Best 7% High-Yield Savings Accounts for April 2024
Ad Disclosure: This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. You help support CreditDonkey by using our links.
Do savings accounts with 7% interest actually exist? Read on to find out.
 |
Are There Savings Accounts with 7% Interest?
Most banks today do not offer 7% APY on savings accounts. But there are still many good options that can boost your savings with attractive returns on your deposits.
High Yield Checking - Up to 7% APY
- Earn 7% APY on average daily balances up to $10,000 and .50% on balances above $10,000.
- No minimum balance required but does require a minimum funded amount of $25.
- No monthly account fee
- Western Alliance Bank:
High-Yield Savings Premier - 5.36% APY - CIT Bank Platinum Savings:
5.05% APY - UFB Secure Savings:
Earn up to 5.25% APY - CloudBank 24/7:
High Yield Savings Account - 5.24% APY - Customers Bank:
High-Yield Savings Account - 5.11% APY - Nelnet Bank:
High-Yield Savings Account - 5.22% APY - RBMAX:
High-Yield Savings Account - 5.15% APY - Mission Valley Bank:
High Yield Savings Account - 5.12% APY - Upgrade:
Premier Savings - Up to 5.21% APY - FVCbank:
High-Yield Savings Account - 5.26% APY - DR Bank:
High-Yield Savings Account - 5.23% APY
High Yield Checking - Up to 7% APY
- Earn 7% APY on average daily balances up to $10,000 and .50% on balances above $10,000.
- No minimum balance required but does require a minimum funded amount of $25.
- No monthly account fee
High-Yield Savings Premier - 5.36% APY
- No account activity or maintenance fees
- $500 minimum opening deposit
- FDIC insured
High-Yield Savings Account - 5.26% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- FDIC insured
How Much Do You Earn With A 7% Savings Account?
$10,000 in a 7% APY savings account will earn $700 a year. Use this calculator to see how much your money can grow:
Here's a table of how much you would have with 7% interest and different monthly contributions.
| Monthly Contribution | 1 year | 3 years | 5 years |
|---|---|---|---|
| $1,000 Initial Deposit | |||
| $0 | $1,070 | $1,225 | $1,403 |
| $100 | $2,270 | $5,083 | $8,303 |
| $300 | $4,670 | $12,799 | $22,105 |
| $500 | $7,070 | $20,514 | $35,907 |
| $1,000 | $13,070 | $39,804 | $70,411 |
| $5,000 Initial Deposit | |||
| $0 | $5,350 | $6,125 | $7,013 |
| $100 | $6,550 | $9,983 | $13,914 |
| $300 | $8,950 | $17,699 | $27,715 |
| $500 | $11,350 | $25,415 | $41,517 |
| $1,000 | $17,350 | $44,704 | $76,022 |
| $10,000 Initial Deposit | |||
| $0 | $10,700 | $12,250 | $14,026 |
| $100 | $11,900 | $16,108 | $20,926 |
| $300 | $14,300 | $23,824 | $34,728 |
| $500 | $16,700 | $31,540 | $48,530 |
| $1,000 | $22,700 | $50,829 | $83,034 |
| $20,000 Initial Deposit | |||
| $0 | $21,400 | $24,501 | $28,051 |
| $100 | $22,600 | $28,359 | $34,952 |
| $300 | $25,000 | $36,075 | $48,754 |
| $500 | $27,400 | $43,790 | $62,556 |
| $1,000 | $33,400 | $63,080 | $97,060 |
Can You Lose Money In A 7% Savings Account
The risk of losing money with any high-yield savings account is very low. As long as the bank or credit union is covered by the FDIC or NCUA, your money is safe.
This is because the federal government insures your deposits up to $250,000 per depositor, per ownership category at each financial institution.
That said, you can lose money if you fail to meet minimum balance requirements. In that case, you may be charged a monthly fee.
Pros and Cons of A 7% APY Savings Account
Here are the pros and cons of a 7% interest rate savings account:
Pros
- Grow your money faster
- Your money is easily accessible
- Savings are FDIC-insured up to $250,000
Cons
- APY can change at anytime
- Limited availability
- Potential fees and restrictions
- Potential deposit/balance requirements
How To Choose A 7% Interest Savings Account?
There are numerous high yield savings accounts being offered today. Here are some things to consider to find the best one for you:
Good APY
Opening an account that allows you to earn a good APY is the most crucial factor you need to consider. Check out different banks and credit unions to find the best option for you.
However, don't just look at the highest rates offered because some may have restrictions that are not worth it.
Fees
Some banks may have monthly fees if you don't maintain a certain balance. If so, make sure it makes sense for you.
Account Requirements
Some banks only give you the highest APY if you keep a certain balance (or conversely, only up to a certain amount). There could be other requirements to get the high rate too. These conditions could be restrictive.
Is a 7% Savings Account Worth It?
7% interest savings accounts are hard to find. And if there is one, they often have requirements and limitations that may not be worth the trouble.
Therefore, you are better off putting your money in an account with a slightly lower APY but with minimal fees and restrictions.
- Western Alliance Bank:
High-Yield Savings Premier - 5.36% APY - CIT Bank Platinum Savings:
5.05% APY - UFB Secure Savings:
Earn up to 5.25% APY - Discover Bank:
Online Savings Account - Earn 4.25% APY - CloudBank 24/7:
High Yield Savings Account - 5.24% APY - Customers Bank:
High-Yield Savings Account - 5.11% APY - Nelnet Bank:
High-Yield Savings Account - 5.22% APY - RBMAX:
High-Yield Savings Account - 5.15% APY - Mission Valley Bank:
High Yield Savings Account - 5.12% APY - Quontic:
High Yield Savings - 4.50% APY - Adda Bank:
High Yield Savings Account - 4.90% APY
Alternatives To 7% Savings Accounts
Since savings accounts with 7% interest are rare, here are some alternatives you can check out.
High Yield Checking - Up to 7% APY
- Earn 7% APY on average daily balances up to $10,000 and .50% on balances above $10,000.
- No minimum balance required but does require a minimum funded amount of $25.
- No monthly account fee
Certificate of Deposit
If you prefer earning a fixed rate, getting a CD account may be the better option for you. Your rate will stay the same even if market conditions change.
Just remember that your money will be locked up for a specific period and you can only withdraw it upon maturity.
- CIT Bank No Penalty CD:
3.50% APY - Quontic:
CD Rates - Up to 5.05% APY - Discover Bank:
1 Year CD - 4.70% APY - Western Alliance Bank:
5-Month High-Yield CD - 5.30% APY - Consumers Credit Union:
13-Month Super Jumbo CD - 5.25% APY - Ponce Bank:
4-Month No Penalty CD - 5.15% APY - SkyOne Federal Credit Union:
5-Month High-Yield CD - 5.00% APY - American First Credit Union:
12-Month High-Yield CD - 4.90% APY - Idabel National Bank:
9-Month High-Yield CD - 4.80% APY - Blue Federal Credit Union:
15-Month High-Yield CD - 4.70% APY - mph.bank:
10-Month High-Yield CD - 3.00% APY
Bonds
If you want to go beyond banking products, you can check out bonds for another (relatively) low-risk way to earn more money.
You can get good rates, regular interest payments, and decent liquidity when you invest in bonds.
Stocks, Forex, & Cryptocurrencies
If you don't mind the extra risk for higher rewards, trading stocks and currencies is a popular option. However, returns are not guaranteed and you could lose money too.
Bottom Line
A 7% interest savings account may seem appealing in hindsight but the conditions of opening one are often not worth it.
Even though the rates offered by most banks today are lower, you are more likely to grow your funds with them.
High Yield Checking - Up to 7% APY
- Earn 7% APY on average daily balances up to $10,000 and .50% on balances above $10,000.
- No minimum balance required but does require a minimum funded amount of $25.
- No monthly account fee
Keep in mind that savings account rates are variable so things will be different years, months, and even weeks from now. You can keep yourself in the loop by keeping an eye out on our page for the latest rates!
Darlene Santos is a research analyst at CreditDonkey, a bank comparison and reviews website. Write to Darlene Santos at darlene.santos@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.
|
|
| ||||||
|
|
|
