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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.
  • Eligibility for these credit unions is limited according to geographic location and other narrow criteria.
  • Before you open an account, it’s important to consider things such as eligibility, fees, accessibility and minimum deposit and balance requirements.
  • Savings account alternatives include certificates of deposit, money market accounts and index funds.
  • You can also find high-yield savings accounts with rates close to 5% or even over the mark: Western Alliance (5.24% APY), Barclays (4.35% APY), Synchrony (4.75% APY), UFB Direct (5.25% APY), Quontic Bank (4.50% APY), CloudBank 27/7 (5.24% APY).

Which bank offers 7% interest on savings accounts? Whether you’re new to the fascinating world of personal finance or fairly well-versed in today’s banking options, the fact is you’ve likely never heard of a 7% annual percentage yield (APY). That rate is incredible, and there are only a couple of places where you can open an account and score an?APY so good it leaves the national average rate in the dust.

Before you trust your hard-earned cash or impending tax return to just anybody, let’s see which financial institutions are offering the best bang for your buck.

In this guide, we’ll cover crucial topics such as:

  • What is a 7% interest savings account?
  • Which bank gives 7% interest on a savings account?
  • How to choose a 7% interest savings account

Our top picks for high-yield savings accounts of May 2024

What is a 7% interest savings account?

A 7% interest savings account is considered high yield because the interest you’d earn is far above what you’d typically get from a standard savings account. The Federal Deposit Insurance Corporation (FDIC) lists the?national average interest rate?for savings accounts at just 0.46%.

Finding a 7% interest rate is sort of like hitting the personal finance jackpot. While most high-yield savings accounts offer a high?APY that far exceeds the 0.46% national average, they still usually cap out at around 5% interest. It’s not unusual to sign up for an online-only savings account that offers a 4.25% to 4.50% APY and feel like you really scored.

If you do manage to find a financial institution that offers 7% interest rates, those extra couple of percentage points can make a huge difference.

Here’s what your earnings might look like if you made an initial deposit of $5,000 at an APY of 7% compounded monthly versus the same account subject to basic interest.

Basic vs. Compound Interest: 7% Interest Savings Account With $5K Initial Deposit

Amount of time 7% basic interest 7% interest compounded monthly
1 year $5,350 $5,361.45
2 years $5,724.50 $5,749.03
3 years $6,125.22 $6,164.63
4 years $6,553.98 $6,610.27
5 years $7,012.76 $7,088.13

The above chart assumes you’re not making any additional deposits. But if you signed up for 7% compounded interest and added just $100 each month to your account, after five years, you’d have a whopping $14, 247.42.

To understand more about how much you could earn, try using our savings calculator.

Which bank gives 7% interest on a savings account?

There aren’t any banks offering a savings account with 7% interest right now. However, two financial institutions are paying out at least 7% APY on checking accounts.

While it’s an unusual move, stockpiling your “extra” money in a checking account with sky-high interest could be beneficial. Unlike with how a savings account works, there likely won’t be any withdrawal limits and you should be able to access your money more readily than if you opted for a savings account or CD.

Which bank gives 6% interest on a savings account?

While no banks currently offer 6% interest on savings accounts, some options come close. For example, Western Alliance offers a competitive 5.24% APY, and Lending Club provides an impressive?5.00 APY.

Which bank gives 8% interest on a savings account?

Currently, no banks offer an interest rate of 8% on savings accounts. However, some banks provide a 7% APY on checking accounts. These include Landmark Credit Union Premium checking account with an APY of 7.50%, and OnPath Credit Union High Yield checking account with an APY of 7.00%.

Banks with high-yield savings accounts’ interest rates

Bank APY Monthly fee Minimum opening deposit Withdrawal limits Savings Account
UFB Direct 5.25% $0 $0 - $510 per day
- Bank transfers are limited to $30,000 in or out per day and $60,000 in or out per month. However, the total number of transfers you can make is unlimited
Compare
Western Alliance 5.24% $0 $1 - No upper limit for withdrawals Compare
American Express 4.25% $0 $0 - 9 withdrawals per month
- To transfer money in and out, you need to link the savings account to a separate checking account
Compare
CloudBank 24/7 5.24% $0 $1 - No limit on the number of transfers Compare
Laurel Road 5.00% $0 $0 - 7 withdrawals per month Compare
Valley Direct 4.75% $0 $1 - Three to six transfers for a maximum of $150,000 to $300,000 per calendar month Compare
Synchrony 4.75% $0 $0 - $1,000 per day
- No limit on the number of times
Compare
Bask Bank 5.10% $0 $0 - Up to six online withdrawals per month Compare
Ally Bank 4.25% $0 $0 - 10 withdrawals per month Compare
Marcus 4.50% $0 $0 - No withdrawal limit Compare
Barclays 4.35% $0 $0 - Withdrawal limit of $250,000 per transaction
- No limit on the number of times
Compare
Capital One 4.25% $0 $0 - No withdrawal limit Compare
Citibank 4.45% $4.50 $0 - No withdrawal limit Compare
PNC 4.65% $0 $0 - Monthly withdrawal cap of 6 transactions Compare
CIT Bank 0.25%-5.00% $0 $100 - No limit on the number of transfers Compare
Quontic Bank 4.50% $0 $100 - Limit of 6 withdrawals per statement cycle Compare

Rates are accurate as of May 2024.

Landmark Credit Union Premium Checking 7.50% APY

Landmark Credit Union offers a Premium Checking account with an interest rate of 7.50%. That sounds exciting, but there are major caveats.

That rate only applies to balances of up to $500, and you’ll need to jump through some hoops to qualify:

Key Features of Landmark Credit Union Premium Checking

Feature Detail
APY 7.50% on balances up to $500
Monthly maintenance fee None
Minimum deposit to open $35
Other features 34,000+ in-network ATMs, free bill pay, robust digital banking

Remember, this isn’t a savings account. You’ll be able to make deposits and withdrawals as often as you like, but you may be subject to fees if you don’t meet balance requirements or if your bank account is overdrawn. Landmark also offers certificate accounts with terms from three months to five years. Landmark Credit Union CD rates range from 0.5% to 4.3% APY depending on the term length.

OnPath Credit Union High Yield Checking 7.00% APY

OnPath Credit Union’s High Yield Checking is also a transactional account, not a savings account. But it comes with an impressive 7.00% APY that surpasses what you’d normally see from checking accounts at brick-and-mortar banks or savings accounts at online-only banks.

Like Landmark’s Premium Checking, OnPath’s High Yield Checking has a cap on balances eligible for the maximum?APY, but the ceiling is a very generous $10,000. Balances over $10,000 earn just 0.50% APY.

Other eligibility requirements that must be met before you nab that 7% APY include:

Membership eligibility for OnPath Credit Union is extremely restrictive. You must live, work, attend school or worship in an eligible part of Greater New Orleans or in the nearby areas of Avondale, Bridge City,?Gretna, Harvey, Lafourche Parish, Marrero, Orleans Parish, South Kenner, St. Tammany, Waggaman or?Westwego. The financial institution also has a Select Employee Group (SEG) program that extends membership to employees of 600 local businesses and organizations.

Key Features of OnPath Credit Union High Yield Checking

Feature Detail
APY 7.00% on balances up to $10,000
Monthly maintenance fee None
Minimum deposit to open $25
Other features Privileges at 5,600 physical locations and 30,000 fee-free ATMs, up to $10/month refunded for out-of-network ATM fees, free bill pay

How to choose a 7% interest savings account

Before you sign up for a 7% interest account, it’s important to consider what features are offered and how those perks (and any associated drawbacks) stack up against your own list of needs and wants.

You’ll want to review these savings account features:

How to apply for a 7% interest savings account

As of May 2024, there are no savings accounts offering a 7% interest rate, but you can open a 7% interest checking account at two U.S.-based credit unions.

To qualify for these accounts, you’ll need to meet some very strict requirements. That’s because credit unions are membership-based, and they’re allowed to qualify members based on factors such as geographic location and business affiliation. Depending on the institution, you may need to worship at a certain church or belong to a certain labor union.

OnPath Federal Credit Union is a great example of these requirements in action. To join OnPath’s 63,000-strong membership pool, you need to live, work, attend school or worship in certain areas of New Orleans or one of the nearby cities or parishes approved by the bank. You may also be eligible if you or a direct relative (parent, grandparent, child or sibling) meets OnPath FCU’s eligibility requirements.

If you do qualify, you can likely apply by following these steps:

Is a 7% interest savings account right for me?

Since you can’t currently get a 7% interest rate savings account, the real question is whether a 7% checking account is right for you. Understanding the pros and cons of high-yield savings accounts can help you decide if it is worth it.

Consider these pros and cons when deciding whether or not to get a checking account with a 7% interest rate.

Pros
  • 7% APY is the highest in the country
  • Credit unions generally offer more personal customer service and other favorable terms
  • Minimum balance requirements are nonexistent
  • Low minimum deposit requirements make it easy to open an account
  • No monthly service fees
  • Going with a checking account over a savings account works well for short-term savings
  • Broad ATM networks make it easy to access money fee-free
  • Accounts are FDIC-insured for up to $250,000 per institution, per depositor
Cons
  • Balance ceilings mean that rate only applies to a limited portion of your account balance
  • Account eligibility is restricted to members who must live, work, worship or attend school in a certain area
  • There are other requirements (e.g., frequent debit transactions, e-statement enrollment) you must meet to get premium interest rates

Alternatives to 7% interest savings accounts

If you’re still not sure if a 7% interest rate checking account is right for you, there are other high-yield options worth exploring.

1

Certificates of deposit (CDs)

Certificates of deposit are for a set deposit amount and set term. Once your money is locked up in the CD, you can’t access it without incurring a hefty penalty. That said, some CDs offer competitive rates of 5% APY or higher.

See More See Less
2

Money market accounts (MMAs)

Money market accounts take the best aspects of checking and saving accounts and combine them into one offering. You’re generally eligible for higher-than-standard interest rates. This can work to your benefit if you have a large account balance and want to maintain easy access to your funds without dealing with transaction caps.

See More See Less
3

Index funds

Index funds are considered passive investing because you’re putting your money into a portfolio rather than individual stocks. Risk is low, and ROI can be as high as 10% over the long term.

See More See Less

Our top picks for high-yield savings accounts of May 2024

FAQ: 7% interest savings accounts

Where can I get 7% interest on my money?

You can get 7% interest on your money if you put that nest egg into a checking or savings account that offers that premium rate. As of May 2024, only two financial institutions offer a minimum 7% APY: OnPath Federal Credit Union has a high-yield checking account with 7% APY and Landmark Credit Union’s Premium Checking has a limited APY of 7.50%.

What is the highest interest rate for a savings account?

If you have your heart set on a savings account rather than a high-yield checking account, you can get top-of-the-line rates from online banks like Western Alliance Bank (5.24% APY), Synchrony (4.75% APY), Ivy Bank (5.30%), Popular Direct (5.35%) and Milli (5.50%). These are way above the national average savings rate of 0.46% and more than you’d get at most brick-and-mortar banks, which often have interest rates of around 0.01 to 0.03%?APY.

Is a 7% savings account interest taxed?

All interest earned on savings accounts in the United States is subject to taxation, including 7% interest earned on a savings account or checking account from an online bank or credit union. You’ll get a 1099-INT form from your bank that lists all interest earned over $10, but the IRS mandates total reporting, meaning you need to report interest of less than $10 too and any earnings not listed on a 1099-INT.

Alana Luna (Musselman)
Alana Luna (Musselman) Writer & Content Strategist

Alana Luna (Musselman) is a versatile storyteller with over a decade of writing experience. She is passionate about helping people build their business through unique and engaging content. Some examples of her current freelance projects include building content strategies for small businesses, completing industry research to build case studies, crafting buyer guides and more.

She has a passion and keen ability to simplify complex ideas through storytelling to make it easier for readers to understand hard-to-digest information. As such, Alana’s writing holds strong three principles – content that educates, engages and entertains.

Apart from her contributions to LA Times Compare, Alana has freelanced and ghostwritten for large publications and prestigious brands such as Orbitz, Groupon, Amazon, JCPenney, Walmart and more.

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