Personal Finance Banking Savings
Written by Sophia Acevedo; edited by Sarah Silbert
Updated
- Savings accounts with at least 5% interest
- What to look for in a 5% interest savings account
- FAQs
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The best high-yield savings accounts pay well above the average savings account rate of 0.45% APY (Annual Percentage Yield). In fact, 5% savings accounts are now available at numerous financial institutions. This means a savings account paying 5% APYallows 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.
Best 5% interest savings accounts
The following list includes over 20 online banks, credit unions, and investing platforms with savings accounts offering at least 5% interest. If a specific institution has certain requirements for earning 5% APY, we explain the limitations, below.
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.
| Savings Account | APY |
DCU Primary Savings Account | 6.17% APY on up to $1,000; 0.15% APY on balances above $1,000 |
My Banking Direct High Yield Savings Account | 5.55% APY |
5.50% APY for new customers' first three months, then 5.00% | |
5.35% APY | |
Ivy Bank High-Yield Savings Account | 5.30% APY on balances of $2,500 or more; 0.05% APY on balances under $2,500 |
5.27% APY | |
5.26% APY | |
Newtek Bank Personal High Yield Savings Account | 5.25% APY |
5.25% APY | |
Popular Direct Savings | 5.20% APY |
5.15% APY | |
Laurel Road High Yield Savings® | 5.15%APY |
Bank5 Connect Jumbo Savings Account | 5.10% APY |
Bask Bank Interest Savings Account | 5.10% APY |
BMO Alto Online Savings Account | 5.10% APY |
Primis Savings Account | 5.07% APY |
| EverBank Performance℠ Savings | 5.05% APY |
5.01% APY | |
5.00% APY on balances of $5,000 or more; 0.25% APY on balances under $5,000 | |
ONE account | 5.00% APY on savings balances up to $250,000 when you receive $500 per month in eligible direct deposits or have a daily balance totaling $5,000 or more |
5.00% APY on balances up to $5,000 if you receive direct deposits totaling $1,000 per month and maintain a positive account balance; 3.00% APY on the remaining balance |
How to Qualify for a 5% Interest Rate
To earn 5% APY on a savings account, you might need to meet certain requirements on a monthly basis. Here are the most common qualifications needed to qualify for 5% APY on a savings account.
Balance Requirements
Some savings accounts have a tiered interest rate based on your account balance. This means your interest rate can differ depending on how much money you maintain in your account.
Typically, the best 5% interest savings accounts offer a higher interest rate for lower account balances and reduce the interest rate significantly if you keep a high account balance. If you maintain a high account balance, you might prefer a bank account that offers the same APY regardless of your account balance.
Direct Deposit Requirements
Direct deposit requirements are another requirement that's often listed for savings accounts with tiered interest rates. Direct deposits must be received monthly, or you might earn a lower interest rate for that month.
Banks will specify which direct deposits are considered "eligible" to qualify for savings rate perks. Usually, payroll and government benefits are considered eligible direct deposits. The amount you must deposit will also vary depending on the institution.
Promotional Periods
You might also find savings accounts that temporarily offer a higher interest rate for the first few months of opening an account. These offers are to attract new customers who are considering opening a new bank account.
Membership Eligibility
To open a high-yield savings account at a credit union, you must be a credit union member. Some credit unions, like Digital First Credit Union, limit membership eligibility to customers who live in a certain area, work at a participating employer, or belong to a local participating organization.
Although not as common, banks may also limit who is eligible to open a bank account. From our list, Ivy Bank doesn't permit California residents to open a bank account.
Pros and Cons of 5% Interest Savings Accounts
Pro: High APY
Pro: Growth Potential
Pro: Financial Security
Con: Potential Rate Changes
Con: Limited Accessibility
Con: Fees
Is a 5% Interest Savings Account Right For You?
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.
Tips for Maximuming Your 5% Interest Savings
Set up automatic transfers
Review interest rates
Consider other savings options
5% interest savings FAQs
Are 5% interest savings accounts legitimate?
Yes, 5% interest savings accounts are a legitimate offering that you can find at many banks and credit unions. One way to make sure your money is secure is to check that the account is protected by FDIC or NCUA insurance. These government agencies protect up to $250,000 in an individual bank account if there's a bank failure.
How do I find the best 5% interest savings account?
Before you open a savings account paying 5% interest, take the time to review the account's features and fees. You also want to compare options from various financial institutions to find the best fit.
Will the 5% interest rate last forever?
No, savings account interest rates can change at any time. Savings rates are influenced by changes in the federal funds rate. The savings rate forecast for 2024 indicates that rates could drop later in 2024, although the exact time and pacing that rates will decline will vary depending on the Fed's decisions and bank's own individual criteria for setting interest rates.
Where can I get 5% interest on my savings?
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.
How much interest will $10,000 earn in a 5% savings account?
If you deposit $10,000 into a savings account paying 5% APY, you'd earn a little over $500 in interest after one year.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She is a banking expert, and has about three years of experience reviewing banking products and analyzing savings and CD trends.Sophia oversees Personal Finance Insider's banking vertical. She edits and writes bank reviews, banking guides, and banking, budgeting, and savings articles for the Personal Finance Insider team.Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services »Below are links to some of her most popular stories:
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Top Offers From Our Partners
SoFi Checking and Savings Earn up to 4.60% APY on savings balances and up to a $300 bonus with qualifying direct deposit. FDIC Insured. There is no minimum direct deposit amount required to qualify for the 4.60% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. To earn the $300 bonus, the customer must complete a direct deposit with a minimum initial deposit of $250 in a new SoFi Checking and Savings account within 45 days of clicking to qualify (offer expires 12/31/24).
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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