All You Need To Know – Forbes Advisor

When rates are on the rise, finding savings accounts with 5% interest rates is doable—even easy. But is it possible to top that? Are there any banks offering 7% interest savings accounts?

Learn what the highest rates are and how to find them to get the best returns on your money.

Can You Get a 7% Interest Savings Account?

While there are plenty of banks offering competitive rates, finding a 7% interest savings account is no small feat. Given the current savings rate forecast, it’s not uncommon to find high-yield savings accounts with rates close to 5%, with a few even going above that mark. But it’s a rare account that earns a 7.00% annual percentage yield (APY).

There aren’t any traditional banks offering a 7% interest savings account in the U.S., but you will find some credit unions that offer checking accounts and certificates with rates near or above 7.00% APY.

It’s important to note that savings account rates are variable and can change at any time. Newer online banks and credit unions may offer 7% interest savings accounts to attract new customers, only to drop rates later on. You may also have to meet certain balance or activity requirements to earn the 7% interest rate or only earn this rate on a portion of your balance.

Which Bank Gives 7% Interest on Savings Accounts?

While there aren’t any banks offering a 7% interest savings account, the following credit unions offer certificate and checking accounts with rates near or above 7.00% APY. These rates are subject to change at any time and are accurate as of January 2, 2024.

Digital Federal Credit Union Primary Savings

• APY: 6.17% on balances up to $1,000
• Monthly maintenance fee: $0
• Minimum deposit to open: $5

Digital Federal Credit Union’s Primary Savings account is offering 6.17% APY on the first $1,000 you deposit. Any portion of your balance over $1,000 will earn a dividend rate of 0.15%. Rates are variable and can change at any time.

While this isn’t quite 7.00% APY, it’s as close as you can currently get with a savings account. Keep in mind that you only earn the 6.17% APY on the first $1,000 in your account, so if you plan on holding a much higher balance in your savings account, you might actually earn more interest with a high-yield savings account that earns a lower rate on all balances. That said, this account has no monthly maintenance fee and a low minimum opening deposit requirement.

DCU is a credit union, so you’ll have to become a member to open an account. If you don’t live in Massachusetts or work for one of DCU’s participating employers, you can still become a member by joining nonprofit Reach Out for Schools and paying a $10 membership fee.

Landmark Credit Union Premium Checking

• APY: 7.50% on balances up to $500
• Monthly maintenance fee: $0
• Minimum deposit to open: $35

Landmark Credit Union’s Premium Checking account is offering 7.50% APY on balances up to $500 after enrolling in eStatements and receiving at least $250 per month in eligible direct deposits.

Is this the best savings account for earning a 7.00% APY? Not exactly, since it’s a checking account, and you’ll only earn the higher APY on the first $500 in your account. And while this account charges no monthly maintenance fee, it does charge a $20 account closing fee on accounts closed within the first 90 days.

Alpena Alcona Area Credit Union Certificate of Deposit (not currently available)

• APY: 7.19%
• Monthly maintenance fee: $0
• Minimum deposit to open: $500

Alpena Alcona Area Credit Union (AAACU) previously offered a seven-month share CD with a 7.19% APY—though that rate wasn’t around for long. The minimum deposit to open the CD was $500, with interest compounded quarterly. The maximum deposit was $7,000, and only one CD is allowed per member. If you needed to withdraw funds before the seven-month term ends, an early withdrawal penalty would be applied.

An AAACU membership was required to take advantage of this offer. You’re eligible to become a member if you:

• Live, work, own real estate, attend school or worship anywhere in the state of Michigan
• Are an AAACU employee
• Are the spouse of a deceased member and have not remarried when joining
• Belong to the immediate family of an existing member

You’ll need to open a share savings account when joining AAACU to secure your place as a member. The minimum deposit for AAACU CDs is $5, and applications are accepted online or at AAACU branches.

How To Get a Higher Than 7% Interest Rate on a Savings Account

Earning more than 7% interest in a savings account is typically not possible. Even in a high-rate environment, it’s unlikely you’ll find a high-yield savings account, CD or high-yield checking account that offers more than 7.00% APY.

If you want to earn more than 7% on your money, you’ll probably need to invest it. However, investment accounts are riskier than bank accounts. While savings accounts are FDIC-insured and can’t lose money, investment accounts aren’t usually insured against losses. And while you may earn more than 7% investing, you may also lose money. It all depends on how your investments perform.

Alternatives to 7% Interest Savings Accounts

All of the 7% interest accounts mentioned earlier require you to join a credit union, and some only earn interest on a small portion of your balance. If you’re looking to maximize your earnings and avoid other restrictions, consider these alternatives.

High-Yield Savings Accounts

Researching the best high-yield savings accounts at different banks can help you find accounts that earn a competitive APY on your entire balance—often without balance or activity requirements. There are a number of 5% interest savings accounts that may actually help you earn more in the long run. Below are a few of the best savings options to consider now.

Certificates of Deposit (CDs)

Savings account rates can drop at any time. If you want to lock in a high APY while rates are favorable, you could consider a 7% interest CD.

While these can be hard to find too, the best CD rates are often higher than the best savings rates. Several credit unions offer CD rates close to or at 6.00% APY as of January 2024. CD rates are fixed, so you’re guaranteed to earn the APY you lock in to for the duration of the CD term, but you usually can’t withdraw your money without incurring a penalty.

Money Market Accounts (MMAs)

The best money market rates can also be higher than savings rates. Money market accounts combine features of savings accounts and checking accounts. You can earn a higher interest rate on your money, and these accounts may also come with an ATM card, debit card or paper checks. Like a savings account, however, you may be limited to six withdrawals per month.

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