Best 5% Interest Savings Accounts of August 2024
Editor’s Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.
Despite the halt in interest rate hikes, high-yield savings accounts still offer around a 5% annual percentage yield (APY) — up from the pandemic-era rates of 1% and the highest since the 1990s.
We researched FDIC-insured savings accounts offering an APY of 5% — or close to it — and the minimum balances required to earn that attractive return. If your sole focus is to maximize your savings, these are the accounts to consider. (See our methodology below for more information on how we created this list.)
Compare offers to find the best savings account
Best for earning a high APY
My Banking Direct High Yield Savings Account
My Banking Direct is a service of Flagstar Bank, N.A., a Member FDIC.
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
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Offer checking account?
Pros
- Above-average APY
- No monthly fee
- Checking account available
Cons
- $500 minimum deposit to open account
- No physical branch locations
Best for low minimum deposit
Western Alliance Bank High-Yield Savings Account
Western Alliance Bank is a Member FDIC.
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
Up to 6 transactions each month
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Excessive transactions fee
The bank may charge fees for non-sufficient funds
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Overdraft fee
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Offer checking account?
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Offer ATM card?
Pros
- Strong APY
- Low minimum deposit required
- No monthly fees
Cons
- Bank may charge non-sufficient funds
- Doesn’t offer checking account or ATM access
- Accounts are opened and managed on Raisin.com
Best for ATM card
UFB Portfolio Savings
UFB Portfolio Savings offered by Axos Bank ® , a Member FDIC.
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Annual Percentage Yield (APY)
Up to 5.15% APY on any savings balance; add UFB Freedom Checking and meet checking account qualifications to get an additional up to 0.20% APY on savings
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Minimum balance
$0, no minimum deposit or balance needed for savings
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Fees
No monthly maintenance or service fees
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Overdraft fee
Overdraft fees may be charged, according to the terms; overdraft protection available
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ATM access
Free ATM card with unlimited withdrawals
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Maximum transactions
Pros
- Strong APY on any savings balance
- Get an additional up to 0.20% APY on savings when you add UFB Freedom Checking and set up direct deposit of $5,000 monthly, maintain minimum balance of $10,000 and make 10 debit card transactions per statement cycle.
- No minimum deposit or balance required for savings
- No monthly fees
- Free ATM card with unlimited withdrawals
- Free transfers between direct deposit accounts
- Online and SMS banking available
- Mobile check deposits
- Security features include fraud and anti-virus protection, SSL encryption for secure connection, automatic logouts after inactivity
Cons
- Potential overdraft fee, though overdraft protection is offered
- Certain types of withdrawals and transfers may be limited
- $10 excessive transaction fee per transaction over 6/month
- No physical branch locations
Who’s this for? For those savers on the go, UFB Portfolio Savings stands out for offering its users a free ATM card.
Standout benefits: Along with an ATM card, UFB Portfolio savers get a high 5.15% interest rate on all balance tiers with no cap, no monthly fees and no minimum deposit requirement.
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Best for money market account
CFG Bank High Yield Money Market Account
CFG Bank is a Member FDIC.
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Annual Percentage Yield (APY)
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Minimum balance
$1,000 minimum deposit; $1,000+ minimum balance to obtain APY
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Monthly fee
$10, with option to waive if account maintains minimum $1,000 balance
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Offer checks?
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Offer debit/ATM card?
Pros
- Above-average APY
- Option to waive monthly fee
- Physical branch locations
Cons
- Highest APY is only available on $1,000+ balances
- $1,000 minimum deposit
- $10 monthly fee
- No checking account features
Who’s this for? Though CFG Bank High Yield Money Market Account has “money market” in its name, it doesn’t offer any of the typical bells and whistles you find with a money market account, such as check-writing privileges, debit cards and ATM access; it instead functions like a savings account.
Standout benefits: There’s a $1,000 minimum deposit required to open CFG Bank’s High Yield Money Market Account and you must maintain the $1,000 minimum to avoid a $10 monthly fee and to earn a high 5.25% APY, with no cap. Though this is a higher minimum than others on this list, it essentially helps the saver at the end of the day; the higher one’s balance, the higher their interest earnings will be.
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Best for no fees
Bask Interest Savings Account
Bask Bank is a division of Texas Capital Bank, Member FDIC.
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
Up to 6 withdrawals or transfers per statement cycle
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Excessive transactions fee
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Overdraft fee
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Offer checking account?
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Offer ATM card?
Pros
- Strong APY
- No minimum balance or deposit
- No monthly fees
- Bask Mileage Savings Account also available: Earn 2 American Airlines AAdvantage® miles for every $1 saved annually
Cons
- No option to add a checking account
- No ATM access
1Annual Percentage Yields (APY) and Interest Rates shown are offered on accounts accepted by Bask Bank and effective per the dates shown above, unless otherwise noted. Annual Percentage Yield is variable and subject to change at any time. No minimum balance requirement and no monthly service charge. Must fund within 15 business days of account opening.
Who’s this for? The Bask Interest Savings Account offers a healthy APY, on top of zero monthly fees and no minimum requirements, making it the best choice for no fees. Just note that the bank may close your account if it remains unfunded for 15 business days.
Standout benefits: With Bask Interest Savings, you get 5.10% APY on any savings balance. Frequent travelers should consider the Bask Mileage Savings Account where they earn American Airlines AAdvantage® miles back instead: Earn 2.5 miles for every $1 saved annually. Savers can then use these miles for flights on American Airlines or any of its 20+ partner airlines.
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Best for no minimum deposit
Newtek Bank Personal High Yield Savings
Newtek Bank is a Member FDIC.
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle; transaction amount limits apply; withdrawals from your account can only be transferred to the original external funding source
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Excessive transactions fee
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Overdraft fee
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Offer checking account?
Only a business checking account
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Offer ATM card?
Yes, if have a Newtek checking account
Pros
- Strong APY
- No minimum deposit and low minimum balance
- No monthly fees
- Offers business checking account and ATM access
Cons
- Transfer limit
- Only offers a business checking account
- Mobile deposits on app only available for business accounts
Best for checking/savings combo
Laurel Road High Yield Savings®
Laurel Road High Yield Savings® is offered by KeyBank N.A., a Member FDIC.
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Annual Percentage Yield (APY)
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Minimum balance
-
Monthly fee
-
Maximum transactions
-
Excessive transactions fee
-
Overdraft fee
$20 per overdraft item when the end of day overdraft balance is greater than $20
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Offer checking account?
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Offer ATM card?
Yes, if have a Laurel Road checking account
Pros
- Strong APY
- No minimum balance
- No monthly fees
- Option to add a checking account with ATM access
- Known for student loan refinancing
Cons
- Overdraft fee
- No physical branch locations
Best for easy access to your cash
Panacea High-Yield Savings Account
Panacea Financial is a Division of Primis, a Member FDIC.
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
There are no restrictions on number of withdrawals per month from savings account
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Excessive transactions fee
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Overdraft fee
-
Offer checking account?
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Offer ATM card?
Yes, if have a Panacea checking account
Pros
- Strong APY
- No minimum balance
- Minimum deposit is low
- No monthly fees
- Unlimited transactions
- No overdraft fee
- Option to add a checking account with ATM access
Cons
- Minimum deposit required to open account
- No physical branch locations
Best for smaller balances
Mango Prepaid Mastercard® savings feature
Metropolitan Commercial Bank is a Member FDIC.
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Annual Percentage Yield (APY)
6.00% APY on up to $2,500 if make signature purchases of $1,500 or more and have a minimum balance of $25 at the end of the month (after, 0.10% APY for balances over $2,500; $5,000 cap)
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Minimum balance
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Monthly fee
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Maximum transactions
Up to 6 transfers out each month and transfer amounts to savings apply
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Excessive transactions fee
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Overdraft fee
-
Offer checking account?
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Offer ATM card?
Yes, offers prepaid debit card
Pros
- Strong APY
- Low minimum balance
- No monthly fees
- Offers prepaid debit card with ATM access
Cons
- Savings feature only available to Mango cardholders
- Cap on earning high APY
- High APY has requirements
- Low APY for balances over $2,500
- No option to add a checking account
Who’s this for? Mango Savings offers the highest APY we found, but only on a small(er)-sized balance.
Standout benefits: Cardholders of the Mango Prepaid Mastercard® (issued by Metropolitan Commercial Bank) have access to a savings feature where they can earn up to 6.00% APY on balances up to $2,500 by meeting two requirements:
- Make a minimum deposit of $25 and have that minimum balance at the end of the month
- Make signature purchases of $1,500 or more on the Mango Prepaid Mastercard each month
For savers that max their balance to $2,500, that’s $150 in interest earnings in a year — which is why we ranked this account the best for making a small deposit (up to $2,500). The APY thereafter is a low 0.10% APY over $2,500, or 2.00% APY for accounts with a $25 average daily balance and signature purchases between $750 and $1,499.99. Regardless, though, we’d recommend shifting other savings beyond the $2,500 to a high-yielding bank account that can get you more than even the 2.00% APY.
The Mango Card has a $5 monthly fee that can be waived if you have $800 or more in direct deposits.
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Best if you want extra help saving
Varo Savings Account
Bank Account Services are provided by Varo Bank, N.A., Member FDIC.
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Annual Percentage Yield (APY)
Begin earning 3.00% APY and qualify to earn 5.00% APY if meet requirements
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Minimum balance
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Monthly fee
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Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle
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Excessive transactions fee
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Overdraft fee
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Offer checking account?
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Offer ATM card?
Yes, if have a Varo Bank Account
Pros
- Strong APY and option to earn even higher
- No minimum deposit and low minimum balance
- No monthly fees
- Option to add a checking account with ATM access
- Offers 2 programs to help automate your savings
Cons
- Have to meet requirements to earn higher APY
- Cash deposits are only available through third-party services, which charge a fee
Who’s this for? For those who need tools to help them save more, online bank Varo offers two programs that automatically transfer money from their checking account to their savings account: 1) Save Your Pay, which transfers a percentage of the account holder’s paycheck into their savings, and 2) Save Your Change, which rounds up the account holder’s checking account transactions to the nearest dollar and transfers the difference to their savings.
Standout benefits: The Varo Savings Account has no monthly fees and users can qualify to earn 5.00% APY on balances up to $5,000 by meeting two requirements:
- Receive $1,000 or more in direct deposits per month
- End the month with a positive balance in both their Varo Bank Account and Varo Savings Account
For savers that max their balance to $5,000, that’s $250 in interest earnings in a year. Varo savers earn 3.00% APY on any additional balance over $5,000 (which is still pretty decent) and there is no minimum balance required to earn this standard 3.00% APY.
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Best for larger balances
CIT Bank Platinum Savings
CIT Bank is a division of First-Citizens Bank & Trust Company, a Member FDIC.
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Annual Percentage Yield (APY)
5.00% APY on balances of $5,000 or more; balances less than $5,000 earn 0.25% APY
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Minimum balance
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Monthly fee
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Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle
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Excessive transactions fee
$10 per transaction up to $50 per month
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Overdraft fee
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Offer checking account?
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Offer ATM card?
Yes, if have a CIT Bank checking account
Pros
- Strong APY
- Minimum deposit required is low
- No monthly fees
- No overdraft fee
- Option to add a checking account with ATM access
Cons
- Only earn high APY on balances of $5,000 or more
- $100 minimum deposit
- Excessive transactions fee
- No physical branch locations
Who’s this for? The CIT Bank Platinum Savings offers 5.00% APY on balances of $5,000 or more — making it the best option for savers with a larger amount of cash to deposit. Balances of less than $5,000 earn just 0.25% APY, which is why we only recommend this account for savers with at least $5,000 to put in the bank.
Standout benefits: CIT Bank’s Platinum Savings has a $100 minimum opening deposit, which is easy to reach when depositing $5,000, and no monthly fees.
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Compare offers to find the best savings account
More on our top interest savings accounts
My Banking Direct High Yield Savings Account
My Banking Direct is an online financial service of Flagstar Bank, N.A. It offers a high-yield savings account, a checking account with a free debit card and no overdraft or monthly fees, plus a specialty five-month CD.
APY
5.45% APY
Minimum balance
$500 minimum deposit
Monthly fee
None
Western Alliance Bank High-Yield Savings Account
Western Alliance Bank savings products are powered by Raisin, which means that savers’ accounts are opened and managed on the Raisin.com platform. The platform manages customers’ deposits and withdrawals, bank statements, as well as customer service.
APY
5.27% APY
Minimum balance
$1 minimum deposit
Monthly fee
None
UFB Portfolio Savings
UFB Direct is the online division of Axos Bank®. In addition to offering a high-yield savings account, UFB also offers a checking account that can boost your savings rate, a money market account and home loans through Axos.
If you’re an existing UFB customer, note that the bank sometimes changes the name of its savings accounts when it raises the APY, and it does not automatically enroll existing customers into the new account. Any time UFB increases the APY on an account, customers should contact the bank to make sure they’re enrolled in the account offering the best APY.
APY
5.15% APY
Minimum balance
None
Monthly fee
None
CFG Bank High Yield Money Market Account
CFG Bank is an online-only bank. It offers both commercial and personal banking products, the latter including its high-yield money market account, CDs with varying terms and a checking account with debit card access and out-of-network ATM reimbursement.
APY
5.25% APY
Minimum balance
$1,000 minimum deposit and $1,000 minimum must be maintained to earn high APY
Monthly fee
$10 per month, unless you maintain a $1,000 minimum balance
Bask Interest Savings Account
Bask Bank is a division of Texas Capital Bank, but operates completely online. Along with its high-yield savings account, Bask also offers four different CD terms and a Bask Mileage Savings Account where you can earn 2.5 American Airlines AAdvantage® miles for every $1 saved annually.
APY
5.10% APY
Minimum balance
None
Monthly fee
None
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Newtek Bank Personal High Yield Savings
Newtek Bank is formerly National Bank of New York City (NBNYC); it had been acquired and rebranded as a part of NewtekOne. Its one branch is in Miami, FL. Newtek offers banking for both businesses and individuals. In addition to consumers having access to a high-yield savings account, there are also seven different CD terms available.
APY
5.25% APY
Minimum balance
$0.01 to earn interest
Monthly fee
None
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Laurel Road High Yield Savings
Laurel Road is the digital banking arm of KeyBank and is widely known for its student loan refinancing services. Other consumer services it provides along with a high-yield savings account are checking and savings accounts that help you lower your student loan refinancing rate, rewards checking, a cash-back credit card that can go toward your student loan repayment, plus home loans and personal loans.
APY
5.15% APY
Minimum balance
None
Monthly fee
None
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Panacea High-Yield Savings Account
Panacea Financial is digital banking catered to those working in the healthcare industry and their families. Panacea offers personal loans and student loan refinancing for those in the medical, dental or veterinary fields, mortgages for doctors, as well as loans for those starting their own medical practice and insurance for doctors. It also has both personal and business bank accounts, as well as high-balance deposit accounts where you can get more FDIC insurance.
APY
4.50% APY
Minimum balance
$25 minimum deposit
Monthly fee
None
Mango Savings
Mango Financial is online-only and stands out for those who are unbanked with its prepaid debit card access. Cardholders also get access to Mango’s savings feature with a high APY up to a certain limit.
APY
Up to 6.00% APY on balances up to $2,500
Minimum balance
- Make a minimum deposit of $25 and have that minimum balance at the end of the month
- Make signature purchases of $1,500 or more on the Mango Prepaid Mastercard (issued by Metropolitan Commercial Bank) each month
Monthly fee
$5 per month for the Mango Card, with the option to waive if you have $800 or more in direct deposits
Varo Savings Account
Varo Savings is a part of Varo Bank, which is an all-mobile national bank. In addition to its bank account offerings, Varo also has a credit builder card (no credit history required), cash advances and a tax filing service to offer customers.
APY
Up to 5.00% APY on balances up to $5,000
Minimum balance
- Receive $1,000 or more in direct deposits per month
- End the month with a positive balance in both Varo Bank Account and Varo Savings Account
Monthly fee
None
CIT Bank Platinum Savings
CIT Bank is an online division of First Citizens Bank, which has 500+ branch and ATM locations. CIT offers personal, custodial and trust accounts and its products include savings and checking, money market and CDs.
APY
5.00% APY on balances of $5,000 or more
Minimum balance
$100 minimum deposit
Monthly fee
None
How to choose a 5% interest savings account
When choosing a 5% APY savings account, be mindful of the fine print. Banks tout above-average APYs that often come with caveats.
Typical conditions might include a cap to how much you can earn the high APY on; for instance, earning 5% APY but only on a balance up to $1,000. This can limit your interest earnings so you really can only maximize your savings so much.
Another condition may be requiring a high minimum deposit to open a 5% APY account or to earn interest. Just make sure that the minimum is an amount you were planning to put into a savings account originally.
How to apply for a 5% interest savings account
To apply for a 5% APY savings account, go to the website of the account you wish to open. Most savings accounts take not even 10 minutes to apply and just require a government-issued ID like a passport or driver’s license, Social Security number, address, contact information, date of birth and a checking account routing number to deposit money.
Navigating varying high-yield savings rates
This list is a good place to begin your search for a high-yield savings account offering one of the most attractive returns on your cash. You can’t go wrong with any of these accounts when it comes to earning a good return as they are all in the ballpark range around 5% APY, give or take. Navigate the varying rates by focusing on what else is most important to you — maybe it’s an account with easy access to your cash, one with an ATM card or one that has tools to help you save more.
Alternatives to 5% savings accounts
If a 5% savings account isn’t for you, consider other savings vehicles that offer competitive returns like CDs or money market accounts — the former rewards you with a fixed rate for locking up your funds for a fixed amount of time and the latter offers checking account privileges so you can more easily access your funds.
If you’re willing to take on some risk, you can also invest in the market through low-cost index funds, which diversify your money in all different companies. Though the market offers more risk, there are potentially better returns.
FAQs
What does APY mean?
APY stands for “annual percentage yield,” and it’s basically defined as the amount of interest an account earns in a year.
What high-yield savings account has the highest APY?
Currently, the My Banking Direct High Yield Savings Account (listed above) stands out as offering one of the highest interest rates, at 5.45% APY, with no cap and zero monthly fees. There’s a $500 minimum deposit to open an account.
What APY do other banks offer?
Banks offering high-yield savings accounts have rates ranging from 3% to 5% APY. But this is just for high-yield accounts. Traditional savings accounts offer APYs that are more in line with the national savings average of below half of 1%, or even less.
Can you get a 5% APY?
Savers can find more and more accounts these days offering around 5% APY to stay competitive with other banks. To get 5% interest on your savings, this list is a good place to start.
Can you lose money in a high-yield savings account?
There’s a near-zero risk of capital loss when you open a savings account at an FDIC-insured bank, as your account is insured for up to $250,000. Interest rates may decrease, but your cash will not. Theoretically, your money would lose value if the inflation rate is higher than your APY, but that’s no different than a traditional savings account. So, opening a high-yield savings account is safe and worth considering.
Is 5% interest on a savings account worth it?
5% interest on a savings account is worth it, especially when you compare it to what you’d otherwise earn on a more traditional savings account with returns more in line with the national average of below half of 1%.
What is a 5% savings account?
A 5% savings account is a high-yield savings account that earns at least a 5% annual percentage yield (APY).
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Our methodology
All of the accounts included on this list are FDIC-insured up to $250,000 per depositor. Note that the rates and fee structures for interest savings accounts are not guaranteed forever; they are subject to change without notice and they often fluctuate in accordance with the Fed rate. Your earnings depend on any associated fees and the balance you have in your interest savings account. To open an account, most banks and institutions require a deposit of new money, meaning you can’t transfer the money you already had in an account at that bank.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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