Best 5% Interest Savings Accounts (original) (raw)
Erin Bendig has extensive experience in various areas of personal finance. She previously worked as a staff writer for Kiplinger.com, focusing primarily on savings accounts and banking. In addition, she has freelanced for Bankrate, covering topics re...
Erin Bendig has extensive experience in various areas of personal finance. She previously worked as a staff writer for Kiplinger.com, focusing primarily on savings accounts and banking. In addition, she has freelanced for Bankrate, covering topics re...
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Erin Bendig has extensive experience in various areas of personal finance. She previously worked as a staff writer for Kiplinger.com, focusing primarily on savings accounts and banking. In addition, she has freelanced for Bankrate, covering topics re...
Erin Bendig has extensive experience in various areas of personal finance. She previously worked as a staff writer for Kiplinger.com, focusing primarily on savings accounts and banking. In addition, she has freelanced for Bankrate, covering topics re...
With close to a decade of writing and editing experience, Maisha specializes in service journalism and has produced work in the lifestyle, financial services, real estate, and culture spaces. She uses her editing expertise to communicate complex topi...
With close to a decade of writing and editing experience, Maisha specializes in service journalism and has produced work in the lifestyle, financial services, real estate, and culture spaces. She uses her editing expertise to communicate complex topi...
Reviewed
With close to a decade of writing and editing experience, Maisha specializes in service journalism and has produced work in the lifestyle, financial services, real estate, and culture spaces. She uses her editing expertise to communicate complex topi...
With close to a decade of writing and editing experience, Maisha specializes in service journalism and has produced work in the lifestyle, financial services, real estate, and culture spaces. She uses her editing expertise to communicate complex topi...
To get the most out of your savings, you should choose a savings account with a high interest rate. Though it’s rare to find an account offering 5% annual percentage yield (APY) these days, you can still get relatively close.
We compared 73 high-yield savings accounts, looking at more than just interest rates. We considered minimum deposit requirements, restrictions on earnings, account fees and customer experience. See which accounts can help you work toward your savings goals, plus find out which other types of savings accounts could be suitable for you.
Best Savings Accounts Offering Close to 5.00% APY
EverBank Performance Savings
Minimum Deposit Requirement
Editor's Take
The EverBank Performance Savings account is a suitable option for individuals looking to grow their savings thanks to its high APY and lack of fees.
Why We Like It
The EverBank Performance Savings account earns 4.05% APY on all balances, and there is no minimum deposit requirement or monthly fees.
Why We Don’t Like It
EverBank has poor reviews on the App Store (2.4 stars) and Google Store (2.6 stars).
Who It’s Best For
The EverBank Performance Savings is best for individuals who want to earn a high APY while avoiding fees—and don’t mind a subpar app experience.
Pros & Cons
High yields
No monthly maintenance fee
No minimum balance or deposit requirements
Interest compounds daily
No live chat support
Bank branches limited to Florida
Details
- You’ll earn 4.05% on all balances, and interest compounds daily.
- There’s no minimum balance requirement or monthly maintenance fee. You’ll have access to more than 100,000 fee-free ATMs, and receive up to $15 per month in reimbursements when you’re charged a fee by an out-of-network ATM. There’s no fee for non-sufficient funds, returned deposit items, account closures or incoming wire transfers.
- Online bill pay is likewise fee-free, but you will owe 4.95forexpeditedelectronicbillpaymentsand4.95 for expedited electronic bill payments and 4.95forexpeditedelectronicbillpaymentsand14.95 for an expedited overnight bill payment.
- You will owe 25foroutgoingdomesticwiretransfers,and25 for outgoing domestic wire transfers, and 25foroutgoingdomesticwiretransfers,and35 for international wire transfers. There’s also a $25 charge to stop payments.
Ivy Bank High-Yield Savings Account
Minimum Deposit Requirement
Editor's Take
If you have at least $2,500 in savings, you could earn a competitive APY with the Ivy Bank High-Yield Savings account.
Why We Like It
Balances over 2,500(andbelow2,500 (and below 2,500(andbelow1 million) earn 3.85% APY. Plus, there are no monthly maintenance fees.
Why We Don’t Like It
We don’t like that this account has a high minimum deposit requirement and that balances under $2,500 only earn practically no APY.
Who It’s Best For
This account is best for individuals who feel comfortable maintaining a balance of at least $2,500 in their account.
Pros & Cons
Competitive yield on balances over $2,500
No monthly maintenance fee
Transfers and withdrawals may be limited to a total of six per calendar month
Only 0.05% APY on balances under $2,500
High minimum deposit requirement
No physical locations
Details
Interest is compounded daily and paid monthly. There is a limit of 250,000perdomesticwiretransferanda250,000 per domestic wire transfer and a 250,000perdomesticwiretransferanda25 fee for each transfer.
MSU Federal Credit Union Savings Builder
Minimum Deposit Requirement
Editor's Take
The MSU Savings Builder account earns a blended APY based on the funds in each balance tier. The portion of the account balance within each balance tier will earn that tier’s APY. APYs range from 0.98% to 5.00%.
Why We Like It
The MSU Savings Builder account has no monthly maintenance fee or minimum deposit requirement. The account pays a different dividend rate based on the amount of funds in each balance tier.
- Tier 1 ($0.00 to $999.99): 5.00% APY
- Tier 2 ($1,000.00 to $1,999.99): 3.62% to 5.00% APY
- Tier 3 ($2,000.00 and above): 0.98% to 3.62% APY
Why We Don’t Like It
We don’t like that balances of $2,000 and above only earn the Tier 3 rate of 0.98%.
Who It’s Best For
This account is best for individuals who want to earn one of the highest APYs currently available (5.00%) on balances up to $1,000 and don’t mind dealing with a complicated rewards structure.
Pros & Cons
Competitive yield
No minimum balance or deposit requirements
No monthly maintenance fee
Only balances up to $1,000 earn the highest yield
Must have an MSU checking account to open a Savings Builder account
Details
Interest is compounded daily and paid monthly. Since this is a blended-rate account, APYs don’t apply to the entire account balance but to the portion within each balance tier. The first 999.99earnstheTier1rate,999.99 earns the Tier 1 rate, 999.99earnstheTier1rate,1,000.00 to 1,999.99earnstheTier2rateand1,999.99 earns the Tier 2 rate and 1,999.99earnstheTier2rateand2,000.00 and above and above earns the Tier 3 rate.
The following accounts didn’t make our list of the top savings accounts offering APYs close to 5%, but they still offer solid APYs with minimal fees.
Most Popular is calculated from the number of times each affiliate product was selected by Forbes Advisor users over a six month time period.
Alternatives to 5% Savings Accounts
While savings accounts with a near-5% interest rate are excellent options for saving money and earning extra cash, other savings vehicles may better suit your financial goals.
Here are a few alternatives to consider.
High-Yield CDs
High-yield certificates of deposit (CDs) sometimes offer even higher rates than savings accounts. This is because when you open a CD account, you agree to lock your cash away for a fixed period of time. If you’re confident you won’t need to access your cash before the account’s maturity date, you could earn an impressive APY by opening a CD. Some of the best CD rates on the market are nearly 5%.
Money Market Accounts
Another alternative to a high-yield savings account is a money market account. These accounts typically carry high APYs, and many come with an ATM card to make accessing your money easier. Some of the best money market accounts currently offer APYs well over 4%.
Index Funds
Index funds have the potential to earn significantly higher returns than high-yield savings accounts and can keep pace with inflation over the long term. However, returns are not guaranteed, and there is a risk of loss.
401(k)
Contributing to a 401(k) is a good retirement savings strategy for those focused on long-term savings. Plus, many employers offer a 401(k) match to help you grow your savings even more.
Methodology
To create our list of the best 5% interest savings accounts, Forbes Advisor analyzed 73 high-yield savings accounts from 53 financial institutions, including traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 12 data points, including APY, restrictions and limitations, fees, access, customer experience and account minimums.
Below are the weights we assigned to each category:
- APY: 20%
- APY restrictions and limitations: 20%
- Fees: 20%
- Account minimums: 15%
- Customer experience: 15%
- Access: 10%
To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor reviews banks.
Find The Best High-Yield Savings Accounts
Frequently Asked Questions (FAQs)
How do I apply for a 5% interest savings account?
Though most savings accounts these days aren’t offering a 5% interest rate, you can find many accounts with rates above 4%. You can easily open one of these accounts online or in person.
Here’s the information you’ll likely need when applying:
- Phone number
- Email address
- U.S. residential address
- Date of birth
- Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Routing and account number to fund the account
Is my money safe in a high-yield savings account?
Yes, all the banks on this list are FDIC-insured for up to $250,000 per depositor per ownership category.
Do online banks have higher interest rates than traditional banks?
Yes. Online banks offer higher rates than traditional banks because they lack the overhead costs associated with maintaining physical branches. Offering high rates is also an effective way for banks to compete for customers and deposits.
How do I choose a savings account?
There are several factors to consider when choosing a savings account. Consider the account APY—and if you’ll need to meet any specific requirements to earn it—as well as any monthly fees, minimum deposit requirements and overall customer experience.
Next Up In Savings
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Erin Bendig has extensive experience in various areas of personal finance. She previously worked as a staff writer for Kiplinger.com, focusing primarily on savings accounts and banking. In addition, she has freelanced for Bankrate, covering topics related to credit cards. Erin combines her personal experiences with thorough research and is committed to sharing valuable personal finance advice with others.
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