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- Two credit unions pay over 7% APY on accounts right now: Landmark Credit Union and OnPath Rewards High-Yield Checking. However, these are both checking accounts with limitations on eligible balances.
- Plenty of high-yield savings accounts pay over 5% APY on your total balance without making you jump through hoops.
- Seethe best saving account rates»
Banks have been increasing their savings rates for well over a year now. The average interest rate on a savings account is 0.43% APY (Annual Percentage Yield), but many institutions are paying significantly higher rates — and two are even paying over 7% interest.
Is a 7% savings account worth it? Learn more about how a 7% interest rate savings account works, and whether you should bother opening an account with such a high rate.
Which bank gives 7% interest on a savings account?
There are not any banks offering 7% interest on a savings account right now. However, two financial institutions are paying at least 7% APY on checking accounts: Landmark Credit Union Premium Checking Account, and OnPath Rewards High-Yield Checking.
OnPath Credit Union High Yield Checking
OnPath Credit Union is offering up to 7.00% * APY on its OnPath Rewards High-Yield Checking Account. You'll earn the up to 7.00% * APY on balances up to $10,000 (balances above $10,000 will earn 0.50%).
You'll need to meet a few qualifications to be eligible. For one, you must log into your OnPath online or mobile banking account one or more times per statement cycle. You also need to enroll in e-statements and receive them for the eligible statement cycles. Finally, you must make 15 or more debit card purchases that post and settle during the statement cycle.
There's a minimum of $25 required to open a checking account.
To join OnPath Credit Union, you must live, work, worship, volunteer, or go to school in an eligible field of membership community in Louisiana; be an immediate relative of someone who is eligible to become a remember; work for or have retired from a company that partners with OnPath Rewards High-Yield Checking; or donate $5 to the OnPath Foundation.
Landmark Credit Union Premium Checking
Landmark pays 7.50% on its Premium Checking Account — however, there are some major caveats to consider.
First, keep in mind that this is a checking account, not a savings account. Second, you have to enroll in e-statements and receive $250 in direct deposits each month to qualify for the 7.50% interest rate.
Finally, you'll only earn 7.50% on balances up to $500. As Landmark compounds interest monthly, this means you'll only earn a little under $40 on $500 in an entire year. Balances over $500 may earn 0.06% to 7.50% APY.
Overall, the 7.50% APY account with Landmark Credit Union probably isn't worth opening. You'll earn more with an account that pays a slightly lower rate, but on higher balances — maybe even on your entire account balance.
What does a 7% interest rate on a savings account mean?
When an account pays 7% APY, you'll earn 7% on your balance over a year. Most banks compound interest, which means they pay interest both on the amount you've deposited and the interest you've earned on top of it.
Banks can compound interest daily, monthly, quarterly, or annually — and the more often it compounds interest, the more you'll earn in the long run. It's common for banks to compound interest daily and pay it into your account monthly.
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.
Alternative high-yield savings account options
Although no savings accounts pay 7% right now, there are plenty that pay high rates on your entire balance. The following accounts are great alternatives to Landmark's checking account, and they don't make you meet requirements every month to earn their high rates.
- Customers Bank High Yield Savings Account: 5.32% APY
- UFB Secure Savings: 5.25% (as of 11/16/23) APY
- Valley Direct High Yield Savings Account: 5.25% APY
What to look for in a high-interest savings account
Selecting a high-yield savings account is an important decision. Here are factors to consider when making your choice:
- Interest rate: Look at the account's interest rate and how often the bank compounds interest. Find out whether you have to meet criteria to earn the highest rate each month, and if you earn interest on your total balance.
- Fees: Monthly service fees can easily cancel out any interest you earn on your savings account. The best online banks don't charge monthly fees.
- Minimum opening deposit: Some banks don't require any money to open a savings account, while others require thousands. Regardless of the amount, make sure you can afford the opening deposit.
7% APY savings accounts: FAQs
Can you get 7% interest on a savings account?
No, there is not a savings account that pays 7% APY right now. The Landmark Credit Union Premium Checking Account pays 7.50% APY, but only on balances up to $500. If you keep more than $500 in your account, you're better off opening a high-yield savings account that pays a slightly lower rate on your total balance.
Do CDs pay 7% APY?
Yes, some CDs pay 7% APY. The top CD rates change frequently and sometimes may pay 7% APY. We check rates daily to find the best CD rates for a variety of terms.
What savings account has the highest interest rate?
Betterment Cash Reserve Account currently pays the highest interest rate, which is 4.75% APY (new customers will earn 5.50% APY for three months) APY for new customers through the end of 2023.
Do I have to declare interest earned on my savings account when I pay taxes?
Yes, you must declare interest earned in any bank account when you file taxes.
Where can I get 10% interest on my money?
You won't earn 10% interest in any bank account. You might be able to earn 10% by investing in assets such as stocks or real estate, but the markets are unpredictable and there's no guarantee.
Products in this post: BrioDirect High-Yield Savings Account, Customers Bank High Yield Savings Account,UFB Secure Savings, Upgrade Premier Savings, CIT Bank Platinum Savings, Wealthfront Cash Account
Personal Finance Reviews Editor
Laura Grace Tarpley (she/her) is a senior editor at Personal Finance Insider. She oversees coverage about mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She was a writer and editor for Business Insider's "The Road to Home" series, which won a Silver award from the National Associate of Real Estate Editors. She is also a Certified Educator in Personal Finance (CEPF).She has written about personal finance for over seven years. Before joining the Business Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at [email protected].Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services »
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As an enthusiast and expert in personal finance, particularly in the realm of banking and high-yield accounts, my extensive knowledge allows me to dissect and elucidate the nuances of the article provided. The piece revolves around the assessment of banking products, specifically focusing on credit unions offering over 7% APY on checking accounts, with a critical evaluation of the potential benefits and limitations.
The article starts by highlighting Landmark Credit Union and OnPath Rewards High-Yield Checking as two credit unions paying over 7% APY. It then distinguishes these checking accounts from high-yield savings accounts, emphasizing the latter's ability to offer over 5% APY without stringent requirements.
Moving on to the specific offerings, OnPath Credit Union's High-Yield Checking offers up to 7.00% APY on balances up to $10,000, with certain qualifications, including online banking activity, e-statement enrollment, and debit card usage. Landmark Credit Union's Premium Checking boasts a 7.50% interest rate but places restrictions on balances, requiring e-statement enrollment and monthly direct deposits.
The article provides valuable insights into the pros and cons of these high-interest checking accounts, suggesting that while Landmark's 7.50% APY may seem attractive, the limitations make it less favorable compared to accounts with slightly lower rates but no balance restrictions.
The subsequent section delves into the mechanics of a 7% interest rate on a savings account, explaining that the interest is earned annually and discussing the nuances of how banks compound interest. It also cautions readers about understanding the bank's rules before opting for a high-interest savings account.
To further assist readers in their decision-making process, the article presents alternative high-yield savings account options, such as Customers Bank High Yield Savings Account, UFB Secure Savings, and Valley Direct High Yield Savings Account, with their respective APYs.
The article concludes with a set of frequently asked questions, addressing topics such as the availability of 7% APY savings accounts, interest rates on CDs, the highest-interest savings account (Betterment Cash Reserve Account), tax implications of interest earned, and the feasibility of getting 10% interest on money.
In summary, this comprehensive article provides readers with a thorough understanding of high-interest banking products, offering both specific recommendations and general advice on choosing the right account based on interest rates, fees, and account requirements.
