Best 5% High-Yield Savings Accounts for April 2024
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Climb the savings ladder fast with top 5% interest savings accounts.
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- Western Alliance Bank:
High-Yield Savings Premier - 5.36% APY - FVCbank:
High-Yield Savings Account - 5.26% APY - UFB Secure Money Market:
Earn up to 5.25% APY - Harborstone Credit Union:
Money Market Deposit Account - 5.25% APY - CloudBank 24/7:
High Yield Savings Account - 5.24% APY - Ponce Bank:
Money Market Deposit Account - 5.24% APY - American First Credit Union:
Money Market Deposit Account - 5.24% APY - DR Bank:
High-Yield Savings Account - 5.23% APY - OptimumBank:
Money Market Deposit Account - 5.23% APY - UNCLE Credit Union:
Money Market Deposit Account - 5.23% APY - Nelnet Bank:
High-Yield Savings Account - 5.22% APY - Dayspring Bank:
Money Market Deposit Account - 5.21% APY - Upgrade:
Premier Savings - Up to 5.21% APY - SkyOne Federal Credit Union:
Money Market Deposit Account - 5.20% APY - Generations Bank:
Money Market Deposit Account - 5.18% APY - Blue Federal Credit Union:
Money Market Deposit Account - 5.15% APY - RBMAX:
High-Yield Savings Account - 5.15% APY - Mission Valley Bank:
High Yield Savings Account - 5.12% APY - Customers Bank:
High-Yield Savings Account - 5.11% APY - CFBank National Association:
High-Yield Savings Account - 5.07% APY - CIT Bank Platinum Savings:
5.05% APY - Lemmata Savings Bank:
Money Market Deposit Account - 5.03% APY - Greenwood Credit Union:
High-Yield Savings Account - 5.00% APY - Quontic:
Money Market Account - 5.00% APY
Best High-Yield Savings Accounts with 5% Interest
High-Yield Savings Premier - 5.36% APY
- No account activity or maintenance fees
- $500 minimum opening deposit
- FDIC insured
CIT Bank Platinum Savings - 5.05% APY
- 5.05% APY with a balance of $5,000 or more
- 0.25% APY with a balance of less than $5,000
- $100 minimum opening deposit
- No monthly maintenance fee
- Member FDIC
UFB Secure Savings - Earn up to 5.25% APY
- Earn up to 5.25% APY*
- No monthly maintenance fees
- No minimum deposit required to open an account
- Access your funds 24/7 with easy-to-use digital banking tools
High Yield Savings Account - 5.24% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- Deposits are FDIC insured through Third Coast Bank SSB
High-Yield Savings Account - 5.11% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- FDIC insured
High-Yield Savings Account - 5.22% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- FDIC insured
High-Yield Savings Account - 5.15% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- FDIC insured
High Yield Savings Account - 5.12% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- FDIC insured
Premier Savings - Up to 5.21% APY
- 5.21% APY when you have at least $1,000 balance.
- No minimum opening deposit
- No monthly account fees
High-Yield Savings Account - 5.26% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- FDIC insured
Credit unions are run by their members so they're less focused on profit, and more focused on customer satisfaction.
How much do you earn with a 5% savings account?
A 5% APY savings account can quickly grow your money, especially with compounding interest. Use this calculator to see just how much you will earn.
Here's a table of how much you would have with 5% interest and different monthly contributions.
| Monthly contribution | 1 year | 3 years | 5 years |
|---|---|---|---|
| $1,000 Initial Deposit | |||
| $0 | $1,051 | $1,161 | $1,284 |
| $100 | $2,282 | $5,046 | $8,100 |
| $300 | $4,743 | $12,813 | $21,732 |
| $500 | $7,203 | $20,580 | $35,364 |
| $1,000 | $13,355 | $39,999 | $69,445 |
| $5,000 Initial Deposit | |||
| $0 | $5,256 | $5,809 | $6,420 |
| $100 | $6,487 | $9,693 | $13,236 |
| $300 | $8,948 | $17,460 | $26,868 |
| $500 | $11,408 | $25,228 | $40,500 |
| $1,000 | $17,561 | $44,646 | $74,581 |
| $10,000 Initial Deposit | |||
| $0 | $10,513 | $11,618 | $12,840 |
| $100 | $11,743 | $15,502 | $19,656 |
| $300 | $14,204 | $23,269 | $33,288 |
| $500 | $16,665 | $31,037 | $46,920 |
| $1,000 | $22,816 | $50,456 | $81,001 |
| $20,000 Initial Deposit | |||
| $0 | $21,025 | $23,236 | $25,680 |
| $100 | $22,256 | $27,120 | $32,496 |
| $300 | $24,717 | $34,888 | $46,128 |
| $500 | $27,177 | $42,655 | $59,760 |
| $1,000 | $33,330 | $62,074 | $93,841 |
Can you lose money in a 5% savings account?
You cannot lose money in a 5% savings account as long as the bank is insured by FDIC (or NCUA for credit unions). With FDIC insurance, your money is protected by the federal government up to $250,000 per depositor, even if the bank closes.
But if you have more than $250,000, anything over that amount is not guaranteed. So if you have a lot to save, it's best to split them into different savings accounts.
Another instance where you can lose money is by failing to meet any minimum balance requirements. In that case, you may have to pay a monthly fee.
Pros and Cons of a 5% APY savings account
Here are the pros and cons of a 5% interest rate savings account:
Pros:
- Earn more in the short-term
- Risk-free investment
- Funds are liquid - you can access them at any time
- Quick and easy to open
- Savings are FDIC insured up to $250,000
Cons:
- APY is subject to change at any time
- Usually offered by online-only banks
- Usually limited to 6 withdrawals per month
- Some accounts may have requirements to earn the highest APY (or there's a cap)
How to Open A 5% Interest Rate Savings Account
Banks let you open an account in different ways. Here's how the online process typically goes:
- Visit your chosen bank's website and select your preferred savings product.
- Fill out the application with your legal name, birth date, SSN, and contact details.
- Submit your application and fund your account.
- Be 18 years or older
- A US residential address
- A valid government ID
- A Social Security or Tax Identification number
- An initial deposit (if required)
How to Maximize 5% Interest Rate Savings Account
Here are things you can do to maximize your high-yield savings account:
- Look for the best rates.
Before you pick an account, check different offers to find the best rate. Look for one with an APY that applies to all balances. -
Find an account with no monthly fees.
Monthly charges can easily eat into your earnings. So, choose an account with no fees or one you can waive. - Satisfy APY requirements.
You may need to meet a specific balance or set up direct deposits to get the highest rate offered. Make sure to satisfy these requirements to maximize your account. - Make use of automated savings tools.
Many high-yield savings accounts are often from online banks with digital banking tools. You can use features like automatic transfers and savings goals to make your money work harder for you.
Alternatives to 5% savings accounts
There are other types of accounts offering 5% APY that may fit your needs more. Here are some alternatives:
Certificate of Deposit:
A CD gives you a fixed interest rate for a fixed term. Typically, longer terms will have higher APYs. CDs are a better option if you're saving for long-term goals and want to lock in a guaranteed high APY.
The catch is that you must deposit a fixed amount of money, and you can't add to it. You also can't withdraw early or else there will be penalties.
Certificate of Deposit
- 4.70% APY for 12-month term
- 4.40% APY for 18-month term
- 3.75% APY for 36-month term
- 3.75% APY for 5-year term
CIT Bank No Penalty CD - 3.50% APY
- 3.50% APY
- Option to withdraw full balance and interest after 7 days of CD funding date
- $1,000 minimum to open an account
- 11 months
- No monthly maintenance fee
- Member FDIC
CD Rates - Up to 5.05% APY
- $500 minimum opening deposit
- FDIC insured
| Term | CD Rates |
|---|---|
| 6 Month | 5.05% APY |
| 12 Month | 4.50% APY |
| 24 Month | 4.50% APY |
| 36 Month | 4.40% APY |
| 60 Month | 4.30% APY |
Alliant Credit Union CD Rates
- Low minimum deposit of only $1,000; no maximum
- Jumbo certificates may be available for a higher rate if you deposit $75,000 or more
- Funds are insured up to $250,000 by NCUA
| Term | APY |
|---|---|
| 3-month | 4.25% |
| 6-month | 5.00% |
| 12-month | 5.15% |
| 18-month | 4.90% |
| 24-month | 4.30% |
| 36-month | 4.20% |
| 48-month | 4.05% |
| 60-month | 4.00% |
Bonds:
This is a type of low-risk investment. It's basically a loan to the government or a company, and you get regular interest payments. When your bond matures, you get back the money you initially invested.
For an easy way to invest in bonds, check out Worthy Bonds. It offers 5%+ fixed interest with no fees, and you can withdraw at any time without penalty.
Is a 5% Savings Account Right for Me?
A high-yield savings account is good for emergency funds and short-term goals (like vacation, wedding, or house down payment). Your money is not locked in, so you can access it when you need it. And there's no risk of losing money.
You'll want to look at the requirements of each account. Some accounts give you the APY on the entire balance, while others have requirements or a cap. So if you want to save big, look for an account that fits how much you plan to put in.
Also, weigh the opportunity cost. Consider what else you can do with the funds. If you don't need access and can afford some risk, there could be alternative investments that could provide a better return.
What the Experts Say
CreditDonkey asked a panel of industry experts to answer readers' most pressing questions. Here's what they said:
Bottom Line
A 5% savings account is a great option if you're looking for a place to park your money. It will boost your savings quickly with practically no risk.
Just be careful that some accounts may have requirements to earn the 5%. So make sure you can comply with them, and you should be growing your money in no time!
Write to Katarina Rodriguez at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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