10 interest savings accounts offering 5% APY

As a result of rampant inflation and high borrowing costs, Americans have faced a number of financial challenges over the past few years. However, there has been a bright spot in this: interest rates on deposit accounts have skyrocketed, including money market accounts, CDs, and high-yield savings accounts.

A high-yield savings account today offers an annual percentage yield (APY) of 5%, which means if you deposit $10,000 today, you will earn $500 more over a year.

Check out our list of high-yield savings accounts with the highest rates widely available across the nation if you’re wondering where to find them.

Best savings accounts with 5% interest

• Best overall: Western Alliance Bank Savings Account
• Best for earning a high APY: Newtek Bank Personal High Yield Savings
• Best for no fees: Bask Interest Savings Account
• Best for easy access to your cash: Panacea High-Yield Savings Account
• Best for ATM card: UFB High Yield Savings (previously known as UFB Priority Savings)
• Best if you want extra help saving: Varo Savings Account
• Best for checking/savings combo: Laurel Road High Yield Savings
• Best for low deposits: Mango
• Best for large deposits: CIT Bank Platinum Savings
• Best for money market account: CFG Bank High Yield Money Market Account

Compare offerings to find the best savings account

Currently, the average savings account rate nationwide is 0.42%, compared to 0.10% this time last year. But do you have to settle for such low rates? The answer is absolutely not.

Many financial institutions have raised interest rates on products like savings accounts and certificates of deposit (CDs) in response to interest rate hikes by the Federal Reserve.

Now is the time to shop around for a high-yield savings account, especially when the best banks pay 5% or more.

# Western Alliance Bank Savings Account

• Annual Percentage Yield (APY)

  5.20% APY

• Minimum balance

  $1 minimum deposit

• Monthly fee

  None

• Maximum transactions

  Up to 6 transactions each month

• Excessive transactions fee

  The bank may charge fees for non-sufficient funds

• Overdraft fee

  No overdraft fee

• Offer checking account?

  No

• Offer ATM card?

  No

  A Western Alliance Bank Savings Account offers 5.20% APY and requires just a $1 minimum deposit to open an account. There is no limit on the 5.20% APY, making this the best overall 5% APY savings account. Western Alliance Bank’s savings products are powered by Raisin, which means savers’ accounts are opened and managed on Raisin.com.

   

# Newtek Bank Personal High Yield Savings

• Annual Percentage Yield (APY)

  5.25% APY

• Minimum balance

  $0.01 to earn interest

• Monthly fee

  None

• Maximum transactions

  Up to 6 free withdrawals or transfers per statement cycle; transaction amount limits apply; withdrawals from your account can only be transferred to the original external funding source

• Excessive transactions fee

  None

• Overdraft fee

  None

• Offer checking account?

  Only a business checking account

• Offer ATM card?

  Yes, if have a Newtek checking account

  In the Newtek Bank Personal High Yield Savings account, you’ll earn 5.25% APY on a balance of just $0.01. The account does not require a minimum deposit and does not have a cap on the amount of interest you can earn. Previously known as the National Bank of New York City (NBNYC), Newtek Bank has recently been acquired and rebranded as part of NewtekOne.

   

# Bask Interest Savings Account

• Annual Percentage Yield (APY)

  5.00% APY¹

• Minimum balance

  None

• Monthly fee

  None

• Maximum transactions

  Up to 6 free withdrawals or transfers per statement cycle

• Excessive transactions fee

  None

• Overdraft fee

  None

• Offer checking account?

  No

• Offer ATM card?

  No

  It offers 5.00% APY to all savings account holders, with no monthly fees and no minimum requirements, making it the best choice if you are looking for no fees.

  Save with a Bask Mileage Savings Account and earn American Airlines AAdvantage® miles back instead: Earn 2.5 miles for every $1 saved annually. Savers can then use their miles for flights on American Airlines or any of its 20+ partner airlines. A division of Texas Capital Bank, Bask Bank operates entirely online.

   

# Panacea High-Yield Savings Account

• Annual Percentage Yield (APY)

  4.80% APY

• Minimum balance

  $25 minimum deposit

• Monthly fee

  None

• Maximum transactions

  There are no restrictions on the number of withdrawals per month from a savings account

• Excessive transactions fee

  None

• Overdraft fee

  None

• Offer checking account?

  Yes

• Offer ATM card?

  Yes, if have a Panacea checking account

  A minimum $25 deposit is required to open a Panacea High-Yield Savings Account and earn 4.80% APY. The account has no monthly fee and no minimum balance requirement, but we particularly like the fact that it’s accessible: Account holders can withdraw unlimited amounts from their savings each month.

   

# UFB High Yield Savings

• Annual Percentage Yield (APY)

  Earn up to 5.25% APY

• Minimum balance

  None

• Monthly fee

  None

• Maximum transactions

  No max number of transactions; max transfer amounts may apply

• Excessive transactions fee

  None

• Overdraft fee

  Overdraft fees may be charged, according to the terms, but a specific amount is not specified; an overdraft protection service is available

• Offer checking account?

  No

• Offer ATM card?

  Yes

  As of the time of writing, all balance tiers earn this same APY on the UFB High Yield Savings account, which offers a high 5.25% interest rate with no cap.

  With this account, savers can deposit as little as $1 or as much as $100 and earn the same high APY. UFB Direct is Axos Bank’s online division.

  When UFB raises its APY, the bank sometimes changes the name of its savings accounts, and it doesn’t automatically enroll existing customers in new accounts. If UFB increases the APY on an account, customers should contact the bank to make sure they are enrolled in the best account.

   

# Varo Savings Account

• Annual Percentage Yield (APY)

  Begin earning 3.00% APY and qualify to earn 5.00% APY if meet requirements

• Minimum balance

  $0.01 to earn interest

• Monthly fee

  None

• Maximum transactions

  Up to 6 free withdrawals or transfers per statement cycle

• Excessive transactions fee

  None

• Overdraft fee

  None

• Offer checking account?

  Yes

• Offer ATM card?

  Yes, if have a Varo Bank Account

  There are two requirements to qualify for 5.00% APY on balances up to $5,000 in a Varo Savings Account:

  A> Monthly direct deposits of $1,000 or more

  B> Having a positive balance in both the Varo Bank Account and Varo Savings Account at the end of the month

  In a year, savers who keep their balance at $5,000 will earn $250 in interest.

  There is no minimum balance requirement to earn this standard 3.00% APY at Varo Savings, which is a part of Varo Bank, a national bank with all-mobile services.

  For those who want extra help saving, the online bank offers two programs that automatically transfer money from your Varo bank account to your savings account: Save Your Pay, which transfers a percentage of your paycheck into your savings account, and Save Your Change, which rounds up your checking account transactions to the nearest dollar and transfers the difference to your savings account.

   

# Laurel Road High Yield Savings

• Annual Percentage Yield (APY)

  5.00% APY

• Minimum balance

  None

• Monthly fee

  None

• Maximum transactions

  None

• Excessive transactions fee

  None

• Overdraft fee

  $20 per overdraft item when the end-of-day overdraft balance is greater than $20

• Offer checking account?

  Yes

• Offer ATM card?

  Yes, if have a Laurel Road checking account

  Laurel Road is widely known for refinancing student loans, but the digital banking arm of KeyBank recently launched Laurel Road High Yield Savings. With no minimums required and no monthly fees, this savings account offers 5.00% APY.

  The Laurel Road Loyalty CheckingSM — a rewards checking account — is also offered by Laurel Road. For as long as the account is open, account holders receive a $20 cash reward for every qualifying ACH direct deposit they make during the first 12 months, and a $10 cash reward every month thereafter. As an added bonus, Laurel Road offers a $300 welcome bonus.

   

# Mango Prepaid Mastercard

• Annual Percentage Yield (APY)

  6.00% APY on up to $2,500 if make signature purchases of $1,500 or more and have a minimum balance of $25 at the end of the month (after, 0.10% APY for balances over $2,500; $5,000 cap)

• Minimum balance

  $25

• Monthly fee

  None

• Maximum transactions

  Up to 6 transfers out each month and transfer amounts to savings apply

• Excessive transactions fee

  None

• Overdraft fee

  None

• Offer checking account?

  No

• Offer ATM card?

  Yes, offers prepaid debit card

  Mango Prepaid Mastercard® cardholders (issued by Metropolitan Commercial Bank) can earn up to 6.00% APY on balances up to $2,500 by meeting two requirements:

  A> Have a minimum deposit of $25 and a minimum balance at the end of the month

  B> Each month, make signature purchases of $1,500 or more on the Mango Prepaid Mastercard

  This account has the best interest earnings for small deposits (up to $2,500) because it earns $150 in interest a year if you max out your balance. We recommend switching any savings above $2,500 to a high-yielding bank account as the APY thereafter is a low 0.10% over $2,500.

   

# CIT Bank Platinum Savings

• Annual Percentage Yield (APY)

  4.95% APY on balances of $5,000 or more; balances less than $5,000 earn 0.25% APY

• Minimum balance

  $100 minimum deposit

• Monthly fee

  None

• Maximum transactions

  Up to 6 free withdrawals or transfers per statement cycle

• Excessive transactions fee

  $10 per transaction up to $50 per month

• Overdraft fee

  None

• Offer checking account?

  Yes

• Offer ATM card?

  Yes, if have a CIT Bank checking account

  With a balance of $5,000 or more, CIT Bank Platinum Savings offers 4.95% APY — the best option for savers. Savings accounts that earn less than $5,000 earn just 0.25% APY, which is why we recommend this account only to savers who have at least $5,000 in their bank account. There is no monthly fee on the savings account.

   

# CFG Bank High Yield Money Market Account

• Annual Percentage Yield (APY)

  Up to 5.17% APY

• Minimum balance

  $1,000 minimum deposit; $1,000+ minimum balance to obtain APY

• Monthly fee

  $10, with an option to waive if the account maintains a minimum $1,000 balance

• Offer checks?

  No

• Offer debit/ATM card?

  No

  Even though CFG Bank’s High Yield Money Market Account is called a money market, it doesn’t offer check-writing privileges, debit cards, or ATM access; it functions instead like a savings account.

  For the 5.17% APY on the CFG Bank High Yield Account, a minimum deposit of $1,000 is required. Even though this is a higher minimum than others on this list, it ultimately benefits the saver; the higher the balance, the higher the interest earnings will be.

  The 5.17% APY has no cap, which means savers can deposit as much as they want and still earn that high rate.

   

Frequently Asked Questions (FAQs):

• How does APY work?

In a nutshell, APY is the amount of interest an account earns in a year.

• Which high-yield savings account offers the highest APY?

Currently, the CFG Bank High Yield Money Market Account (listed above) offers 5.17% APY without a cap, and requires a $1,000 deposit to open.

• Can you tell me what other banks offer in terms of APY?

High-yield savings accounts generally offer rates between 3% and 5% APY, but traditional savings accounts offer rates closer to the national savings average of 0.42% APY.

• The best way to navigate varying high-yield savings rates

This list is a good place to begin your search for a high-yield savings account offering one of the most attractive returns on your cash. With these accounts, you don’t really have to worry about earning a good return because all of them offer an APY of around 5% or so. Focus on what matters most to you instead of the varying rates — perhaps you want an account that has easy access to cash, an ATM card, or tools to help you save more.

• Would you be able to get an APY of 5%?

These days, you can find more and more savings accounts that offer around 5% APY in order to compete with other banks. If you want to earn 5% interest on your savings, this list is a great place to start.

• Savings account with 5% interest: How to choose one

Be mindful of the fine print when choosing a 5% APY savings account. There are often caveats attached to banks’ above-average APYs.

In most cases, you can earn the high APY only on a balance up to $1,000; for example, earning 5% APY but only on a balance up to $1,000. This can limit your interest earnings, so you can’t maximize your savings much.

For a 5% APY account or to earn interest, the minimum deposit may also be high. Make sure it is an amount you were planning on putting into a savings account.

• Applying for a 5% interest savings account

If you wish to open a 5% APY savings account, visit the website of the account you wish to open. To open a savings account, you need a government-issued ID like a passport or driver’s license, your Social Security number, your address, contact information, date of birth, and a routing number for your checking account. It takes less than 10 minutes to apply.

• Is it possible to lose money in a high-yield savings account?

Savings accounts at FDIC-insured banks are protected from capital loss up to $250,000. Although interest rates may decrease, your cash will remain the same. In theory, your money could lose value if inflation rose faster than your APY, but this isn’t different from a traditional savings account. It is therefore safe and worthwhile to open a high-yield savings account.