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

When interest rates rise, it is possible to find savings accounts with 5% interest – even easily. But is it possible to surpass this? Are there banks that offer savings accounts with an interest rate of 7%?

Can you get a savings account with 7% interest?

Although there are plenty of banks offering competitive rates, finding a savings account with a 7% interest rate is no easy task. Considering the currentsavings forecast, it is not uncommon to findsavings accounts with high returnsat rates close to 5%, and some even above. But it's a rare account that earns 7.00%annual percentage yield (APY).

There are no traditional banks in the US that offer a savings account with 7% interest, but there are some credit unions that offer checking accounts and certificates with rates near or above 7.00% APY.

It is important to note that interest rates on savings accounts are variable and can change at any time. Neweronline bankingand credit unions can offer savings accounts with 7% interest to attract new customers, only to lower the interest rate later. You may also need to meet certain balance or activity requirements to earn 7% interest, or only earn this rate on a portion of your balance.

Which bank offers 7% interest on savings accounts?

While no bank offers a savings account with a 7% interest rate, the following credit unions offer certificates and checking accounts with rates near or above 7.00% APY. These prices are subject to change at any time and are current as of March 26, 2024.

Federal Credit Union Digital Primary Savings

• APY:6.17% on balances up to $1,000
• Monthly maintenance costs:$ 0
• Minimum deposit to open:5 USD

Digital Federal Credit Union's Prime Savings Account offers 6.17% APY on the first $1,000 you deposit. A dividend percentage of 0.15% is awarded for every part of your balance above € 1,000. Prices are variable and subject to change at any time.

While this isn't quite 7.00% APY, it's as close as you can currently get with a savings account. Keep in mind that you only earn 6.17% APY on the first $1,000 in your account, so if you plan to maintain a much higher balance in your savings account, you may earn even more interest with a high-yield savings account that yields a lower interest rate. rate on all balances. That said, this account has no monthly maintenance fees and a low minimum opening deposit requirement.

DCU is a credit union, so you must become a member to open an account. If you don't live in Massachusetts or work for one of DCU's participating employers, you can still join by joining the nonprofit Reach Out for Schools and paying a $10 membership fee.

Landmark Credit Union Premium-controle

• APY:7.50% on balances up to $500
• Monthly maintenance costs:$ 0
• Minimum deposit to open:35 USD

Landmark Credit Union's Premium Checking Account offers 7.50% APY on balances up to $500 after signing up for eStatements and receiving at least $250 per month in qualified direct deposits.

Is This the Best Savings Account to Earn a 7.00% APY? Not exactly, because it's a checking account and you only earn the higher APY on the first $500 in your account. And while this account doesn't charge a monthly maintenance fee, it does charge a $20 account closure fee for accounts closed within the first 90 days.

Alpena Alcona Area Credit Union Certificate of Deposit (currently unavailable)

• APY:7,19 %
• Monthly maintenance costs:$ 0
• Minimum deposit to open:500 USD

Alpena Alcona Area Credit Union (AAACU) previously offered a seven-month stock CD with an APY of 7.19% – although that rate wasn't in effect for long. The minimum deposit to open the CD was $500, with interest compounding quarterly. The maximum deposit was $7,000 and only one CD per player is allowed. member. If you need to withdraw funds before the seven-month period has expired, an early withdrawal penalty will apply.

To take advantage of this offer, an AAACU membership was required. You are eligible to become a member if you:

• Live, work, own real estate, go to school or worship anywhere in the state of Michigan
• Is an AAACU employee
• Is the spouse of a deceased member and has not remarried at the time of joining
• Belongs to the immediate family of an existing member

When you join AAACU, you will need to open a stock savings account to secure your place as a member. The minimum deposit for AAACU CDs is $5, and applications are accepted online or at AAACU branches.

This way you get an interest rate of more than 7% on a savings account

Earning more than 7% interest on a savings account is usually not possible. Even in a high-fee environment, you're unlikely to find a high-yield savings account, CD, orhigh yield checking accountthat offer more than 7.00% APY.

If you want to earn more than 7% on your money, you should probably invest it. However,Investment accounts are riskier than bank accounts. Although savings accounts are FDIC insured and cannot lose money, investment accounts are usually not insured against loss. And while you can make more than 7% investing, you can also lose money. It all depends on how your investments perform.

Alternatives to savings accounts with 7% interest

All of the 7% interest accounts mentioned earlier require you to join a credit union, and some only earn interest on a small portion of your balance. If you want to maximize your earnings and avoid other restrictions, consider these alternatives.

Savings accounts with high returns

By researching the best high-yield savings accounts at different banks, you can find accounts that earn a competitive APY on your entire balance, often with no balance or activity requirements. There are someSavings accounts with 5% interestthat can actually help you earn more in the long run. Below are some of the best savings options you can consider right now.

• UFB Safe Savings: That's 5.25% APY
• Salem Five instant eOne savings: 5,01 % APY
• Varo Savings Account: 3.00% tot 5.00% APY
• Bask Interest savings account: 5,10 % APY
• Marcus from Goldman Sachs high yield online savings account: 4,50 % APY

Certificates of Deposit (CDs)

The interest on savings accounts can drop at any time. If you want to lock in a high APY while the rates are favorable, consider one7% rental CD.

Although these can also be difficult to findBest CD pricesare often higher than the best savings rates.Several credit unions offer CD rates close to 6.00% APY.CD rates are fixed, so you're guaranteed to earn the APY you commit for the life of the CD, but you usually can't withdraw your money without paying a penalty.

Money Market Accounts (MMAs)

Ofbest money market annuitycan also be higher than the savings interest rate. Money market accounts combine features of savings accounts and checking accounts. You can earn higher interest on your money, and these accounts can also come with an ATM card, debit card, or paper checks. However, like a savings account, you may be limited to six withdrawals per month.

Frequently Asked Questions (FAQ)