7% interest savings accounts: Everything you need to know (2024)

It may be hard to believe, but some banks are currently advertising rates that come close to or even exceed the 7% benchmark. However, these sky-high rates don’t come without caveats.

Here, we explain the fine print of these offers to help determine whether a 7% interest savings account is too good to be true.

Understanding 7% interest savings accounts

A vital feature of any savings account is its interest rate. This rate, typically advertised as annual percentage yield (APY), determines how much the bank will pay you in interest as a percentage of your account balance.

For example, a savings account with a $1,000 balance that earns interest at a rate of 7.00% APY would receive $70 in interest per year.

While the potential earnings of a 7% interest rate may sound enticing, it’s far from common. Most savings accounts, even high-yield options, pay interest at a much lower rate. However, recent economic changes have led to higher rates than we’ve seen in decades, and some banks may advertise rates near the 7% range.

If you have your sights set on a savings account earning 7% interest, the most important thing to understand is that savings rates fluctuate. Even if a bank advertises a savings account with a rate at or near 7%, this rate will likely change as the market changes.

Banks that offer 7% interest on savings accounts

While no financial institutions currently offer savings accounts with 7% interest, a few accounts that meet similar criteria are available. These include one high-yield checking account with an APY that exceeds 7.00% and several high-yield savings accounts.

Landmark Credit Union Premium Checking (7.50% APY)

The only financial institution account currently advertising interest payments above 7% is available from Landmark Credit Union, a credit union with more than 30 locations in Wisconsin that also offers its services online. The credit union’s Premium Checking account lists potential interest earnings up to 7.50% APY.

To qualify for the maximum rate, account holders must opt into electronic statements and receive at least $250 in direct deposits each month. There’s just one catch: the 7.50% APY only applies to balances up to $500. Balances over $500, meanwhile, earn 0.06% APY.

You also have to qualify for membership to the credit union, meaning you (or a relative) need to live or work in certain counties in Wisconsin or Illinois.

When asked to comment on how Landmark Credit Union can offer such drastically high rates compared to competitors, a spokesperson explained that it all comes down to the difference between credit unions and for-profit banks.

“One key advantage of credit unions is their structure,” said Brian Melter, chief experience officer at Landmark Credit Union. “Unlike online financial institutions, credit unions are member-owned cooperatives, not-for-profit entities that exist to serve their members rather than generate profits for shareholders. This structure allows credit unions to offer products designed with the needs of the members at their focus.”

Digital Credit Union Primary Savings (6.17% APY)

Falling short of a 7% interest rate, Digital Federal Credit Union offers an APY of up to 6.17% on its Primary Savings account. With no monthly fee and a minimum deposit of just $5 to open an account, customers will find relatively few hurdles compared to stricter requirements to earn interest with some competing institutions.

Unfortunately, the 6.17% APY only applies to Primary Savings balances up to $1,000. Balances that exceed this limit earn interest at a much lower rate of 0.15%.

If you don’t live or work somewhere that makes you eligible for membership, you can qualify by becoming a member of one of many participating organizations for as little as $10.

Popular Direct High-Yield Savings (5.20% APY)

Popular Direct offers one of the best high-yield savings rates at 5.20% APY. Aside from a minimum opening deposit of $100, the account has relatively few limits or drawbacks. There is no monthly fee, and the maximum advertised APY applies to all balances with no limit.

However, the account must remain open for at least 180 days to avoid an early account closing fee of $25.

TAB Bank High Yield Savings (5.27% APY)

Another great high-yield savings option with an industry-leading rate, TAB Bank offers customers a generous 5.27% APY. The account has virtually no barriers; there’s no monthly fee, no minimum deposit to open and no limit to the balance eligible for maximum interest earnings.

Opening a 7% interest savings account

No matter what interest rate your chosen savings account earns, the process to open the account will be the same.

Research rates: Compare the best savings rates currently available to find the best returns.

Look at limits and fees: Many savings accounts with advertised rates near 7% impose a limit on the balance eligible for the maximum APY, only to pay interest at a much lower rate on balances that exceed this limit. Hidden account fees can quickly eat away at any interest earnings.

Choosing an account that pays a slightly lower APY on your entire balance might be more advantageous than a high APY on just a tiny portion.

Apply for an account: Depending on the institution, you’ll either be able to open an account online or in person. You’ll need to provide personal information, including your social security number and current address.

Transfer your funds: Move funds from your existing account by writing a check or making an electronic transfer. Make sure you’re aware of any minimum balance requirements associated with the new account.

Exploring alternatives to 7% interest savings accounts:

High-yield savings accounts

Savings accounts that earn interest in the neighborhood of 7% are considered high-yield savings accounts. These accounts are often found at online banks and smaller credit unions.

Certificates of deposit (CDs)

Certificates of deposit, or CDs, are a type of savings account that earn a fixed interest rate for a specific period of time. CD rates fluctuate with the economy and may offer better returns than other savings options.

If you don’t need immediate access to the funds you intend to put in a high-yield savings account, you may want to compare CD rates to see which offers a better return.

Money market accounts (MMAs)

Money market accounts are another great option for maximizing interest earnings on your savings. These accounts function similarly to high-yield savings accounts but may have higher minimum balances or other requirements. Current money market rates are comparable to top high-yield savings rates.

Frequently asked questions (FAQs)

Landmark Credit Union is currently offering interest rates above 7%. However, this rate is only available for checking balances up to $500.

While 7% interest rates aren’t currently available for any savings accounts we could find, many high-yield options offer impressive APYs, some exceeding 5.00%.

CDs may pay higher rates than standard savings accounts but are somewhat limiting because funds cannot be withdrawn until the CD matures at the end of its term. CD terms can range anywhere from a few months to several years.

Money market accounts tend to have higher minimum balance requirements than standard savings accounts. Money market accounts may also have additional fees and features, such as excess transaction fees and the ability to write checks from the account.

7% interest savings accounts: Everything you need to know (2024)

FAQs

Which bank is giving 7% interest in savings accounts? ›

Which Bank Gives 7% Interest Rate? Currently, no banks are offering 7% interest on savings accounts, but some do offer a 7% APY on other products. For example, OnPath Federal Credit Union currently offers a 7% APY on average daily checking account balances up to and under $10,000.

Where can I get 7% interest on my money online? ›

7% Interest Savings Accounts: What You Need To Know
  • As of May 2024, no banks are offering 7% interest rates on savings accounts.
  • Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

How to get 7% APY? ›

There aren't any traditional banks offering a 7% interest savings account in the U.S., but you will find some credit unions that offer checking accounts and certificates with rates near or above 7.00% APY. It's important to note that savings account rates are variable and can change at any time.

What do I need to know about high interest savings accounts? ›

High-yield savings accounts reward you with a higher interest rate than traditional savings accounts, making your money grow faster as it sits in your account. The interest rate that these accounts offer is noted as APY, or annual percentage yield. The higher your APY, the faster your money grows.

Where can I get 8% interest on my savings? ›

The ones below [Saffron and Coventry building societies] aren't. So Nationwide pays the most interest – 8% for one-year variable. This will be the one that Tania should go for. The monthly amount, well, you don't have to contribute each month, that's why it says nought.

Which bank gives 8% interest? ›

Top 20 Scheduled Banks offering Best FD Rates
BanksHighest FD rate (% p.a.)3-year FD rate (% p.a.)
RBL Bank8.007.50
AU Small Finance Bank8.007.50
Fincare Small Finance Bank8.007.50
DCB Bank8.007.60
16 more rows

Can you get 7% on a CD? ›

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

Where can I make 10% interest on my money? ›

Where can I get 10 percent return on investment?
  • Invest in stocks for the short term. ...
  • Real estate. ...
  • Investing in fine art. ...
  • Starting your own business. ...
  • Investing in wine. ...
  • Peer-to-peer lending. ...
  • Invest in REITs. ...
  • Invest in gold, silver, and other precious metals.

What bank currently has the highest savings interest rate? ›

The 5 highest-paying savings rates today
Institution NameAPYCompounding Method
Betterment5.50%Monthly
BrioDirect5.35%Monthly
TAB Bank5.27%Monthly
Newtek Bank5.25%Daily
1 more row

Where can I get 7% on a CD? ›

What banks are offering 7% interest on CDs? Currently, no U.S. banks or credit unions are offering 7% APY on CDs. During August 2023, a few credit unions were offering 7% interest on CDs, but those were limited-time offers that are no longer available.

Which bank pays the highest interest on a savings account? ›

Best High-Yield Savings Account Rates
  • Evergreen Bank Group – 5.25% APY.
  • CFG Bank – 5.25% APY.
  • Upgrade – 5.21% APY.
  • EverBank – 5.15% APY.
  • RBMAX – 5.15% APY.
  • Bread Savings – 5.15% APY.
  • Popular Direct – 5.15% APY.
  • Western State Bank – 5.15% APY.

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