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- A 7% interest savings account is hard to come by.
- There aren't any savings accounts paying 7% interest, but there are two checking accounts with that APY or higher.
- Both checking accounts have limits, and one is only openable in Wisconsin and Illinois.
The average interest rate on a savings account is 0.42%% APY (Annual Percentage Yield), but many institutions are paying significantly higher rates.
Is a 7% savings account worth it? Learn more about how a 7% interest rate savings account works and where to find one.
Understanding 7% interest savings accounts
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. The more often interest is compounded, the more you'll earn in the long run. It's common for banks to compound interest daily on savings accounts 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've read the fine print.
How to qualify for 7% interest savings accounts
Requirements vary by financial institution. While some banks and credit unions require a balance of just $1 or $5 to start earning interest, others may require $10,000 or more to earn the highest available APY.
In other cases, you may need to set up recurring direct deposits to earn the bank's top APY on your savings balance.
Top banks offering 7% interest savings accounts
There are no national or community banks offering 7% interest on a savings account right now. There are two high-yield checking accounts that offer 7% interest or more on an account, but both come with major stipulations.
BCU is a credit union anyone can join by subscribing to BCU's Life. Money. You. program at no cost. The credit union has a high-yield checking account, BCU PowerPlus Checking. It offers up to 8.00% APY as long as you meet its stringent requirements, but only for a maximum of three months.
To earn its highest rate, you have to meet its highest tier of interest, called Level Two. To make your account Level Two, you'll need to have at least $3,000 worth of direct deposits a month, along with at least 30 transactions (like debit card purchases) each month. You'll also need to enroll in eStatements.
You'll usually only earn 4.00% APY on your first $15,000 if you meet these requirements, but new members can open a new BCU PowerPlus Checking account before December 31, 2024, to double that APY for three months. You can only open one account per member. If you put more than $15,000 in your account, you'll only earn 0.01% APY on anything over $15,000.
One other credit union offers an interest rate of over 7% on its high-yield checking account. Landmark Credit Union, which serves residents in select counties in Wisconsin and Illinois, pays 7.50% APY on its Landmark Credit Union 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% annual interest rate. Direct deposits must come from an employer, payroll provider, pension or government benefits provider, or a gig economy payer such as DoorDash.
Importantly, you'll earn 7.50% only 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.
Comparing 7% interest savings accounts to other savings options
Best alternative high-yield savings accounts right now
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.
Certificates of deposit
If you want to set aside money for a mid-term or long-term savings goal, consider opening a CD.
CD rates are comparable to high-yield savings rates right now, but provide the opportunity to lock in a high rate for your entire term length. Savings account rates are variable.
Benefits of 7% interest savings accounts
A 7% interest savings account would offer earning potential that rivals stock investments — without the risk. A $10,000 deposit with daily compounding would earn around $725 in interest over 12 months.
Potential drawbacks of 7% interest savings accounts
If you manage to find a savings account paying 7% interest, there will likely be fine print — whether that's high deposit requirements or a tiered earning structure that offers a lower rate on higher balances.
7% APY savings accounts FAQs
When an account pays 7% APY, you'll earn 7% on your balance over a year.
There is not a savings account that pays 7% APY right now. There are two high-yield checking accounts with interest of at least 7%, though: BCU PowerPlus Checking and Landmark Credit Union Premium Checking Account. Both come with major downsides, though.
Any account that is insured by the Federal Deposit Insurance Corporation or National Credit Union Administration is a safe place to keep your savings.
*Earn 4.75% APY when you deposit at least $250 per month, earn 3.75% standard APY if minimum isn't met.
**Accounts with $250,000 or less will earn 4.35% APY, accounts with over $250,000 will earn 4.65% APY . Rate are determined by balance tiers and amount deposited.
***SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
