Best 5% Interest Savings Accounts of August 2024

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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.)

Table of Contents

Best 5% interest savings accounts

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.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

  • 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.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    Up to 6 transactions each month

  • Excessive transactions fee

    The bank may charge fees for non-sufficient funds

  • Overdraft fee

  • Offer checking account?

  • 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.

  • 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

  • Minimum balance

    $0, no minimum deposit or balance needed for savings

  • Fees

    No monthly maintenance or service fees

  • Overdraft fee

    Overdraft fees may be charged, according to the terms; overdraft protection available

  • ATM access

    Free ATM card with unlimited withdrawals

  • 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.

  • Annual Percentage Yield (APY)

  • Minimum balance

    $1,000 minimum deposit; $1,000+ minimum balance to obtain APY

  • Monthly fee

    $10, with option to waive if account maintains minimum $1,000 balance

  • Offer checks?

  • 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.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    Up to 6 withdrawals or transfers per statement cycle

  • Excessive transactions fee

  • Overdraft fee

  • Offer checking account?

  • 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.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • 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

  • Excessive transactions fee

  • Overdraft fee

  • Offer checking account?

    Only a business checking account

  • 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.

  • Annual Percentage Yield (APY)

  • 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

  • Offer checking account?

  • 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.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    There are no restrictions on number of withdrawals per month from savings account

  • Excessive transactions fee

  • Overdraft fee

  • Offer checking account?

  • 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.

  • 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)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    Up to 6 transfers out each month and transfer amounts to savings apply

  • Excessive transactions fee

  • Overdraft fee

  • Offer checking account?

  • 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:

  1. Make a minimum deposit of $25 and have that minimum balance at the end of the month
  2. 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.

  • Annual Percentage Yield (APY)

    Begin earning 3.00% APY and qualify to earn 5.00% APY if meet requirements

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle

  • Excessive transactions fee

  • Overdraft fee

  • Offer checking account?

  • 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:

  1. Receive $1,000 or more in direct deposits per month
  2. 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.

  • Annual Percentage Yield (APY)

    5.00% APY on balances of $5,000 or more; balances less than $5,000 earn 0.25% APY

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle

  • Excessive transactions fee

    $10 per transaction up to $50 per month

  • Overdraft fee

  • Offer checking account?

  • 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

Western Alliance Bank High-Yield Savings Account

UFB Portfolio Savings

CFG Bank High Yield Money Market Account

Bask Interest Savings Account

Newtek Bank Personal High Yield Savings

Laurel Road High Yield Savings

Panacea High-Yield Savings Account

Mango Savings

Varo Savings Account

CIT Bank Platinum Savings

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

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

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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