Best 5% Interest Savings Accounts (2024)

It used to be that you had to work hard to find ways to get close to 5% interest on a savings account. But today, there are many online banks and savings accounts that are paying 5% (or more) interest - many times without fees or "hoops" to jump through. If you're looking for great ways to boost your savings, this is the list for you.

Given that the national average for savings rates is just 0.47% according to the FDIC, getting 5% or more is a huge win. Remember, the more interest you can earn, the more passive income you'll have to grow your wealth.

Let's break down the best 5% interest savings accounts and banks for your money.

1. Western Alliance Bank - 5.36% APY

Western Alliance Bank is one of the largest commercial banks in the United States, and they are now offering an amazing personal savings account. In partnership with Raisin, you can open a high-yield savings account at Western Alliance Bank online.

This account has just a $500 minimum deposit to open and no monthly maintenance fees.

Right now, you can earn5.36%APY on your deposits. And yes, it's FDIC insured!

OPEN AN ACCOUNT

2. Customers Bank - 5.26%APY

Customers Bankwas founded in 2009 and is now one of the top 100 banks in the United States. Even better, it has an awesome online savings account. In partnership with Raisin, you can open a high-yield savings account at Customers Bank online.

This account has just a $1 minimum deposit to open and no monthly maintenance fees.

Right now, you can earn 5.26%APYon your deposits. And yes, it's FDIC insured!

Read our fullCustomers Bank review here.

OPEN AN ACCOUNT

Vio Bank has historically been known for having a great rate on their savings accounts. But they launched theirCornerstone Money Market Account, which has a fantastic interest rate with a low minimum deposit.

You can currently get5.30%APYwith just a $100 minimum opening deposit. There are no monthly fees or other minimum balance requirements.

Vio Bank is FDIC insured as a division of MidFirst Bank.

Read ourfull Vio Bank review here.

OPEN AN ACCOUNT

4. American First Credit Union - 5.26% APY

American First CU Money Market Accountis a solid option at a nationwide credit union! If you're looking to a solid credit union to park your savings, check this one out.

You can currently get5.26%APYwith just a $1 minimum opening deposit.

Read our fullAmerican First Credit Union review here.

Open an account here >>

OPEN AN ACCOUNT

5. The Atlantic Credit Union - 5.30% APY

Atlantic Federal Credit Union Money Market Accountis a solid option at one of the oldest credit unions in the United States! If you're looking to a solid credit union to park your savings, check this one out. Their goal is to deliver great financial products at the lowest possible cost.

You can currently get5.30%APYwith just a $1 minimum opening deposit.

Open an account here >>

OPEN AN ACCOUNT

6. Ponce Bank - 5.28% APY

Ponce Bankis a New York bank that has been around since the 1960s. They have 14 branches located throughout New York and New Jersey.

In partnership with Raisin, they're offering this great money market account that just requires a $1 minimum deposit to open.

Right now, you can earn5.28%APYon your entire balance! And yes, it's FDIC insured!

Read ourfull Ponce Bank review here.

Open an account here >>

OPEN AN ACCOUNT

7. OceanFirst Bank - 5.27% APY

OceanFirst Bankis a large New Jersey bank that was founded in 1902 and now has branches in New York, Boston, and more. They offer a full range of consumer banking and lending products, as well as commercial banking as well. In partnership with Raisin, you can open a high-yield savings account at OceanFirst Bank online.

This account has just a $1 minimum deposit to open and no monthly maintenance fees.

Right now, you can earn5.27%APY on your deposits. And yes, it's FDIC insured!

OPEN AN ACCOUNT

8. CloudBank 24/7 - 5.26% APY

Cloudbank 24/7 is a digital bank offered by Third Coast Bank SBB. They are FDIC insured, and place a huge focus on cyber security. This account is offered in partnership with Raisin, so you can open a digital savings account.

This account has just a $1 minimum deposit to open and no monthly maintenance fees.

Right now, you can earn 5.26%APY on your deposits. And yes, it's FDIC insured!

OPEN AN ACCOUNT

9. UFB Direct - 5.25% APY

UFB Direct has recently come out with the current market leader for high yield savings. The only drawback to this account is that it is tiered - however, right now all of the tiers are the same. Just keep in mind that this could change in the future.

Their savings account has no minimum deposit or balance required and $0 monthly maintenance fees.

Right now, they offer one of the highest rates at5.25%APY! And, of course, it's FDIC Insured.

Read thefull UFB Direct review here.

Open a UFB Direct Account here >>

OPEN AN ACCOUNT

10. Harborstone Credit Union - 5.25%APY

Harborstone CU Money Market Accountis a solid option at a Washington state-based credit union (but it's open to depositors nationwide)! If you're looking to a solid credit union to park your savings, check this one out.

You can currently get 5.25%APYwith just a $1 minimum opening deposit.

Open an account here >>

OPEN AN ACCOUNT

11. SkyOne Federal Credit Union - 5.24% APY

Founded in 1949 with the intention of serving Civil Aeronautics Administration employees,SkyOne Federal Credit Union has provided financial services to its members. As of writing, the credit union has over 40,000 members and holds over 600 million in assets.

You can currently get5.24%APYwith just a $1 minimum opening deposit.

Read our fullSkyOne Federal Credit Union review here.

Open an account here >>

OPEN AN ACCOUNT

12. Patriot Bank - 5.22% APY

Patriot Bankhas been around almost 30 years, with physical branches located throughout New York and Connecticut.

In partnership with Raisin, they're offering this great money market account that just requires a $1 minimum deposit to open.

Right now, you can earn5.22%APYon your entire balance! And yes, it's FDIC insured!

Read ourfull Patriot Bank review here.

Open an account here >>

OPEN AN ACCOUNT

13. CIT Bank - 5.05% APY

TheCIT Bank Platinum Savingsis one of our top accounts because they consistently have one of the highest interest rates offered to consumers. Also, their platform in incredibly easy to use, with the ability to sign up and get started in minutes.

CIT Platinum Savings a two-tiered savings account. Right now you can earn up to5.05%APYwith a $5,000 minimum balance. Otherwise you'll earn0.25%APY. See website for full details.

There is a $100 minimum deposit required to open an account. Read ourfull CIT Bank review here.

Open an account here >>

OPEN AN ACCOUNT

Other 5% Interest Accounts (CDs and Checking)

There are some other accounts that are offering 5% interest, but all of these have "catches". Some of these are Certificates of Deposit (CDs). These are term deposits, that mean that you have to keep your money in the account or you could face a penalty.

The other popular option here is high-interest checking, which are special checking accounts that pay promotion high rates IF you meet certain terms and conditions (like a certain balance or transaction amount).

Finally, there are "pay to earn" options, where you can get a higher rate if you sign up for a promotional or Gold level-type account. We don't list those here because they're not great options!

Crescent Bank 12 Month CD - 4.70%APY

Crescent Bankis a New Orleans based bank that offers both local and nationwide banking options. They currently offer some of the most competitive online certificates of deposit available. And they regularly run CD promos with exciting rates.

Right now you can get 4.70%APY on a 12-month CD option! There is a $1,000 minimum to open a CD.

Read ourfull Crescent Bank review here.

Check out Crescent Bank CDs here >>

OPEN AN ACCOUNT

Consumers Credit Union Rewards Checking - Up to 5%

Consumers Credit Unionis our top pick because of their awesome Rewards Checking Account that offers an amazing interest rate on your checking account. It also puts them on ourlist of the best credit unions!

Right now, you can earn up to 5.00% APYon your checking account for the first $10,000. The account also has no fees, no minimum balances, and reimburses your ATM fees.

However, you do have to meet some criteria:

Earn 3.00% APY

• Receive eDocuments.
• Complete at least 12 debit card purchases totaling $100 or more each month. Debit card transactions can be made with or without using your personal identification number (PIN).
• Direct deposits or ACH credits totaling $500 or more must post to your account monthly.

Earn 4.00% APY

Meet the 3.00% requirements plus:

• Spend $500 or more in CCU Visa credit card purchase transactions each month; no minimum number of transactions.

Earn 5.00% APY

Meet the 4.00% requirements plus:

• Spend $1,000 or more in CCU Visa credit card purchase transactions each month; no minimum number of transactions.
• There’s no minimum balance to open a free checking account. CCU has over 30,000 ATMs and you’ll receive unlimited reimbursem*nts for any ATM fees. There’s also no limit on the number of checks you can write.

If you don’t meet the above requirements for a tier, your checking will still be free, but your APY will drop to 0.01%. You also don’t receive ATM refunds.

Read ourfull Consumers Credit Union review here.

Learn more about Consumers Credit Union Rewards Checking here >>

OPEN AN ACCOUNT

What To Know About Choosing These 5% Interest Accounts?

The biggest factor when choosing a savings account is simply the interest rate. The higher the annual percentage yield (APY), the better.

For example, if you have $10,000 to save, a 1% interest rate only will earn you $100 per year. But a 5% rate will 5x that to $500 per year. That's a big difference!

Here are some other key factors to consider:

Monthly Fees

You want to make sure that you're avoiding accounts with monthly fees. Fees eat into your return - the higher the fees, the less you earn overall. Most savings accounts don't charge monthly fees.

Is Your Money Safe And Insured?

You want to make sure that your bank is FDIC Insured, and your credit union is NCUA insured. These government safety nets provide up to $250,000 per individual, or $500,000 jointly in insurance. That means that you can't lose money if you're under those limits - even if your bank fails.

Minimum Balance Requirements

You also want to understand the minimum balance requirements - both to open an account and earn interest. Many accounts on our list simply have a $1 requirement. However, others (notably CDs) have $1,000 minimum or higher.

Sometimes, banks will allow you to open an account for $0, but you won't earn any interest until you reach another level - like $10,000. Always make sure you check.

Minimum Transaction Requirements

This applies specifically to high-interest checking, but make sure you understand if any transactions are required to earn the highest interest rate.

Why Should You Trust Us?

The College Investor has been actively tracking the best savings rates since 2018, with a daily updated list that monitors roughly 50 banks and credit unions that have a history of great rates. But we also are always scouting out other banks that may compete on this list.

Unlike other well-known companies who create "best rate lists", we strive to put out rates in order highest to lowest so that you can know you're actually getting the best rate. And if you don't make the cut, too bad. You can find the full list of our bank review here.

Who Is This For?

If you're shopping for a new bank account for your savings, this list is for you. We curate the highest yielding accounts so that you can ensure you're earning the most interest possible.

We put this list together because we saw too many comments on social media about how there are "no accounts over 5%", when that's simply not true. People just struggled to find them, and some of the biggest companies don't post the best rates on their lists - they only show sponsored ads. As a result, consumers were not getting the best rates possible.

Final Thoughts

Five percent interest rate accounts are out there, and they're becoming more and more common as the Fed Funds Rate rises. It may seem too good to be true, but it's legit.

It's also important to remember that this has happened before. In the 1980s, savings account rates reached 10%. So that could happen again as the government tries to combat inflation.

Always be shopping around for the highest rate savings account. That's how you'll earn the most interest on your money.