- As of October 2024, no banks are offering 7% interest rates on savings accounts.
- Two credit unions offer high-interest checking accounts: Landmark Credit Union Premium Checking with a 7.50% APY and OnPath Credit Union High Yield Checking with a 7.00% APY.
- Eligibility for these credit unions is limited according to geographic location and other narrow criteria.
- There are also many types of savings accounts to meet your needs, each with a high APY: BrioDirect (5.15% APY), Bask Bank (4.85% APY), American Express (4.10% APY), UFB Direct (4.83% APY), CIT Bank (4.70% APY), Western Alliance (4.70%).
- Before you open an account, it’s important to consider things such as eligibility, fees, accessibility and minimum deposit and balance requirements.
- Alternatives to a savings account include certificates of deposit with a high APY of up to 6% through Gainbridge, money market accounts and index funds.
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On This Page
- Key Takeaways
- Featured savings account with high APY, no monthly fee and no min to earn APY
- Our top picks for high-yield savings accounts of October 2024
- What is a 7% interest savings account?
- Which bank gives 7% interest on a savings account?
- How to choose a 7% interest savings account
- How to apply for a 7% interest savings account
- Is a 7% interest savings account right for me?
- Alternatives to 7% interest savings accounts
- Our top picks for high-yield savings accounts of October 2024
- FAQ: 7% interest savings accounts
- Related topics
On This Page
- Key Takeaways
- Featured savings account with high APY, no monthly fee and no min to earn APY
- Our top picks for high-yield savings accounts of October 2024
- What is a 7% interest savings account?
- Which bank gives 7% interest on a savings account?
- How to choose a 7% interest savings account
- How to apply for a 7% interest savings account
- Is a 7% interest savings account right for me?
- Alternatives to 7% interest savings accounts
- Our top picks for high-yield savings accounts of October 2024
- FAQ: 7% interest savings accounts
- Related topics
7% Interest Savings Accounts: What You Need To Know
Reviewed By
Blake Esken - Los Angeles Times
Our top picks for high-yield savings accounts of October 2024
Advertiser Disclosure
UFB Portfolio Savings Account
FDIC Insured
Rates updated as of 09/19/2024
Rates updated as of 09/19/2024
APY
4.83 %
Monthly Fee
$0.00
Minimum Opening Deposit
$0.00
Why We Like It
Editor's take
The UFB Portfolio Savings Account offers an impressive 4.83% APY with no minimum balance requirement, so you can earn a high interest rate regardless of the amount of your funds.
Although the UFB savings account is an online-only account, it offers digital tools such as SMS Banking so that you can bank even without Wi-Fi. You’ll also receive a complimentary ATM card, a rare feature seen with savings accounts, making this account a solid choice for those who want more access to their savings.
PROS
- Competitive APY of 4.83% (national average is 0.46%)
- No maintenance or service fees
- No minimum deposit requirement
- Complimentary ATM card
- Free transfers between direct deposit accounts
- FDIC-insured
CONS
- No in-person banking
- Although the number of transfers is unlimited, you’re limited to $60,000 in transfers monthly
- Must have a residential U.S. address, and P.O. Box addresses don’t count
CIT Platinum Savings Account
Member FDIC
Rates updated as of 09/26/2024
Rates updated as of 09/26/2024
APY
apy
Monthly Fee
$0.00
Minimum Opening Deposit
$0.00
Why We Like It
Editor's take
The CIT Platinum Savings Account offers a competitive apy% APY for balances of $5,000 and above, making it an attractive option for those looking to grow their savings. However, for balances below $5,000, the APY drops significantly to the less-than-impressive rate of 0.25%, which is even lower than the national average APY of 0.46%.
With that being said, there are no fees to open a CIT Platinum Savings Account and it doesn’t come with any monthly maintenance fees. Therefore, if you’re confident in maintaining a balance of at least $5,0000, this savings account could certainly be a great choice.
PROS
- 4.70% APY if you meet the minimum requirement
- No monthly maintenance fees
- FDIC-Insured
- No fees to open an account
CONS
- Low APY for balances below $5,000
- No physical branches
- Minimum opening deposit requirement of $100
SoFi Checking and Savings
LEARN MORE
Member FDIC
Rates updated as of 09/23/2024
Rates updated as of 09/23/2024
APY
4.50 %
Monthly Fee
$0.00
Minimum Opening Deposit
$0.00
Why We Like It
Editor's take
PROS
- Competitive APY of 4.50%
- No minimum opening deposit
- No monthly maintenance fees
- FDIC-insured
- Potential $300 bonus
CONS
- Must receive a direct deposit (any amount) or deposit $5,000 every 30 days to get the highest APY
- No physical branches
- To receive $300 bonus, direct deposit amount must total at least $5000 within 25 days
- Cash deposits come with a fee
BrioDirect Savings Account
FDIC Insured
rates_last_updated
rates_last_updated
APY
apy
Monthly Fee
$0.00
Minimum Opening Deposit
$5000.00
Why We Like It
Editor's take
description
PROS
- High APY
- No monthly fees
CONS
- BrioDirect doesn’t offer a money market or checking account
Western Alliance Bank Savings Account
LEARN MORE
Member FDIC
Rates updated as of 10/02/2024
Rates updated as of 10/02/2024
APY
4.70 %
Monthly Fee
$0.00
Minimum Opening Deposit
$1.00
Why We Like It
Editor's take
The Western Alliance Bank Savings Account offers an impressive interest rate of 4.70%. Available through Raisin, this FDIC-insured high-yield savings account has no monthly maintenance fees, and you can open an account with as little as $1.
If your primary goal is to earn high interest on your savings, the Western Alliance High-Yield Savings Account could be the perfect choice for you.
PROS
- Competitive APY of 4.70%
- $1 minimum opening deposit
- $1 minimum balance requirement
- No monthly maintenance fees
- FDIC-insured
CONS
- No in-person services
- Balances are capped at FDIC maximums
- Transfers can take up to one to three days
- Doesn’t come with a debit card
Laurel Road Savings Account
FDIC Insured
rates_last_updated
rates_last_updated
APY
apy
Monthly Fee
$0.00
Minimum Opening Deposit
$0.00
Why We Like It
Editor's take
description
PROS
- Competitive high APY
- No monthly maintenance fees
- No minimum opening deposits.
CONS
- No branch access
- No ATM access
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. However, if you sign up for 7% compounded interest and contribute just $100 each month to your account, you would accumulate a substantial $14,247.42 after five years.
To learn more about potential earnings, try our savings calculator. You can also explore these guides:
- How much will $1,000 make in a high-yield savings account?
- How much will $10,000 make in a high-yield savings account?
Which bank gives 7% interest on a savings account?
No banks are currently offering a 7% interest rate on savings accounts. However, Landmark Credit Union and OnPath Credit Union are offering at least 7% APY on their 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.
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:
- Become a member of the credit union (only open to residents of certain counties in Wisconsin and Illinois)
- Have direct deposits to the account totaling at least $250 per month
- Enroll in eDocuments (the digital version of monthly bank statements)
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:
- Log into your OnPath online account or mobile banking at least once per monthly statement cycle
- Make at least 15 debit card purchases each statement cycle (must post and settle during the given cycle)
- Enroll in e-statements
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 |
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, Bask Bank offers a competitive 5.10% APY, and Laurel Road 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%.
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:
- Type of account: As of October 2024, no banks are offering a 7% interest savings account. However, two credit unions are offering that rate for one of their top-tier checking accounts. Get to know the differences between checking and savings accounts to see if the APY is worth the switch.
- Eligibility: Credit unions often have strict eligibility requirements to open an account, and that’s the case with the two institutions offering 7% APY checking accounts. You’ll need to live, work, attend school or worship in a certain area to even apply.
- Deposit requirements: Some banks require a certain minimum deposit to open an account. Both high-yield accounts listed in this guide have low minimum deposit requirements (just $25 and $35) and no minimum monthly balances to meet.
- Fees: The interest you earn can quickly be canceled out by sky-high fees. Look for an account that either has zero monthly maintenance fees or one that eliminates fees if you meet certain requirements (e.g., enabling direct deposit or switching to digital statements).
- Ease of access: Accessibility is important, especially with a checking account you plan to use frequently. Banks with large fee-free ATM networks make it easier to manage your money while traveling, and having conveniently located brick-and-mortar branches can be helpful, too.
- Type of interest accrued: A bank account offering compound interest is usually more favorable than one with simple interest. That’s because simple interest generates earnings based solely on the account’s principal, but compound interest is based on the principal amount and interest earned to date combined. Compound interest just adds up faster.
How to apply for a 7% interest savings account
As of October 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:
- Gather personal documentation that proves your identity and current address, such as a government-issued ID or a passport.
- If applicable, bring proof that you live or work in the required area or, if you need to be a member of a certain union, provide your membership card for that organization.
- Bring your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for tax recording purposes.
- Fill out the credit union’s application.
- Once you’ve approved, fund your account.
- Take actions necessary to secure the premium interest rate, such as setting up direct deposits or opting in to eDocuments.
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
Bank
APY
Monthly fee
Minimum opening deposit
More details
4.83 %
$0.00
$0.00
FDIC Insured
Rates updated as of 09/19/2024
Rates updated as of 09/19/2024
apy
$0.00
$0.00
Member FDIC
Rates updated as of 09/26/2024
Rates updated as of 09/26/2024
apy
$0.00
$0.00
Member FDIC
Rates updated rates_last_updated
Rates updated rates_last_updated
apy
disclosure
min_deposit
$0.00
FDIC Insured
Rates updated as of 09/23/2024
Rates updated as of 09/23/2024
apy
$0.00
$0.00
Member FDIC
Rates updated rates_last_updated
Rates updated rates_last_updated
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.
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.
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.
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 October 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%.
Alternatively, there are two credit unions in California offering almost 7% interest on CDs. These include the California Coast Credit Union five-month CD with 9.5% APY and Financial Partners Credit Union eight-month CD with 6.50% APY.
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 (4.70% APY), Synchrony (4.30% APY), Ivy Bank (5.30%), Popular Direct (4.95%) and Milli (4.75%). 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.
Where can I get 12% interest on my money?
Similarly to 7% interest rates, there are currently no FDIC-insured 12% interest savings accounts. Instead, if you want to earn this elusive interest rate, you would need to look at riskier investments such as foreign banks and cryptocurrency savings options.
About the Author
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. To accomplish this, Alana’s writing holds strong three principles – content that educates, engages and entertains.
About the Reviewer
Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.
As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.
He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.
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