7% Interest Rate Savings Accounts in [current_month_year] (2024)

Vault’s Viewpoint on 7% Interest Savings Accounts

  • If you can find a savings account with a 7% interest rate, you’ll earn about 15X more than the national savings rate.
  • Currently, there are no savings accounts on the market that offer a 7% APY.
  • It’s much more common to find a savings rate of 4% to 5% right now.

Overview of 7% APY Savings Accounts

Usually, you can find higher rates with credit unions or online banks. Credit unions can afford to offer higher savings rates since they are not-for-profit institutions like banks. Online-only banks do aim to earn a profit, but because they don’t have expensive brick-and-mortar branch locations to run, they can often afford to give very enticing APYs on savings deposits and other products.

Unfortunately—as briefly noted earlier—there aren’t any savings accounts currently offering a 7% interest rate. However, some financial institutions are offering a 7% or greater APY on other products.

OnPath Federal Credit Union customers can currently access a 7% APY on average daily checking account balances up to $10,000. Landmark Premium Credit Union is another credit union offering a high rate on checking deposits. You can earn 7.50% APY on deposits of up to $500.

Pros of a 7% Interest Savings Account

If you can secure a 7% interest savings account, you stand to earn a lot of money for very little effort.

  • High-interest earnings can help savings grow
  • No risk like with investing
  • Most savings accounts are protected by FDIC or NCUA insurance

Cons of a 7% Interest Savings Account

Unfortunately, finding and maintaining a 7% APY simply by opening a savings account is easier said than done. Here are some disadvantages commonly associated with 7% interest savings accounts.

  • Difficult to find
  • No guarantee interest rate will remain that high
  • May need to meet certain minimum balance requirements

How Much Can You Earn With a 7% Interest CD?

One way to find higher earnings rates can be with a certificate of deposit (CD). While a CD is not as flexible as a savings account, it also offers a guaranteed amount of interest on your deposit. In many cases, CD rates are higher than savings account rates.

With a CD, you deposit a certain amount of money for a set amount of time (known as the CD term). You typically can’t remove your funds before the term ends without running into a penalty fee—although there are some exceptions to this rule thanks to no-penalty CDs. In exchange for that rigidity, you earn a set amount of interest. With a savings account, APYs can go up or down whenever the bank chooses, meaning what you earn is unpredictable.

At the moment, there are no 7% CDs available, but you can find many offering high APYs. Let’s say you were to find a 7% CD—how much money would you earn? If you open a CD with a $10,000 deposit and a two-year term, you would earn $1,449 in interest. You wouldn’t be able to access your funds for two years, which may be challenging, but it’s easy to see how a high APY can lead to strong earnings that make that lack of fluidity worthwhile.

How to Open a Savings Account With 7% Interest

Opening a new savings account can sound intimidating, but the process is actually quite straightforward and speedy. If you’re planning to open a new savings account, here are the steps you will generally follow.

  1. Shop around. When choosing a new savings account, spend some time getting to know your options. Investigate the different rates, fees and products a handful of banks and credit unions offer.
  2. Be prepared. All banks have a unique application process, but most require you to provide basic personal and identifying information and documentation. To streamline the application, have a government-issued ID, proof of address and your Social Security number at the ready.
  3. Fill out the application. Next, you will complete the application and wait for approval. Most banks will give you an answer fairly quickly and possibly even immediately or that same day.
  4. Make the initial deposit. After you receive approval, you’ll need to make an initial deposit. Some banks have minimum opening deposit requirements, so confirm you can deposit that amount before opening your account. You may also need to maintain a certain ongoing balance or risk running into fees.

Alternatives to a Savings Account With 7% Interest

If you can’t find a savings account offering the 7% interest rate you’re looking for, other financial products can still help you earn a decent amount of interest.

High-Yield Checking Account

High-yield checking accounts work the same way as a traditional checking account but tend to come with much higher interest rates, getting you closer to earning a 7% APY. Typically, you don’t earn much—if any—interest with traditional checking accounts, so finding a high-yield checking account that works for you can be a real win. You will most commonly find high-yield checking accounts at online-only banks or credit unions.

High-Yield Savings Accounts

Remember: You’re more likely to find the most competitive interest rates with high-yield savings accounts, not traditional ones. If you are comfortable giving up access to in-person banking services, you may be able to find the rates you’re looking for at an online-only bank.

Money Market Accounts

A money market account is a great way to earn interest on savings you want to keep accessible. You can find money market accounts at banks and credit unions, which work like a cross between savings and checking accounts. You’ll get check-writing abilities and debit card access like you would with a checking account, but with the high APY of a savings account.

What Banks Offer the Highest Interest Rates on Savings Accounts?

While rare, a handful of banks offer high-yield savings accounts with a 6% APY or more. Digital Federal Credit Union (DCU) currently has an account yielding 6.17% APY on balances up to $1,000. DCU is based in Massachusetts, but you can join the credit union if you work for one of its participating employers or join one of its associated non-profits.

An online bank, Mango Money, offers a 6% APY on balances up to $5,000 in its savings account. After that, the APY drops to 0.10%. Still, that high interest rate can kick-start your savings while you build up an emergency fund or save for a specific financial goal.

Note that banks’ interest rates fluctuate all the time, and just because these are the highest interest rates right now doesn’t mean they won’t change in the future.

Frequently Asked Questions

How Can I Earn 7% Interest on My Money?

There are a few different ways you can earn a 7% interest rate on your money. It’s possible to earn that much interest with investing, but there are no guarantees. Finding a high-yield savings account, CD or money market account that offers a 7% interest rate can be a more secure way of earning that rate.

Which Bank Gives 7% Interest Rate?

Currently, no banks are offering 7% interest on savings accounts, but some do offer a 7% APY on other products. For example, OnPath Federal Credit Union currently offers a 7% APY on average daily checking account balances up to and under $10,000. Landmark Premium Credit Union is also offering a 7.50% APY on checking deposits up to $500.

Can You Get 7% on a CD?

It can be possible to earn a 7% interest rate on a (CD), but to find that high of an interest rate, you will need to shop around with a few different banks and credit unions. To earn a 7% interest rate, you may need to commit to a large CD amount or a long CD term.

How Risky Are High-Yield Savings Accounts?

Most high-yield savings accounts are protected by FDIC insurance (or NCUA insurance for credit unions) for balances up to $250,000 per person. This means that even in the unlikely event that your financial institution goes under, your savings are protected up to the insured amount. For this reason, it’s important to check that your bank or credit union has this insurance before you open an account.

Do You Pay Taxes on a High-Yield Savings Account?

Yes. Your financial institution will issue you a form 1099-INT to document the interest you’ve received in your savings account. It’s taxed at the same rate as regular income.

Newsweek writer Jennifer Sisson contributed to this post.

More From the Vault: Guide to High-Yield Savings Accounts

1 What Is a High-Yield Savings Account (HYSA)?

2 CDs vs High-Yield Savings Account 2024

3 What Is the Average Interest Rate for Savings Accounts?

4 Best High-Yield Savings Accounts of May 2024: Up to 5.35%

5 7% Interest Rate Savings Accounts in May 2024

6 5% Interest Savings Account Rates: May 2024

7% Interest Rate Savings Accounts in [current_month_year] (2024)

FAQs

7% Interest Rate Savings Accounts in [current_month_year]? ›

As of May 2024, there are no savings accounts offering a 7% interest rate, but you can open a 7% interest checking account at two U.S.-based credit unions. To qualify for these accounts, you'll need to meet some very strict requirements.

Which bank gives 7% interest per month? ›

IDFC FIRST Bank offers interest rate up to 7% on balances more than Rs 10lac to less than Rs 5 crore. The new rates are effective from July 1, 2023.

Where can I get 7% interest on my savings? ›

Existing-customer regular savers – what we'd go for
ProviderRate (AER)
Top existing-member regular savings accounts. Here are the accounts with the top rates.
First Direct7% fixed for one year
Co-operative Bank7% variable for one year
Skipton BS (must have been a member since before 11 Jan 2024)7% fixed for one year
12 more rows
May 21, 2024

Can I earn 7% on my money? ›

A 7% APY savings account may pay interest on all of the money in your account. Or you might earn 7% on just a portion of your balance, or only earn interest if you meet certain requirements. Before opening a savings account for its high interest rate, be sure you understand the bank's rules.

Are interest rates on savings accounts monthly or yearly? ›

With most savings accounts and money market accounts, you'll earn interest every day, but interest is typically paid to the account monthly.

Where can I get 7% interest on my money? ›

7% Interest Savings Accounts: What You Need To Know
  • As of May 2024, no banks are offering 7% interest rates on savings accounts.
  • Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Which bank gives 8% interest? ›

Top 20 Scheduled Banks offering Best FD Rates
BanksHighest FD rate (% p.a.)3-year FD rate (% p.a.)
Fincare Small Finance Bank8.007.50
RBL Bank8.007.50
AU Small Finance Bank8.007.50
IDFC First Bank7.907.25
16 more rows

Where to put $10,000 for best interest? ›

Summary of best rates on £10,000
Best easy accessLeeds Building Society – Shared Ownership Saver (6.25%)
Best cash ISAWest Brom Building Society – WeBuilding Societyave 60 Day Notice ISA (Issue 2) (5.1%)
Best fixed-rate bondNationwide Building Society – Member Exclusive Online Bond (5.5%)
2 more rows
Mar 26, 2024

How much interest will $50000 earn in a savings account? ›

5% APY: With a 5% CD or high-yield savings account, your $50,000 will accumulate $2,500 in interest in one year. 5.25% APY: A 5.25% CD or high-yield savings account will bring you $2,625 in interest within a year.

Where can I make 10% interest on my money? ›

Where can I get 10 percent return on investment?
  • Invest in stocks for the short term. ...
  • Real estate. ...
  • Investing in fine art. ...
  • Starting your own business. ...
  • Investing in wine. ...
  • Peer-to-peer lending. ...
  • Invest in REITs. ...
  • Invest in gold, silver, and other precious metals.

Where can I get 7% returns? ›

Did you know there's a relatively low-risk investment that can earn you a near 7% annualized return right now? With inflation recently at a 40-year high, there's a Treasury bond that pays an inflation-adjusted rate of nearly 7% -- the Series I Savings Bond.

Are there any 7% CDs? ›

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

Is a 7% return realistic? ›

Even the 10% estimate doesn't include inflation, which has averaged about 3% a year, further reducing the historical return closer to 7%. Tack on things like fees and taxes, and even 7% is probably a relatively high long-term return assumption for a portfolio, especially based on market forecasts today.

Is it better to get interest annually or monthly? ›

However, savings accounts that pay interest annually typically offer more competitive interest rates because of the effect of compounded interest. In simple terms, rather than being paid out monthly, annual interest can accumulate over the year, potentially leading to higher returns on the sum you've invested.

Do you pay taxes on savings accounts? ›

How Are Savings Accounts Taxed? The IRS treats interest earned on a savings account as earned income, meaning it can be taxed. So, if you received $125 in interest on a high-yield savings account in 2023, you're required to pay taxes on that interest when you file your federal tax return for the 2023 tax year.

Do high yield savings pay monthly? ›

A high-yield savings account has a higher annual percentage yield, or APY, than a traditional savings product. Your APY is the amount of interest your account accrues in a year. The interest in some HYSAs compounds daily, with others it's monthly.

Who pays 7% interest? ›

The only financial institution account currently advertising interest payments above 7% is available from Landmark Credit Union, a credit union with more than 30 locations in Wisconsin that also offers its services online. The credit union's Premium Checking account lists potential interest earnings up to 7.50% APY.

What bank has the highest monthly interest rate? ›

Best High-Yield Online Savings Accounts of May 2024
  • EverBank Performance℠ Savings: 5.15% APY.
  • Bask Interest Savings Account: 5.10% APY.
  • LendingClub High-Yield Savings Account: 5.00% APY.
  • Varo Savings Account: 3.00% to 5.00% APY.
  • Laurel Road High Yield Savings®: 5.15% APY.
  • Quontic Bank High Yield Savings: 4.50% APY.

Which first direct account gives 7% interest? ›

You can apply for a Regular Saver via our App or Online Banking, and we'll get you set up within a few hours to 3 days. This account is only available to first direct 1st Account customers. Find out more about our 1st Account. Our Regular Saver gives you a 7.00% AER/Gross p.a.

Do any banks pay interest monthly? ›

Lots of different types of savings accounts pay interest monthly; including Fixed Rate Bonds, Easy Access, Notice and Cash ISAs. As well as this, other accounts may also pay monthly interest so it is important to check in the account details to see when interest will be paid.

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