Best 5% Interest Savings Accounts [2025]: 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 APYs 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

APY: Up to 5.00% (as of 04/25/25) APY on up to $5,000

Requirements: 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.

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 $500 to cover unexpected expenses.

Varo Savings lets you get up to 5.00% (as of 04/25/25) 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 2.50% (as of 12/11/24) 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 04/25/25) APY rate on all of your money, you'll still earn a relatively generous 2.50% (as of 12/11/24) 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.

Read our full Varo review

Blue Federal Credit Union Accelerated Savings

APY: Up to 5.00% (as of 05/02/25) APY on balances up to $1,000

Requirements: Membership in Blue Federal Credit Union

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 05/02/25) 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 05/02/25) 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.

Netspend Savings

APY: Up to 6.00% (as of 08/26/24) APY on balances up to $2,000

Requirements: You must have a Netspend card account.

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 6.00% (as of 08/26/24) APY on a balance of up to $2,000.

Why we like it: Netspend doesn't require a minimum balance in order to open a savings account or to qualify for up to 6.00% (as of 08/26/24) 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 $2,000 while the rate for money over this amount is very low.

Savings accounts with close to 5% interest

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Earn up to 4.40% APY

Earn up to 4.40% APY¹ <p>LevelUp Rate of 4.40% Annual Percentage Yield (“APY”) is applied to the full balance of LevelUp Savings accounts that receive a total of at least $250 in deposits during the Evaluation Period. Otherwise, accounts will earn the Standard Rate of 3.75% APY. Interest payments, account bonuses, account credits and reversals or refunds from the bank are not considered deposits for rate evaluation purposes. All LevelUp Savings accounts earn the LevelUp Rate at account opening and continue to earn the LevelUp Rate until the First Evaluation Period, to provide an opportunity to set up deposits. </p> <p>An Evaluation Period is a statement cycle. The First Evaluation Period will be the third statement cycle after you open your account, with any rate change becoming effective the next statement cycle. For example, if you open in August, the first Evaluation Period would be October with any rate change effective in November. Any rate changes will take place on the second business day and will be based on deposits in the previous statement cycle. </p> <p>APY accurate as of 3/28/2025. Rates are variable and subject to change at any time without notice, at the sole discretion of the bank. Fees may reduce earnings. $0 minimum opening deposit.</p> when you open a new LevelUp Savings account and deposit $250+ per month. Member FDIC.

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CIT Bank Platinum Savings - 4.10% APY² <p>Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. APYs — Annual Percentage Yields are accurate as of Mar. 20 2025: 0.25% APY on balances of $0.01 to $4,999.99; 4.10% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.</p>

Open a Platinum Savings account and get up to $300³ <p>This limited time offer to qualify for a $225 cash bonus with a minimum deposit of $25,000 or a $300 bonus with a minimum deposit of $50,000 is available to New and Existing Customers who meet the Platinum Savings promotion criteria. The Promotion begins on February 26, 2025 and can end at any time without notice. Customers will receive a $225 or a $300 bonus provided that the program requirements are met:</p><p>New CIT Bank Customers: Offer valid for a New CIT Bank Customer, who, at account opening, does not have a valid CIT Bank User ID (a “New Customer”), or any open CIT Bank accounts provided that the following requirements are met:</p><p><b>Offer Requirements</b></p><p>New customers must open a Platinum Savings account with a valid Promo Code, “PS2025.” The Platinum Savings account Bonus Promo Code will appear on the online account opening enrollment web page. The Promo Code must be used at the time of account opening. Accounts opened during the program period without the Promo Code are ineligible to receive the bonus.</p><p>New customers must deposit at least $25,000 for a $225 bonus, or at least a minimum of $50,000 for a $300 bonus into the enrolled Platinum Savings account within the first 30 calendar days following account opening (the “Funding Period”). The single or multiple deposit(s) of $25,000 or $50,000 or more used to fund the account must come from a funding source outside of CIT Bank. Transfers from existing CIT Bank accounts will not qualify. Funds already on deposit with CIT Bank are ineligible.</p><p>The enrolled Platinum Savings account must be open at the time of the bonus payment to qualify.</p> Enter promo code PS2025 at opening. $100 minimum opening deposit. Member FDIC.

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UFB Portfolio Savings - 4.01% APY⁴ <p> The Annual Percentage Yield (APY) is accurate as of 12/9/2024. The interest rate and corresponding APY for savings is variable and is set at our discretion. This is a tiered variable rate account. Interest rates may change as often as daily without prior notice. Fees may reduce earnings.</p>

High Yield Savings Account. No Minimum Balance. FDIC Insured.

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Wealthfront Cash Account - 4.00% APY⁵ <p>Rate is current as of November 15, 2024.</p>

High Yield Cash Management Account. $1 minimum deposit. FDIC Insured.

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While these accounts don't offer a full 5.00% APY, they consistently provide competitive rates. 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.

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.

FAQs

Bottom line

As you can see, getting 5% APY on your savings account is possible, but your options may be a bit limited. You'll be capped on the amount of balance on which you can earn that rate and some accounts come with direct deposit requirements to earn the highest possible APY. 

If you can't or don't want to meet the requirements for these accounts, check out our list of the best savings accounts for alternatives that likewise come with a high — though not quite as high — APY.

Reach Your Savings Goals Faster

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2025 award winner Best Checking and Savings Combo

SoFi Checking and Savings Benefits

• Earn up to 3.80% APY⁶ <p>SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.</p> and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits⁷ <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.80% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement.&nbsp;Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet" >http://www.sofi.com/legal/banking-rate-sheet</a>.</p>
• No account, overdraft, or monthly fees⁸ <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>
• Get your paycheck up to two days early⁹ <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p>
• Access additional FDIC insurance up to $3 million¹⁰ <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, &quot;Helvetica Neue&quot;, Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.&nbsp;Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at&nbsp;<a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>

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