7% Interest On Savings Accounts: What You Should Know
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As of Jan. 17, 2023, the national deposit rate for savings accounts is 0.33%, according to data from the FDIC. You know you can do better than that — and you’re probably right.
If there’s such a thing as a 7.00% interest savings account, you want to learn more about it. As you’re well aware, the higher the rate attached to your account, the more interest you’ll learn. Keep reading to find out where you can get the best interest rate for your money.
What Savings Account has the Highest Rate?
You want to maximize your money, so you need to find out: which bank is giving 7.00% interest on a savings account? This sky-high interest rate certainly isn’t the standard, and it’s actually offered on a checking account: the Premium Checking Account at Landmark Credit Union — not a savings account.
Slightly more than a 7% interest savings account, you can earn annual percentage yield (APY) with a Premium Checking Account at Landmark Credit Union. However, you’ll only earn this rate on balances up to $500. To be eligible for this rate, you’ll also need to enroll in e-statements and direct deposit.
10 Savings Accounts With High Interest Rates Right Now
Are you wondering, “Where can I get 6% interest on a savings account?” Right now, there are actually a few financial institutions that offer this notably high APY — assuming you meet certain terms and conditions, which isn’t always easy.
While not a 7.00% interest savings account, here’s a look at 10 other options with impressively high APY offerings.
9 Alternative Options Offering Competitive Interest Rates
If a high-yield savings account doesn’t seem like the right fit, you might be wondering, “How can I get 5% interest on my money?” You’ll be please to know there are plenty of money market accounts and certificates of deposit where you can score an above-average APY.
Take a look at these options to find out if any meet your needs.
Always Read the Fine Print
If you found a 7.00% 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.
1. Minimum Opening Balance
It’s easy to get excited about a savings account attached to a high interest rate, but it’s not uncommon for financial institutions to require a hefty initial deposit. For example, Popular Direct offers a APY on its High-Rise Savings Account, but you need a minimum of $5,000 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 a 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.
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 Harris 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.
It’s not easy to find a 7.00% interest savings account, but it is possible. If you’re able to secure a top-tier interest rate, that’s great.
However, many leading banks and credit unions also offer extremely competitive rates. Therefore, it’s important to shop around and find the all-around best option for both you and your money.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Jan. 25, 2023.
The CD rate for Marcus by Goldman Sachs is accurate as of Jan. 24, 2023, and requires a minimum deposit of $500 to open.
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Lending Club: Rates from 5.99% to 35.96%* APR. Best APR is available to borrowers with excellent credit.
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