Can You Earn 7% Interest on Savings Accounts?

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There may be no better feeling than passively padding your bank account while letting your money sit there and earn interest at higher rates. With the daily dips of your debit card or credit card constantly pinging, it’s nice to know not every transaction is a deficit. It may seem obvious to shoot for the higher APY amount on account offerings, but be sure to familiarize yourself with all the details before opening a savings account earning 7%.

Where Can I Get 7% Interest on My Money?

You want to maximize your money, so you need to find out which bank is giving 7% interest on a savings or deposit account. This sky-high interest rate certainly isn’t the standard, and it’s actually only offered on two checking accounts: the Premium Checking account at Landmark Credit Union and the OnPath Rewards High-Yield Checking. Though it’s not a savings account, you can currently earn these annual percentage yields, or APYs, if you meet the requirements of either account.

Savings rates can fluctuate, and different account offerings each come with varying compound interest, raised rates or early withdrawal penalties. Make sure you are comfortable with the requirements of any account you open and that it best fits your financial situation.

Best Alternative Accounts and CD Rates

If a high-yield savings account doesn’t seem like the right fit, worry not, you have other options. You’ll be pleased to know banks offer plenty of  money market accounts and certificates of deposit where you can score an above-average annual percentage yield.

Take a look at these options to find out if any meet your needs.

Top 10 High-Interest Savings Accounts

Right now, there are a few financial institutions that offer notably high APYs. Make sure to look for and be aware of the fine print that comes with earning these high-interest rates.

While not a 7% interest savings account, here’s a look at 10 other options with impressively high APY offerings.

Always Read the Fine Print: What You Need To Know

If you found a 7% interest savings account that seems to meet your needs, you’re probably pretty excited. However, your work isn’t done yet. Here’s a look at five key points you’ll want to cover before making the final decision to open an account.

• Minimum balance requirements
• Maximum balance for APY
• Fees
• FDIC or NCUA Coverage
• Access to funds

1. Minimum Balance Requirements

It’s easy to get excited about a 7% interest savings account, but it’s not uncommon for financial institutions to require a hefty initial deposit or opening balance. For example, MySavingsDirect offers a APY on its High Interest Savings account, but you need a minimum of $1,000 to open an account.

2. Maximum Balance for APY

Financial institutions don’t have to pay the highest APY on your entire account balance — and many don’t. For example, Mango offers up to APY on its Mango Savings account, but only on balances up to $2,500. After that, the rate drops considerably. This can have a major impact on your ability to earn interest, so it’s important to know this in advance. You might find securing a lower interest rate that covers your entire balance will actually allow you to earn more in the long term.

3. Fees

Some savings accounts come with monthly maintenance fees or certain incidental charges that can add up fast. It’s important to be aware of these fees before opening an account, because they can potentially impact your balance. For example, the BMO Online  High-Yield Savings Account has a $50 account closing fee — if the account is closed within 90 days of opening. Reading the account disclosures is a must, as not doing so can be costly.

4. FDIC or NCUA Coverage

You work hard for your money, so it’s important to make sure your bank or credit union is federally insured. The Federal Deposit Insurance Corporation provides coverage for banks, while the National Credit Union Administration insures credit unions. Both offer $250,000 worth of coverage per share owner, per financial institution, in each account ownership category. If the bank or credit union fails, this serves as a guarantee you won’t lose your money.

5. Access To Funds

Unlike CDs, savings accounts — and money market accounts — typically allow you to withdraw as much money as you want, when you want. However, there are some caveats. You might face a fee or penalty if your balance falls below a certain level, and many banks charge a fee for making more than six withdrawals within a statement period. Before opening an account, find out what you’ll need to do — and what fees you’ll face — to withdraw money from your account. For example, if you’ll receive an ATM card, find out if there are any locations in your local area or if the financial institution offers complimentary access to an ATM network. The last thing you want is to need your money quickly, but have to jump through hoops to get your hands on it.

Final Take To GO

The national average deposit rate for savings accounts is 0.47%, according to data from the FDIC. That doesn’t mean you have to settle for average, in fact, you can probably earn more interest than you currently are no matter if you prefer in-person or online banking. It just helps if you know where to look.

Caitlyn Moorhead contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Jan. 17, 2024.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

*Capital One interest rates accurate as of 4/5/24. See website for all current rates.

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