savings? Instead of adding a lump sum to your retirement savings, aim to spread your contributions over time by electing to save 15% of your income for retirement. This common guideline ensures that your savings grow steadily over time. Plus, it lets you invest your contributions at regular intervals regardless of whether the market is high or low. This strategy, known as dollar-cost averaging, tends to offer more stable returns over the long term.
Learn more: How I started investing with just $100 — and why you shouldn’t wait
4. Pay off high-interest debt
Interest charges you pay on car loans, credit card debt or personal loans can eat away the value of your savings. That’s why it’s a smart move to prioritize paying down high-interest debt with any extra money you have.
Two effective strategies for paying down high-interest debt are the debt snowball and debt avalanche methods. These debt strategies provide a simple structure to pay off what you owe across multiple credit accounts, one debt at a time. You list out your debts by either balance size or interest rate, depending on the method you choose, making minimum payments on all of them and focusing any remaining funds toward tackling the next debt in line until each of your debts are fully repaid.
What are the potential savings from early debt payoff? You can save quite a bit of money by paying your debt sooner. For example, a minimum $100 monthly payment on $5,000 in credit card debt at a 20.00% annual percentage rate (APR) will cost you a whopping $5,840 in interest alone. Increasing your payment to $500 monthly could cut your total interest to $515 — a savings of $5,325.
Should I use my money toward debt or high-yield savings? Putting your extra money toward high-interest debt can offer bigger financial rewards. Think about it this way: The interest you’d save by paying off a 7.00% APR auto loan will outweigh the interest you can earn with the best HYSAs on the market today.
Learn more: Top 5 debts to prioritize paying off before retirement
5. Use a robo-advisor to invest in stocks
Robo-advisors are investment platforms that use advanced algorithms to automate your investments and help you manage your financial plans. You're still in control of your money, but without the complexities of traditional investing or day trading. That’s why I chose robo-advisors like SoFi Invest Robo and Acorns when I began investing beyond my retirement plan.
How do I invest with a robo-advisor? When you set up your account with a robo-advisor, you’ll answer questions about your personal finances, goals and risk tolerance. The platform then uses your answers to put together a mix of exchange-traded funds (ETFs), mutual funds and other low-cost assets into a portfolio. These funds can cover hundreds or even thousands of stocks, bonds and other securities, minimizing the impact one or a few stocks can have on your portfolio. If you choose a low-risk profile, your robo-advisor will assign a higher percentage of your funds toward low-risk investments. But keep in mind that you can still lose money during market downturns.
How should I approach investing with a robo-advisor? Use dollar-cost averaging by transferring the same amount of money from your bank account to your robo-advisor account at regular intervals, instead of jumping in head first with a $10,000 lump-sum investment. Your robo-advisor automatically uses the money it receives to buy more shares when the market is low and fewer shares when the market is high. This helps balance your portfolio and mitigate the impact of market volatility.
Learn more: 7 best investment platforms with low fees and small minimums
Beyond $10,000 savings: Budgeting for long-term financial fitness
It’s just as important to learn how to maintain and grow your $10,000 savings through budgeting as it is to explore ways to put it to work. Setting up and sticking to a solid budget not only helps you protect your nest egg, but it also supports your long-term financial security.
Here are three key steps to strengthen your budget:
Simplify how you budget. Writing down every expense gets tedious pretty quickly. Nowadays, you have your choice of top budgeting apps to automate this process for you while protecting your data and privacy through advanced security features. These apps have made it so much easier for me to track my money, savings, retirement accounts and more in one place.
Stick with a tried-and-true budgeting strategy. You can find many budgeting strategies out there — from the 50/30/20 rule for needs, wants and savings to the no-budget budget for people who don’t want to worry about the details. Explore the best budgeting strategies to find one that fits with your income and spending, which will help you establish a consistent routine for your everyday finances.
Automate your savings. Take the guesswork out of how you save money by setting up regular transfers from your checking account to your high-yield account. Your money is easily accessible, just out of the way of your daily spending.
Work with a financial advisor. A financial advisor can help you manage your money as you plan for retirement, giving you peace of mind by assuring you that you’re on the right path. Start with our guide to finding a trusted retirement advisor.
Learn more: Saving vs. investing: Key differences for growing and protecting your money
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FAQs: Making the most of your $10,000 in savings
Here's what to know about leveraging your big money milestone. And take a look at our growing library of personal finance guides that can help you save money, earn money and grow your wealth.
Is $10,000 enough to start investing?
Yes, $10,000 is certainly enough to start investing. If you’re new to investing, a good starting point is to open a brokerage account and invest in low-cost index funds or ETFs that track the broader stock market. This approach won’t expose you to the risks of investing in individual stocks, like fluctuating prices. Plus, these low-cost funds offer lower fees compared to actively managed funds, which keeps more of your profits in your account. Keep in mind that all investments can lose value, so there’s always the potential you’ll lose money. Start with our editorial roundup of the best investment platforms for a range of investors — from beginners to active traders.
Are there any downsides to opening a high-yield savings account?
Potential downsides to opening an HYSA include limited accessibility when compared to checking accounts and variable rates that can adjust at any time.
If you’re looking for a low-risk, FDIC-insured investment with a guaranteed rate that won’t change, consider opening a CD instead.
You also want to avoid oversaving in your savings account. While an APY of 3.50% is competitive for an HYSA right now, many other investments can potentially yield you a much higher return over time. Many of the best investment platforms and online brokers allow you to invest in stocks, mutual funds and other investments, and they deliver significantly higher returns historically than savings accounts over the long term.
What happens to my bank account after I die?
What happens to your bank account when you die largely depends on whether you’ve named a beneficiary to receive your assets after you die or you share the account with a joint owner. Learn more — including tips you can take now to avoid complications down the road — in our guide to bank accounts and death.
Is $10,000 a good amount in savings?
Yes, saving up $10,000 is a great progress toward an emergency fund that can cover unexpected expenses. Experts advise setting aside enough money to cover three to six months’ of living expenses. If you have a family, more money on hand can be a safety net of support to bridge the gaps if you lose your source of income.
How can I improve the way I think about money?
When it comes to money, it's helpful to take a step back, acknowledge your emotions and weigh the risks and rewards for any money decision. Understanding the cognitive biases that may be fogging up your money mindset is a good place to start. You'll also want a budgeting strategy that aligns with your lifestyle and values to provide focus on your financial goals. And, finally, it's worth working with a trusted financial advisor that can help you manage your money as you plan for the long term — and give you peace of mind by assuring you that you’re on the right path.
Where is the best place to put $10,000 in savings?
Two of the best places to park your savings are high-yield savings accounts and money market accounts. Cash in these accounts grows by compounding interest on your initial balance and interest you’ve already accumulated, making them an ideal place for building an emergency fund. To set money aside specifically for medical needs, you might be able to set aside pre-tax money within a health savings account (HSA). If you’re saving for retirement, consider investing some of your money in a traditional IRA or Roth IRA. Find a trusted financial advisor who can help you create a solid long-term plan to steadily grow your money and improve your finances.
Editorial disclaimer: Information on this page is for educational purposes and not investment advice or a recommendation to buy any specific asset or adopt any particular investment strategy. Independently research products and strategies before making any investment decision.
About the writer
Yahia Barakah is a personal finance writer at AOL with over a decade of experience in finance and investing. As a certified educator in personal finance (CEPF), he combines his economics expertise with a passion for financial literacy to simplify complex retirement, banking and credit topics. He loves empowering people to make informed financial decisions that improve their everyday and long-term wellness. Yahia's expertise has been featured on FinanceBuzz, FX Empire and EarnForex. Based in Florida, he balances his love for finance with freediving, hiking and underwater photography.
Article edited by Kelly Suzan Waggoner
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Source: “AOL Money”
