Best 5% Interest Savings Accounts
We compared 73 online savings accounts offered by 53 nationally available banks and credit unions to find the best 5% interest savings accounts (or accounts with interest rates close to 5.00% APY). Learn why we picked each account, compare their pros and cons and access individual bank reviews.
Annual percentage yields (APYs) and account details are accurate as of June 3, 2023.
Varo Savings Account
4.3
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
3.00% to 5.00%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
On Fiona.com's Website
Annual Percentage Yield
3.00% to 5.00%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Why We Picked It
The Varo Savings Account is packed with automatic savings tools to help you reach your financial goals. In addition to earning up to 5.00% APY on balances up to $5,000 (see Details), it comes with two tools to automate your savings.
- The Save Your Change tool rounds up debit card purchases to the nearest dollar and deposits the difference into your savings.
- The Save Your Pay tool deposits a percentage of each paycheck into your savings.
Varo Bank is an online-only bank designed for on-the-go users. It has a highly rated mobile app and a large ATM network to help you manage money on the go.
In addition to the Varo Savings account, this bank offers a checking account with early direct deposits, a cash advance program for those who need small loans between paydays and a secured credit card for those looking to build credit.
Read our full Varo Bank Review.
Pros & Cons
- Very few fees
- Very competitive APY
- Automatic savings tools: “Save Your Pay” and “Save Your Change”
- Excellent digital services to manage your account
- Interest compounded daily
- No physical locations
- Higher APY only applies to balances under $5,000
- Charges $2.50 per out-of-network ATM transaction
- Requires a Varo Bank (checking) Account to open a Varo Savings Account
Details
In order to have a Varo Savings Account, you also must have a Varo Bank Account, which is an online checking account. Interest on the Varo Savings Account is compounded daily and credited monthly.
To earn 5.00% APY, customers must receive total direct deposits of $1,000 or more within each qualifying period, maintain a daily savings account balance of $5,000 or less for the entire calendar month and maintain balances above or equal to $0.00 in both savings and bank accounts for the entire calendar month.
UFB Premier Savings
4.1
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield Accurate as of 4/13/2023
Accurate as of 4/13/2023
Up to 4.81%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Annual Percentage Yield Accurate as of 4/13/2023
Accurate as of 4/13/2023
Up to 4.81%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Why We Picked It
The UFB Premier Savings account might not quite be a 5% interest savings account, but it’s still worth considering. It has two features that you’ll be hard-pressed to find with other high-yield savings accounts:
- It earns 4.81% APY on all balance tiers. There are no hoops to jump through or caps to watch out for.
- It comes with a complimentary ATM card, so you can easily withdraw cash.
This no-fuss account has all the features you want in a 5% interest savings account—a great interest rate with no activity requirements, no monthly fees and no minimum opening deposit requirements.
Pros & Cons
- Earns a high APY on all balances
- No cap or activity requirements to earn APY
- Comes with ATM card
- No monthly fees or minimum deposit requirements
- Small bank with limited products
- No savings tools
Details
You earn 4.81% APY on all balance tiers. No activity or minimums are required.
Salem Five Direct eOne Savings
3.8
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
5.01%
for deposits up to $1 million
Minimum Deposit Requirement
$10
Monthly Maintenance Fee
$0
Learn More
Read Our Full Review
Annual Percentage Yield
5.01%
for deposits up to $1 million
Minimum Deposit Requirement
$10
Monthly Maintenance Fee
$0
Why We Picked It
With the Salem Five Direct eOne Savings account, you can earn 4.10% APY on balances up to $1 million. All you need is a $10 deposit to open an account, with no minimum balance or monthly fees to worry about.
However, this account must be opened online and is only open to new Salem Five Bank customers or existing customers who have a Salem Five Direct eOne Checking Account.
Read our full Salem Five Direct Review.
Pros & Cons
- Exceptionally high APY
- No activity requirements to earn interest
- No monthly fee
- Low opening deposit requirement
- Existing customers must have an eOne Checking Account
- Account must be opened online, even if you live near a branch
Details
The Salem Five Direct eOne Savings Account is only open to new Salem Five customers or existing customers who have an eOne Checking account. Otherwise, you’re not eligible. You must fund your eOne Savings account with money from outside of Salem Five or Salem Five Direct.
MySavings Direct MySavings Account
3.7
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
4.35%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Learn More
Read Our Full Review
Annual Percentage Yield
4.35%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Why We Picked It
Although the MySavingsDirect MySavings Account doesn’t quite classify as a 5.00% interest savings account, it does boast a 4.35% APY with no fees or minimums. It’s an uncomplicated account that promises to do one thing right—pay you a solid interest rate on your savings.
But don’t expect a full-service banking experience. MySavingsDirect only offers two products: a savings account and certificates of deposit (CDs). There’s no mobile app, and the bank’s website is a bit dated.
However, as the online-only division of Emigrant Bank, it keeps its overhead low and passes those savings onto you in the form of generous interest rates. This account could be worth exploring if your primary goal is to earn a competitive yield on your savings balance.
Read our full MySavingsDirect Review.
Pros & Cons
- Competitive APY with no activity requirements
- No monthly fees
- No minimum balance requirements
- APY isn’t quite 5.00%
- Website lacks information and resources compared to competitors
- Small bank with few products
- No mobile app
Details
You earn 4.35% on your total balance. No activity or minimums required.
Digital Federal Credit Union Primary Savings Account
3.7
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
6.17%
Minimum Deposit Requirement
$5
Monthly Maintenance Fee
$0
Annual Percentage Yield
6.17%
Minimum Deposit Requirement
$5
Monthly Maintenance Fee
$0
Why We Picked It
If you’re in the market for a 5.00% interest savings account, you’ll be pleased to find out that Digital Federal Credit Union’s Primary Savings Account earns 6.17% interest.
But there’s one catch—you only earn 6.17% on the first $1,000 in your account (after that, the APY drops to just 0.16%).
If you’re just beginning your savings journey, DCU Primary Savings can jump-start your progress. But if your balance pushes $2,000 or more, you might earn more interest by going with another option on our list that pays a slightly lower APY but on your total balance rather than just a portion of it.
Pros & Cons
- Earns a 6.17% APY
- Low minimum deposit required
- No monthly fees
- Advertised APY only applies to first $1,000 in the account
- APY on the portion of your balance above $1,000 is negligible
- Must be a member to open
Details
Earn 6.17% on the first $1,000 in your account (after that, the APY drops to just 0.16%).
Digital Federal Credit Union is based in Massachusetts, but anyone can join by making a $10 donation to Reach Out for Schools, a nonprofit that raises money for classrooms.
Summary: Best 5% Interest Savings Accounts
| Bank/Credit Union | Company - logo | Forbes Advisor Rating | Forbes Advisor Rating - Image | Annual Percentage Yield | Minimum Deposit Requirement | Monthly Maintenance Fee | Learn More CTA text | Learn more CTA below text | LEARN MORE |
|---|---|---|---|---|---|---|---|---|---|
| Varo Savings Account |  | 4.3 |  | 3.00% APY without charging a monthly fee and up to 5.00% APY by meeting specific requirements each month | $0 | $0 | Learn More | On Fiona.com's Website | |
| UFB Premier Savings |  | 4.1 |  | 4.81% APY on all balance tiers | $0 | $0 | View More | ||
| Salem Five Direct eOne Savings |  | 3.8 | | 5.01% for deposits up to $1 million | $10 | $0 | Learn More | Read Our Full Review | |
| MySavings Direct MySavings Account |  | 3.7 |  | 4.35% | $0 | $0 | Learn More | Read Our Full Review | |
| Digital Federal Credit Union Primary Savings Account |  | 3.7 | | 6.17% | $5 | $5 | View More |
Methodology
To create our list of the best 5% interest savings accounts, Forbes Advisor analyzed 73 high-yield savings accounts from 53 financial institutions, including traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 12 data points within the categories of APY, restrictions and limitations, fees, access, customer experience and account minimums.
Below are the weights we assigned to each category:
- APY: 20%
- APY restrictions and limitations: 20%
- Fees: 20%
- Account minimums: 15%
- Customer experience: 15%
- Access: 10%
As a result, accounts with the highest APYs and lowest restrictions and fees ranked highest on our list.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
How To Choose a 5% Interest Savings Account
When looking for the best 5% interest savings account to fit your needs, here are a few things to keep in mind:
- Find a competitive APY. The best 5% interest savings account should offer an APY around 4% to 5%. Anything less than that, and you might not be getting the best deal.
- Look for restrictions. Just because a 5% interest savings account has a high APY doesn’t mean you’ll earn that rate on your entire balance. Read the fine print to see if the interest rate only applies to a portion of your balance and if there are any requirements to earn it.
- Compare fees. Many banks and credit unions offer high-yield savings accounts with no monthly fees, but it’s still worth checking to make sure. Any fees you pay will eat into the interest you earn.
- Consider the customer experience. How easy is it to access your money? Can you deposit and withdraw funds quickly, or does it take days? Consider the customer service options that a bank or credit union offers as well.
How To Apply for a 5% Interest Savings Account
You can open any of the best 5% interest savings accounts online, and it usually takes 15 minutes or less. Just follow these steps:
- Research institutions that offer 5.00% interest savings accounts to find one that best suits your needs.
- Navigate to that bank’s website, and start the application process online.
- Provide your name, address, Social Security number and other personal information to open the account.
- Verify your identity using a valid driver’s license or passport, if you’re asked to upload one.
- Submit your initial deposit.
Once you’ve completed these steps, consider setting up savings builder tools, such as round-ups or recurring automatic deposits into your savings account.
Alternatives to High-Interest Savings Accounts
If you don’t think a 5% interest savings account is right for you, there are other ways to save money and earn interest. Here are a few options to consider:
- High-yield CDs. The best CD rates are generally higher than savings account rates. This is because you agree to lock your money up for a set period of time in exchange for a higher yield. If you know you won’t need your money for a while, opening a CD can be a low-risk way to get started with investing.
- Money market accounts: Like high-yield savings accounts, the best money market accounts offer higher interest rates than traditional savings accounts. Plus, many come with an ATM card and even checks, so you can access your money more conveniently.
- Index funds: Index funds offer diversification and the potential for an even higher return than the best 5% interest savings accounts. But because your money is in the stock market, there’s always the risk of loss.
- 401(k): Making regular contributions to your 401(k) can be a great way to save for retirement and grow your wealth for the long term. You can invest in stocks, bonds and other assets within your 401(k) account. Plus, you may get an employer match to sweeten the deal.
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