Best 7% Interest Savings Accounts of February 2025 (original) (raw)
It would be nice to get a 7% annual percentage yield (APY) on a savings account. This is virtually impossible right now, but a handful of banks currently offer rates above 5% — the highest on the market.
We at the MarketWatch Guides team will detail savings accounts with high yields and discuss alternative investments that could pay 7%. We’ll also offer tips on maximizing your earnings.
Key Takeaways
- Our picks for the best high-yield savings accounts include Bask Bank, Zynlo Bank and EverBank.
- While you likely won’t find 7% interest savings accounts in 2024, several financial institutions offer APYs around 5%.
- Online banks and credit unions typically offer high-yield savings accounts.
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Featured Savings Accounts
FEATURED
Lending Club
4.3
APY 3.50%
Bonus N/A
Min. Deposit Amount $0
Earn up to 4.75% APY with $250+ deposits per month
SoFi Checking + Savings
4.8
APY 3.80%
Bonus Up to $300
Min. Deposit Amount $0
SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either 50(withatleast50 (with at least 50(withatleast1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR 300(withatleast300 (with at least 300(withatleast5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.
UFB Portfolio Savings
4.6
APY 4.01%
Bonus N/A
Min. Deposit Amount $0
Unlock up to 4.21% APY, Combine Freedom Checking with Portfolio Savings to boost your savings APY by up to 0.20%
Discover
4.6
APY 3.75%
Bonus N/A
Min. Deposit Amount $0
Our Picks for the Best High-Yield Savings Accounts
The best high-yield savings accounts listed below have APYs of 5% or higher and have low or no monthly fees. Many also have no minimum opening deposit, and all financial institutions on this list include Federal Deposit Insurance Corp. (FDIC) insurance of at least $250,000 per depositor, per bank.
| Bank | Our Savings Rating | APY | Minimum Deposit | Best For |
|---|---|---|---|---|
| Bask Bank | 4.7 | 4.50% | $0 | Best for Quick Account Set-up Process |
| Zynlo Bank | 4.5 | 5.00% | $10 | Best for Roundup Savings Tools |
| EverBank (formerly TIAA Bank) | 4.5 | 4.30% | $0 | Best for Fast Deposits |
*APYs accurate as of November 15, 2024
Can You Get a 7% Interest Savings Account?
Right now, 7% interest rates on savings accounts aren’t available. The FDIC reports that the national average rate for savings accounts is only 0.46%, and its national rate data going back to 2009 shows that savings rates have historically stayed even lower than that. Once the Federal Reserve started raising rates in 2022, savings rates began climbing and peaked in late 2023. Sources such as CME FedWatch predict that rates will fall again later this year.
If you can accept a lower return, some high-yield accounts offer above-average rates of around 5%. Getting this APY can involve catches, though. Your bank might set a high minimum balance requirement, require a minimum direct deposit amount or limit the top rate to a small account balance. Still, you can find many options without catches, monthly fees or hefty minimum opening deposit requirements.
Where To Find a 7% Interest Rate
Although a savings account won’t get you a 7% return, other investment strategies could provide higher earnings in exchange for more risk and no guarantee. For example, you could invest in stocks, which have a 10.4% average yearly return, or put money in bonds, which have a close 6.8% average yearly return, according to investment firm Charles Schwab. Other common options include exchange-traded funds and mutual funds, which are also good for diversification.
While you can access cash through gains and dividends with these investments, you should consider your financial situation and risk tolerance. Unlike with savings accounts, stocks and bonds have the potential to lose money, and the risk varies depending on the investment. Consider whether you can hold investments long enough to ride out the ups and downs and average a good return.
Also, your day-to-day cash needs are important to consider, since you would need to sell your investments if you need the cash. Someone on the market will need to be willing to buy them when you’re ready to sell. Plus, you risk getting less than you originally paid for them. High-yield savings account withdrawals are more straightforward.
How to Choose a High-Yield Savings Account
Before choosing a high-yield savings account, shop around for the highest APYs and lowest fees. But remember that you’re seeing variable rates that don’t promise a continued high return. Read the fine print for minimum deposit requirements and rules for the advertised APY. Make sure any minimum balance or account activity requirements are sustainable. You should also research features such as deposit options, ATM card access and savings tools.
Picking a reputable credit union or bank for your high-yield account is essential. To avoid losing your money from a potential bank failure, verify the institution has deposit insurance through the FDIC or National Credit Union Administration (NCUA). You should also check the financial strength rating on the Bauer Financial website. To see reviews and reputation information, look the bank up on the Better Business Bureau website.
Maximizing Savings Account Interest Earnings
If you open a high-yield savings account, take steps to reach any minimum balance requirement that gets you the highest rate. If you don’t make a large enough deposit upfront, you might plan on using direct deposit, setting up automatic transfers or putting future windfalls in the account. Try not to withdraw the money so you can maximize your interest and keep your balance up.
Carefully read your account documents for fine print about account activity requirements, fees and balance caps.
If required, use direct deposit or make the required number of card transactions to qualify for the top APY. Find out how you can waive any monthly maintenance fee. And if there’s a balance cap, consider saving excess money in another high-yield account.
The Bottom Line
Even though the highest available savings rates likely won’t last, opening your account now will help you start growing your savings. Just check out the bank and account carefully so that you find any catches that would make it hard for you to get the advertised rate. You should also compare rates alongside any fees and sign up only with a trusted, insured institution.
If you’re considering other investments to earn 7%, remember that you’ll deal with more risk than if you get a high-yield savings account. While the return might look appealing, there is no guarantee, and you could even lose money. Consider talking to an investment professional first.
Frequently Asked Questions About 7% Interest Savings Accounts
A common catch with some high-yield savings accounts is a minimum balance requirement. Other catches can include interest caps, short-time promotional rates and monthly activity requirements.
While traditional banks spend a lot to run their branches, online-only banks don’t have these costs, so they can afford to pay customers such high-yield savings rates. This often leads to lower fees as well.
Although managing multiple accounts takes more work, you can have high-yield savings accounts through as many banks as you want. You might do this to take advantage of certain promotions, including getting high rates on a capped balance.
Unless you have a fixed-rate account like a certificate of deposit, your earnings will decrease if your bank decides to lower interest rates. This makes variable-rate bank accounts less predictable as economic conditions change.
Financial institutions offering high-yield savings accounts are low risk when they have NCUA or FDIC insurance. Avoid uninsured institutions if you don’t want to risk potentially losing your deposit amount.
While both are places for storing money safely, a high-yield savings account should offer a much higher return than a traditional savings account. Another difference is that credit unions and online banks are the main providers of high-yield savings accounts.
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
Our list of the best high-yield savings accounts is made up of the six financial institutions with the highest ratings in the savings account category of our reviews and an APY of 5% or higher.
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.