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.
- 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.
|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 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.
Join The Bank with 0 Monthly Fees
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.
… or read our full Varo review
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.
High Yield Savings Account. $5,000 minimum balance. FDIC Insured.
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.
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.
Blue Foundation donation optionYou need $10 to become a credit union member through a donation to the Blue Foundation. Blue Federal uses $5 to establish your account and the rest goes to the foundation. That’s a more accessible membership requirement than many credit unions offer.
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.
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.
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.
What is a signature purchase?A signature purchase is when you sign the receipt to complete a transaction rather than enter your debit card PIN. Press “credit” at checkout (rather than debit) to make it a signature purchase.
Some prepaid debit card accounts charge fees for signature purchases, but Mango only charges a signature purchase fee on international transactions.
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
High Yield Savings Account. $5,000 minimum balance. FDIC Insured.
Online-only banking service.3 Get paid up to 2 days faster with direct deposit4 and Instant removal of gas holds. Earn up to 4.00% (as of Nov. 21, 2023) APY5 with Current Interest. FDIC Insured through Choice Financial Group.
High Yield Cash Management Account. $1 minimum deposit. FDIC Insured.
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
Can you get a 5.00% APY?
Yes, it’s possible to get 5.00% APY if you choose the right savings account and meet its requirements for earning this rate. Typically, those requirements include things like maintaining a certain account balance or having a certain amount of money directly deposited on a monthly basis. You will usually also be capped at how much money you can earn 5.00% APY on.
Do 5% interest savings accounts have minimum deposits?
Some of them do. For example, Mango Savings offers up to 6.00% (as of Aug. 3, 2023) APY, but you must have a minimum of $25 deposited. But some accounts are more lenient.
Varo’s savings account offers up to 5.00% (as of Oct. 3, 2023) APY with no minimum balance requirement other than a positive balance. Varo does have a direct deposit requirement, though. Be sure to read the details carefully when you look for a high-interest savings account.
Do 5.00% APY savings accounts have caps?
Usually, yes. Savings accounts offering 5.00% APY do typically cap the amount of money you can earn this interest rate on. For example, Netspend's Savings accounts caps the amount you can earn the highest interest rate on at $1,000. Others have higher caps, such as Consumers Credit Union Rewards Checking, which will pay its highest APY rate on balances up to $10,000.
How long will it take $1,000 to double at 5% interest?
It would take about 14.4 years for your money to double if you are earning 5% interest, assuming your interest compounds annually.
What is the rule of 69?
The rule of 69 is a method people use to estimate how long it would take for invested funds to double if interest compounded continuously. To figure out a principal’s doubling time using this rule, divide 69 by the rate of return for your investment and then add .35 to the number you get.
For example, if you were earning a 10% return with continuous compound interest, you could divide 69 by 10 and then add 0.35 to get 7.25 years.
Keep in mind that compound interest doesn’t work this way in the real world. Interest typically compounds daily, monthly, or annually.
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.
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