• Thu. Apr 18th, 2024

5% Interest Savings Accounts – Where You Can Get 5% on Your Savings Nationally

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The best high-yield savings accounts pay well above the average savings account rate of 0.47% APY (Annual Percentage Yield). In fact, 5% savings accounts are now available at numerous financial institutions. This means a savings account paying 5% APY allows you to earn 5% on money kept in the account over the course of a year.

We’ve compiled a list of banks and credit unions where you can find savings accounts that pay at least 5% APY.

Savings accounts with at least 5% interest

The following list includes 26 online banks, credit unions, and investing platforms with savings accounts offering at least 5% interest. However, be mindful of specific opening requirements at select financial institutions.

Digital FCU is limited to people who live in select areas of Massachusetts, live in a New Hampshire participating condominium community, work for a Select Employer Group, or belong to a local participating organization. Ivy Bank is available to anyone in the United States except California residents.

All accounts listed are federally insured by the FDIC or NCUA for up to $250,000 per depositor. Federal insurance protects consumer’s insured deposits if a bank fails. 

*M1 Plus Membership has a $10 monthly or $95 annual fee. This is the only savings account on the list with monthly fees.

What to look for in a 5% interest savings account

When comparing 5% interest savings accounts, think about which features you prioritize most. Consider the following factors to help determine the right option for you:

  • Opening requirements: See how much money you need to open an account. If you’re looking at credit unions, check if you’re eligible for membership. 
  • Interest rate requirements: Some savings accounts have certain requirements to qualify for the highest interest rate, or have a tiered interest rate system where the rate will change for various account balances. Review the criteria for earning interest.
  • Fees: Common fees for savings accounts include monthly bank maintenance fees, bank paper statement fees, and excess withdrawal fees. View the schedule of fees if available online, or call a bank to learn about fees.
  • Online/mobile banking: Find out if the bank has mobile or online banking services. Also, review mobile app ratings in the Google Play or Apple Store.
  • Additional features offered: Some savings accounts come with unique features, like ATM cards or savings goal features. If these matter to you, prioritize a savings account with these perks.
  • Other banking options: If you’re considering opening other bank accounts with the same company, you might prefer an online bank or a credit union. Investing platforms typically do not offer many bank account options.

5% interest savings FAQs

Yes, you can get 5% or more on a savings account.

Multiple banks offer 5% on a savings account, such as Varo Bank and CIT Bank. Investing platforms like Betterment and Wealthfront also have 5% savings accounts for new customers.

You can earn 5% or more with several savings accounts, including the Milli Savings Account, Betterment Cash Reserve, Newtek Bank High Yield Savings Account, and more. You can also earn above 5% with several accounts through Raisin, an online savings marketplace that sets you up with high rates from partner banks.

If you deposit $10,000 into a savings account paying 5% APY, you’d earn a little over $500 in interest after one year.

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