Best 5% Interest Savings Accounts of 2023: Get Your Money’s Worth

A 5% interest savings account can provide you with a generous return on your money without taking on the risk of investing in the stock market. Many financial institutions offer savings accounts that pay this rate, including several credit unions. High APY rates can help you meet your savings goals, set up an emergency fund, and improve your personal finances long-term.

In order to receive the best rate, many institutions have specific requirements you must meet. This guide will explain your options for savings accounts offering 5% interest, as well as some financial institutions with rates that are close to this threshold.

Key takeaways

• Several banks offer FDIC-insured accounts that pay around 5.00% APY, which is well above the national average.
• Many banks have a cap on the amount of money on which you can earn the full 5.00% rate. Any amount over the limit earns a lower interest rate.
• You may need to meet certain requirements to get 5.00% APY, such as setting up direct deposit. There may be deposit amount requirements as well.
• There are several credit unions that offer NCUA-insured savings accounts that offer these high-interest savings account rates as well.

The best savings accounts for 5% interest

These are the best high-yield savings accounts if you want your money to earn at least 5.00% APY:

• Varo Savings: up to 5.00% (as of Oct. 3, 2023) APY with direct deposit on up to $5,000
• CIT Bank Platinum Savings: up to 5.05% APY¹
• Blue Federal Credit Union: up to 5.00% (as of Aug. 3, 2023) APY
• Netspend Savings: up to 5.00% (as of Aug. 3, 2023) APY
• Mango Savings: up to 6.00% (as of Aug. 3, 2023) APY

Account	Account type	APY	Requirements	Learn more
Varo Savings	Savings	Up to 5.00% (as of Oct. 3, 2023) APY on up to $5,000	Direct deposits totaling $1,000 or more. Both a Varo savings and bank account must have a positive balance at the end of the month.	Visit Varo
CIT Bank Platinum Savings	Savings	Up to 5.05% APY on balances over $5,0001	Direct deposits totaling $5,000 or more. The minimum to open a CIT Bank Platinum Savings account is $100.	Visit CIT Bank
Blue Federal Credit Union Accelerated Savings	Savings	Up to 5.00% (as of Aug. 3, 2023) APY on balances up to $1,000	Membership in Blue Federal Credit Union	Visit Blue Federal Credit Union
Netspend Savings	Savings with prepaid debit card	Up to 5.00% (as of Aug. 3, 2023) APY on balances up to $1,000	You must have a Netspend card account.	Visit Netspend
Mango Savings	Savings with prepaid debit card	Up to 6.00% (as of Aug. 3, 2023) APY on balances up to $2,500	A Mango card. A minimum $25 savings account deposit balance. Signature purchases of $1,500 or more per month.	Visit Mango Money

Varo

Pros	Cons
Up to 5.00% (as of Oct. 3, 2023) APY with direct deposit requirement 3.00% (as of Oct. 3, 2023) regular APY No fees required for the savings account No minimum balance required to keep your account open	You need a substantial direct deposit amount each month to qualify for the highest APY rate You can only earn the highest APY rate on up to $5,000 You must have a Varo bank account and a savings account with positive balances

Varo is a digital consumer bank that launched in 2020 with “the goal of being a force for good.” Most online banks aren’t actually banks — they’re fintech platforms with associated partner banks, but Varo is a chartered nationwide bank and member FDIC.

The company offers both bank accounts and savings accounts, as well as Varo Advance, which provides cash advance loans of up to $250 to cover unexpected expenses.

Varo Savings lets you get up to 5.00% (as of Oct. 3, 2023) APY, which is one of the most generous rates in the industry, but you must deposit at least $1,000 and end the month with a positive balance in both a Varo bank account and your Varo savings account to qualify for this rate for the upcoming month. You can also qualify for the highest APY rate only on balances up to $5,000.

The good news is, any remaining balance above that $5,000 earns a still-generous 3.00% (as of Oct. 3, 2023) APY (as does your total balance on months where you don't meet the requirements for the higher interest rate).

Why we like it: Opening an account is quick and simple online. There's no minimum balance required to maintain an account, and Varo has no monthly fees. Plus, if you don't earn the highest 5.00% (as of Oct. 3, 2023) APY rate on all of your money, you'll still earn a relatively generous 3.00% (as of Oct. 3, 2023) APY.

What we don’t like about it: The $1,000 minimum direct deposit balance can be hard for some people to meet, and you're required to have both a bank account and savings account to qualify for the highest interest rate. Also, you only earn this rate on only a limited amount of your deposited funds — up to $5,000 max.

Visit Varo

… or read our full Varo review

CIT Bank

Pros	Cons
Up to 5.05% APY with minimum balance requirement1 No fees required for the savings account FDIC insured $100 minimum deposit requirement	You can only earn the highest APY rate on savings over $5,000 Online only, no branch access No ATM access

CIT Bank is an online-only division of First Citizens Bank. Since it's entirely online, there are no physical branches or ATMs available. However, CIT Bank provides up to $30 ATM reimbursement per month, so you can still use your ATM card at other banks.

CIT Bank members have access to multiple financial products, including checking and savings accounts, certificate of deposits, and money market accounts. The bank also offers home loans. You can use the mobile app to manage these accounts, deposit checks, and transfer funds.

Why we like it: CIT Platinum Savings accounts earn up to 5.05% APY¹ on savings over $5,000, compared to the Federal Reserve Savings Rate of 0.46% (as of Nov. 2, 2023) APY. Additionally, CIT charges no fees on its Platinum Savings account.

What we don’t like about it: You need a minimum of $5,000 in your Platinum Savings account in order to qualify for the 5.05% APY, and it only applies to the amount above. Also, there are no physical branches if you prefer to visit your bank in person.

Visit CIT Bank

Blue Federal Credit Union

Pros	Cons
Up to 5.00% (as of Aug. 3, 2023) APY You don't have to make a monthly transfer to be eligible to earn dividends No minimum balance requirements Relatively easy to qualify for credit union membership	You can only earn the highest APY on a maximum of $1,000 Interest rates drop quickly for higher balances Must be a credit union member, which requires a one-time upfront donation and small deposit.

Blue Federal Credit Union is a credit union, which means you must be a member to take advantage of the financial products on offer. You can become a member through a family relationship, employment relationship, or by donating to the Blue Foundation.

Members have access to a wide variety of financial products, including savings and checking accounts, credit cards, certificates of deposit (CDs), and loans. Blue Federal's Accelerated Savings gives up to 5.00% (as of Aug. 3, 2023) APY on balances up to $1,000. For larger balances, there's a tiered rate structure. You’ll see a big dropoff in the interest you receive on higher amounts.

Why we like it: Blue Federal has no minimum balance required and charges no fees to maintain an Accelerated Savings account. You also do not need to make monthly transfers or use it as a direct deposit account to be eligible to collect dividends. Plus, the maximum 5.00% (as of Aug. 3, 2023) APY on up to $1,000 is a generous rate.

What we don’t like about it: Blue Federal only pays the highest APY rate on up to $1,000, which is well below what competitors such as Varo offer. And Blue Federal’s APY rates are much lower for large balances. You also have to pay for membership, although it’s a pretty small one-time payment and half of it goes to Blue Federal’s charitable organization.

Visit Blue Federal Credit Union

Netspend

Pros	Cons
Up to 5.00% (as of Aug. 3, 2023) APY No minimum balance required You can set up automated transfers to savings No monthly direct deposit minimums to get the maximum APY	You must have a Netspend prepaid debit card account and use it to transfer money to your savings account You can only transfer money from savings to your Netspend card six times monthly You can only earn the highest APY on balances up to $1,000

Netspend is best known for its prepaid debit card, which has more than 10 million users. But Netspend offers a savings account as well. In fact, you can automatically transfer money from your Netspend card account into savings or manually transfer money over when you have a little extra money. When you transfer money to savings, you'll get a generous 5.00% (as of Aug. 3, 2023) APY on a balance of up to $1,000.

Why we like it: Netspend doesn’t require a minimum balance in order to open a savings account or to qualify for up to 5.00% (as of Aug. 3, 2023) APY. You also don’t need to set up direct deposit in order to get access to this generous interest rate. You can simply move money over when you want to or set up AutoSave to automatically transfer money into savings whenever you load funds on your Netspend card.

What we don’t like about it: You must have a Netspend debit card account to take advantage of the Netspend savings account. The prepaid debit card account includes fees, which vary depending on if you opt for the Pay-As-You-Go Plan or the Monthly Plan. You also earn the the highest APY only on balances up to $1,000 while the rate for money over this amount is very low.

Visit Netspend

Mango Money

Pros	Cons
Up to 6.00% (as of Aug. 3, 2023) APY, which is higher than many competitors Only a $25 minimum balance needed to qualify for the highest APY	You must have a Mango Card in order to qualify for the savings account, and this card charges fees You must make signature purchases of at least $1,500 each month to qualify for the highest APY The APY on balances above $2,500 is very low

Mango describes itself as providing a "fresh way to manage money." It features a Mango Card, which you can qualify for with no credit check or activation fee.

The Mango Card is a prepaid MasterCard, which you can add money to and use wherever MasterCard is accepted. As a prepaid debit card, the Mango Card comes with fees, including ATM or teller withdrawal fees, a monthly fee, and an inactivity fee. But once you've opened your Mango Card, you can easily begin saving in a high-yield savings account.

Why we like it: Mango’s highest 6.00% (as of Aug. 3, 2023) APY is higher than what most competitors offer. You also don't need a large balance to get it, or a certain number of direct deposits. This theoretically makes it easier to qualify for the highest APY.

What we don’t like about it: You're eligible for a savings account only if you have a Mango Card, which means paying the fees that come with it. You also must make at least $1,500 worth of signature purchases on your Mango prepaid debit card to get the highest rate, which is a lot to spend every month. If you can't meet these requirements, your APY will be much lower. The $2,500 limit on the highest APY is also lower than some other competitors.

Some prepaid debit card accounts charge fees for signature purchases, but Mango only charges a signature purchase fee on international transactions.

Visit Mango Money

Savings accounts with close to 5% interest

• Current Savings Pods: 4.00% (as of Nov. 21, 2023) APY
  
• CIT Bank Savings Connect Account: 4.65% (as of Aug. 29, 2023) APY 
• Wealthfront Cash Account: 5.00% APY
  
• UFB Premier Savings: up to 5.25% (as of Oct. 3, 2023) APY
  
• Bread Savings: 4.65% (as of May 23, 2023) APY
• Betterment Cash Reserve: up to 5.50% (as of Jul. 31, 2023) APY²
• T-Mobile MONEY: up to 4.00% (as of Aug. 29, 2023) APY
• LendingClub High-Yield Savings: 4.50% (as of Oct. 3, 2023) APY
• SoFi Savings: 4.60% APY with direct deposit
• Popular Direct High-Rise Savings: 4.85% (as of May 23, 2023) APY

 

While these accounts don't offer a full 5.00% APY, they are close to that level. However, you will want to check the individual requirements for each account to make sure you qualify for the highest rate, as there are often requirements you have to meet and limits on the amount of money you can earn on.

For example, CIT Bank provides a rate of 4.65% (as of Aug. 29, 2023) APY on its Savings Connect account, but there's a $100 minimum opening deposit required to open your account. And T-Mobile MONEY provides up to 4.00% (as of Aug. 29, 2023) APY on balances up to $3,000 if you're enrolled in a qualifying T-Mobile Plan, registered for perks with your T-Mobile ID, and have made at least 10 qualifying transactions or instant payments using T-Mobile MONEY or your checking account.

APY vs. simple interest rate and APR

APY stands for annual percentage yield and it’s a bit different from an interest rate, or an annual percentage rate (APR). An APY rate accounts for the effect of compound interest while APRs and simple interest rates do not.

For example, an account with 5.00% APY where interest compounds daily will have an APR of 4.88%.

Savings accounts commonly advertise the APY first and you may have to dig a bit to find the APR. APRs can also fluctuate depending on how often interest compounds. Accounts with interest that compounds daily will likely list lower APRs than accounts where interest compounds monthly. And APRs are also different from simple interest rates, which don’t account for things like fees.

If you want a longer-term view on how your account will perform, then the APY is more important — especially for stable account balances. But if your account balance tends to fluctuate a lot throughout the year, then you may find it more useful to look at the APR.

How to choose the best accounts with 5% interest

To pick the best savings accounts with a 5.00% APY, there are a few key tips you should follow:

• Understand the requirements you need to meet: Depending on the account you choose, you may have to meet direct deposit requirements, use other financial products, or meet other criteria such as becoming a credit union member before you can get the highest APY rate.
• Know how much money you can earn 5.00% APY on: It’s hard to find a savings account (or other type of account) that offers 5.00% APY on an unlimited sum of money. You may get this generous rate only on balances up to $1,000, $2,500, or $10,000.
• Know what APY applies if you don't meet the requirements: If you do not meet the requirements for the 5.00% APY, find out what rate you will earn on your money. If it’s very low and you know you won’t always be able to meet the rate requirements, then you could ultimately earn more with a lower-rate savings account that has fewer hoops to jump through.

Do your research to make sure that a specific account works for you and your budget.

FAQ about 5% interest savings accounts

Methodology

We looked for savings accounts or similar accounts (such as cash reserve, prepaid debit card, and rewards checking accounts) with at least 5.00% APY for our main picks. All of our picks offer mobile banking. We did not include money market accounts. We also excluded credit unions with location-based membership requirements. For our secondary list of picks, we looked for savings accounts with 4.00% APY or above. We did not consider every possible account available on the market for either list.