5% Interest Savings Account Rates: April 2024 (2024)

Savings accounts are a convenient way to store your cash, and with the right annual percentage yield (APY), can also be a great way to grow it. According to the FDIC, the national average savings account rate is just 0.46%, which won’t earn you much interest. But plenty of higher APYs are out there—including several savings accounts with 5% interest.

A 5% interest savings account is on par with other types of investments like certificates of deposit (CDs) or money market accounts but without the limitations. With a savings account, you can make withdrawals and deposits and pay bills, which is something not all other accounts permit. You’ll see noticeable gains in your account balance, especially if you continue making regular deposits. We’ve curated a list of the best 5% APY savings accounts to help you choose the one that’s right for you.

Who Should Get a 5% Interest Savings Account?

A 5% interest savings account is a great choice for most people. It’s an excellent way to get the most from spare cash you want to keep on hand for emergencies or when saving up for something specific, like a vacation or new car. Rather than letting this cash sit without earning anything, you can get a pretty decent return and reach your goals faster.

While there are better investment options with higher returns, savings accounts with 5% interest are a safe and reliable option for the casual consumer. You can withdraw and deposit new funds as required, which could come in handy if rates with your current bank drop and you want to find a new account to move your money to.

Ideally, you shouldn’t use a 5% interest savings account as your sole long-term investment. Instead, make sure you’re investing as much as possible in a tax-advantaged individual retirement account. You should also consider investing in mutual funds and exchange-traded funds, which give you exposure to a diverse range of investment options, including stock, bonds and real estate.

Best Savings Account With 5% APY of 2024

Best Overall

TAB Bank High Yield Savings

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APY

5.27%

Min. Balance

$0

Monthly Maintenance Fee

$0

Why We Chose It

The TAB Bank High Yield Savings account doesn’t require a minimum balance and doesn’t charge monthly service fees. It also doesn’t have a cap on how much money can earn the generous APY.

Pros

• No minimum deposit
• No balance caps
• No monthly service fees

Cons

• $30 returned item fee
• No interest if you close account before it’s deposited
• Limited to six withdrawals per month

Best for High-Value Insurance

UFB Direct Secure Savings

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Vault Verified

APY

5.25%

Min. Balance

$0

See Also

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Monthly Maintenance Fee

$0

Why We Chose It

The UFB Direct Secure Savings account offers the standard $250,000 FDIC insurance, but it also gives you the option to access expanded protection through IntraFi® Network Deposits℠. With this program, you can expand your FDIC insurance coverage up to $200 million.

Pros

• Up to $200 million in FDIC insurance
• No monthly maintenance fees
• No minimum deposit

Cons

• Higher balance tiers don’t offer higher APYs
• Multi-million FDIC insurance is complicated
• Standard FDIC insurance includes any balances held at Axos Bank

Best for Ease of Opening

Newtek Bank Personal High Yield Savings

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APY

5.25%

Min. Balance

$0

Monthly Maintenance Fee

$0

Why We Chose It

The Newtek Bank Personal High Yield Savings takes just two minutes to open and doesn’t require a minimum deposit, making it one of the fastest ways to get started with your new 5% interest savings account.

Pros

• No monthly maintenance fees
• No minimum deposit
• Takes two minutes to open

Cons

• Limited to six withdrawals per month
• Can only make deposits on mobile app if you have a business account
• Need to have external account to open savings

Best for No Fees

Bread Savings High-Yield Savings Account

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APY

5.15%

Min. Balance

$100

Monthly Maintenance Fee

$0

Why We Chose It

Say goodbye to fees with the Bread Savings High-Yield Savings Account. You won’t have to worry about paying for ACH transfers, online statements, incoming wire transfers or any other account fees. You can also make unlimited deposits with mobile check capture or ACH transfer.

Pros

• Free ACH transfers
• Free online statements
• Mobile check deposit

Cons

• Maximum deposit limit of $1 million per account and $10 million limit per customer
• $5 per paper statement request
• $25 per outgoing wire transfer

Best for Joint Accounts

Bask Interest Savings Account

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APY

5.10%

Min. Balance

$0

Monthly Maintenance Fee

$0

Why We Chose It

The Bask Interest Savings Account makes it easy to open a joint account or convert an existing individual account into a joint one. You can have up to two people on one account as well as five beneficiaries.

Pros

• No overdraft fees
• Can open up to two individual and two joint savings accounts
• Can add joint owners before or after account creation

Cons

• Standard FDIC insurance includes any balances held at Texas Capital Bank
• Limited product offering
• $35 per outgoing wire transfer

Best for No Balance Requirements

BMO Alto Online Savings Account

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APY

5.10%

Min. Balance

$0

Monthly Maintenance Fee

$0

Why We Chose It

You don’t need to maintain a minimum balance with a BMO Alto Online Savings Account, and there are no fees or required opening deposits. Paired with unlimited transfers and withdrawals, this account can be a great way to pay bills while earning a high APY.

Pros

• Unlimited withdrawals and transfers
• No fees
• No minimum balance requirements

Cons

• No branch support
• No cash or check deposits
• No mobile app

Best Mobile App

Upgrade Premier Savings

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APY

5.07%

Min. Balance

$1,000

Monthly Maintenance Fee

$0

Why We Chose It

You can access your Upgrade Premier Savings account on the go thanks to the highly rated Android and Apple apps. Upgrade also offers other banking products like credit cards, checking and loans, making it a good place to do all of your banking.

Pros

• Highly rated app
• Good variety of banking products
• No monthly fees

Cons

• Must have at least $1,000 to earn APY
• Can only fund account via ACH transaction, direct deposit or wire transfer
• Can’t open Premier Savings if you have an existing Rewards Checking account

Best for Unlimited Transactions

CIT Bank Platinum Savings

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APY

5.05%

Min. Balance

$5,000

Monthly Maintenance Fee

$0

Why We Chose It

CIT Bank doesn’t put any monthly limitations on transactions in and out of its CIT Bank Platinum Savings account. There are also no set transaction amount limits, so you can move big balances around without trouble.

Pros

• Mobile check deposit
• No monthly fees
• No set transaction limits

Cons

• $100 minimum opening deposit
• High minimum balance to earn top APY
• No Sunday customer service

Best for Easy Money Access

CIBC Agility™ Online Savings Account

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APY

5.01%

Min. Balance

$0

Monthly Maintenance Fee

$0

Why We Chose It

After you deposit money into your CIBC Agility™ Online Savings Account, you can access it through an external transfer, via check or through an internal transfer. CIBC also has a mobile app so you can make transfers on the go.

Pros

• No monthly fees
• Up to 10 transfers per day
• 30 days to make initial deposit

Cons

• Different customer service than regular CIBC Bank accounts
• $1,000 minimum deposit
• Interest compounds monthly

Best Account Funding Options

Laurel Road High Yield Savings®

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Vault Verified

APY

5%

Min. Balance

$0

Monthly Maintenance Fee

$0

Why We Chose It

The Laurel Road High Yield Savings® account makes it easy to add funds to your balance. You can complete an external transfer, send a domestic wire transfer, set up direct deposit, submit a mobile check or send in a check via mail. There are also no monthly maintenance fees or minimum balances to worry about.

Pros

• No minimum deposit
• No monthly fees
• Numerous ways to fund account

Cons

• Higher balance tiers don’t offer higher APYs
• Limited to seven withdrawals per month
• $20 overdraft fee

What Is APY?

APY stands for annual percentage yield. It’s a percentage that represents your annual return on an investment. It includes the effects of compounding interest. Typically, most savings accounts compound interest daily and pay it out monthly. This interest adds to your balance over time, increasing the money you’re earning interest on. In the case of a 5% APY savings account, it means you’ll earn a total of 5% interest throughout the year.

APY is different than the interest rate. The interest rate is the amount you earn on your money without the effects of compounding and is lower than the APY. For example, the Laurel Road High Yield Savings account has a 5% APY and a 4.88% interest rate.

How to Choose a Savings Account With 5% Interest

Choosing a savings account with 5% interest boils down to a few main factors. You’ll want to closely compare the APY, minimum balance requirements, monthly service fees, customer service, transaction limits and any other fees before making your selection.

APY

Higher APYs can result in better earnings, and even a few tenths of a percentage more can impact what you make. If you invested $10,000 in both a 5% APY and a 5.25% APY account, the 5.25% account would earn $25 more over a year.

Minimum Balance Requirements

Luckily, most of the 5% interest savings accounts we mentioned here don’t have a minimum balance requirement. But some require you to either have a minimum opening deposit or balance to earn a high APY. Carefully review this information to make sure you have enough to fund the account.

Monthly Service Fees

Monthly service fees can cancel out the interest you earn. Since you have so many good options that don’t charge this fee, you can likely find one that meets your needs.

Customer Service

Ideally, you want a bank that offers customer phone support hours at least every day; 24/7 support via live chat is an added bonus, as is online messaging and a resource center. Many banks aren’t open on the weekends, so if you like to do your banking on Sunday mornings, you might want to find an institution with support during that time.

Number of Permitted Withdrawals

The Federal Reserve used to have a regulation limiting you to six withdrawals or transfers from your banking account each month. But that regulation is no longer in place, so some banks allow you to make an unlimited number of withdrawals. This can come in handy if you plan on using your savings account to pay bills.

Other Service Fees

When selecting a 5% interest savings account, make sure to consider other fees, including overdraft fees, wire transfer fees and even statement fees. Check for the bank’s Truth in Savings disclosure—it’s a required document that lists all the interest rates and fees associated with an account.

How to Open a 5% APY Savings Account

Opening a 5% APY savings account will require verifying your identity and providing a fair bit of personal information. Here are the basic steps you can expect when opening a new bank account.

1. Check the bank’s application methods. Many banks let you apply online, but some also offer phone or in-person applications.
2. Get an identifying document handy. The bank will likely ask to see a government-issued ID like your driver’s license and Social Security number.
3. Enter your contact information. The application will ask for your name, address, email address, phone number and age. These are used to verify your identity and make sure the bank can contact you.
4. Select the specific account you want. Some banks offer multiple savings accounts, so make sure you’re choosing the 5% APY savings account.
5. Read and agree to any terms and disclosures. These documents typically include important stipulations about your account that you’ll want to be aware of.
6. Wait for the bank to approve your application. For many banks, this happens immediately. Other banks may need a few days to review your information.
7. Complete your initial deposit. Some accounts require you to make a minimum deposit within a certain number of days, so make sure you link up an external account to get the transfer going.