What Banks Have 7% Interest on Savings Accounts In [current_month_year]? (2024)

Vault’s Viewpoint

• 4% interest savings account rates are fairly easy to find right now.
• Higher rates are more common amongst online-only banks or banks offering online accounts.
• When shopping around, don’t forget to consider factors beyond the rates such as monthly fees and minimum monthly balance requirements.

Are 4% Interest Savings Accounts Good?

As of May 2024, the average national rate on U.S. savings accounts is 0.45%, according to the Federal Deposit Insurance Corporation (FDIC). With that in mind, a 4% or higher annual percentage yield (APY) on a savings account is good as it’s more than eight times the national average. It’s also higher than the current inflation rate of 3.4%. That said, some banks offer saving accounts with rates above 5%, and higher returns are possible through other retirement and investment accounts.

8 Banks Offering 4% Interest Savings Account Rates

At the time of this writing, you can find savings accounts with APYs over 4% from the following eight banks.

Capital One Online 360 Performance Savings: 4.25%

Although better known for credit cards, Capital One currently offers the 360 Performance Savings account with a 4.25% APY. It’s a great value as there’s no monthly fee, minimum deposit requirement or minimum balance requirement. On the downside, ATM card access isn’t an option.

American Express Online High Yield Savings Account: 4.25%

American Express, another company notorious for its credit cards, offers an FDIC-insured, high-yield online savings account with a 4.25% APY. You can sign up for this Amex savings account online, don’t have to pay a monthly fee and don’t have to maintain a minimum balance to earn the APY. However, again, ATM card access isn’t an option.

Barclays Online Savings Account: 4.35%

Barclays is an FDIC-insured online bank with roots dating back to 1736 and over 48 million customers worldwide. It currently offers an online savings account with a 4.35% APY and no monthly maintenance fees or balance requirements. However, it also doesn’t come with the ATM card option.

Citizens Bank High-Yield Online Savings Account: 4.50%

Citizens Bank is an FDIC-insured online bank backed by a parent company with over 200 years of banking history. Its high-yield online savings account currently comes with a 4.50% APY, a minimum deposit requirement of just $0.01 and no monthly service fees. However, access is only available through transfers or a check from the bank—no ATM cards are available.

SoFi High-Yield Savings Account: 4.60%

SoFi is an online personal finance company and bank that offers a variety of loan, investing and banking products. Its online savings account currently has an APY of up to 4.60%, no fees and no minimum balance requirements. However, to get the APY, you must schedule a direct deposit to go into the account once every 30 days (no minimum amount) or make at least $5,000 in monthly deposits to your SoFi checking and savings accounts. If you don’t do either, your APY will be just 1.20%

CIT Bank Savings Connect Account: 4.65%

CIT Bank is an FDIC-insured online bank that serves customers in all 50 U.S. states with deposit accounts, CDs and home loans. Its Savings Connect account allows you to earn up to a 4.65% APY. Although there are no monthly service fees, a deposit of at least $100 is required to open the account.

Synchrony High Yield Savings Account: 4.75%

Synchrony is an online, FDIC-insured bank that offers a high-yield savings account with a 4.75% APY. The account doesn’t require a minimum deposit, minimum balance or the payment of monthly fees. Further, you can request an ATM card and checks.

First Foundation Bank Online Savings:4.90%

First Foundation Bank is an FDIC-insured bank with 31 locations across five states. While physically regional, it offers an online savings account with a 4.90% APY to clients anywhere in the U.S. The bank does require a minimum deposit of $1,000 to open the account, but the ongoing minimum balance requirement to earn the APY is just $0.01 and there are no monthly service fees. You can also request an ATM card with this account.

Can You Get Saving Account Rates Above 5%?

Savings accounts with APYs above 5% are not as common, but they do exist. Here are a few examples:

• CIT Bank Platinum Savings: 5% APY on balances of $5,000 or more with no monthly account fees
• Bask Bank Interest Savings Account: 5.10% APY with no monthly account fees
• UFBDirect Secure Savings: 5.25% APY with no minimum balance requirements, no monthly account fees and ATM card access

With rates and terms varying by bank, it’s worth shopping around to see which offers you the best overall value.

When you’re shopping around and comparing high-yield savings accounts, here are the main factors to consider:

• APY: The rate of return you’ll earn per year on your balance, including compounding interest
• Minimum deposit requirement: The minimum amount you must deposit to open the account
• Minimum balance requirement to earn APY: The minimum amount you must keep in the account on an ongoing basis to earn the APY
• Monthly service fee: A fee you have to pay each month to keep the account open and active
• Deposit insurance: Insurance that protects your deposits against bank failures, up to a certain amount
• ATM card: A debit card attached to the savings account
• Other requirements: Any other requirements you must meet to earn the APY, such as making a direct deposit each month
• Limits on transfers: Some banks limit the number of transfers you can make from your savings account each month

A high APY is often the main feature banks advertise, but it’s important to consider all the fine print. A 5% APY may be more appealing than a 4% APY, but that difference can quickly be negated by a monthly service fee. Further, if an account has a minimum account balance or monthly direct deposit requirement, you’ll want to ensure you can continuously meet it.

Are Savings Account Rates Going to Drop Soon?

Interest rates tend to follow the federal funds rate, which has held steady since last summer. As per the May 2024 press release from the Federal Reserve, progress toward the Committee’s goal of 2% inflation has ceased, and rates won’t drop until there’s greater confidence that inflation is moving in the right direction. Many have predicted that rate cuts will happen later this year, but there are no guarantees. That said, when the Fed eventually drops its rate, you can expect your savings account APY to follow suit.

Pros and Cons of 4% Interest Savings Accounts

Not sure if a high-yield savings account is right for you? Here are the main advantages and disadvantages to consider.

Pros

• Low risk: When the funds in your savings account are insured by deposit insurance, you don’t have to worry about losing them. They’ll be protected in the event of a bank failure and aren’t at risk when rates drop.
• Hedge inflation: If you get an APY above the current inflation rate, a savings account can help you keep up with cost-of-living increases.
• Liquid: Savings accounts don’t lock up your money for any specific period. You can withdraw funds when you need them.

Cons

• Earnings fluctuate: Variable interest rates make it hard to predict your future earnings. When market rates drop, your savings account APY will follow.
• Low returns: Savings accounts offer modest returns compared to certain alternative investment vehicles.
• Transfer limits: Some banks limit the number of transfers you can make from a savings account each month.