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- Two credit unions pay over 7% APY on accounts right now: Landmark Credit Union and
OnPath Rewards High-Yield Checking - Product Name Only . However, these are both checking accounts with limitations on eligible balances. - Plenty of high-yield savings accounts pay over 5% APY on your total balance without making you jump through hoops.
- See the best saving account rates »
Banks have been increasing their savings rates for well over a year now. The average interest rate on a savings account is 0.43% APY (Annual Percentage Yield), but many institutions are paying significantly higher rates — and two are even paying over 7% interest.
Is a 7% savings account worth it? Learn more about how a 7% interest rate savings account works, and whether you should bother opening an account with such a high rate.
Which bank gives 7% interest on a savings account?
There are not any banks offering 7% interest on a savings account right now. However, two financial institutions are paying at least 7% APY on checking accounts:
OnPath Credit Union High Yield Checking
OnPath Credit Union is offering
You'll need to meet a few qualifications to be eligible. For one, you must log into your OnPath online or mobile banking account one or more times per statement cycle. You also need to enroll in e-statements and receive them for the eligible statement cycles. Finally, you must make 15 or more debit card purchases that post and settle during the statement cycle.
There's a minimum of
To join OnPath Credit Union, you must live, work, worship, volunteer, or go to school in an eligible field of membership community in Louisiana; be an immediate relative of someone who is eligible to become a remember; work for or have retired from a company that partners with
Landmark Credit Union Premium Checking
Landmark pays
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
Finally, you'll only earn
Overall, the
What does a 7% interest rate on a savings account mean?
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 — and the more often it compounds interest, the more you'll earn in the long run. It's common for banks to compound interest daily 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 understand the bank's rules.
Alternative high-yield savings account options
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.
Customers Bank High Yield Savings Account - Product Name Only :Customers Bank High Yield Savings Account - APY APYUFB High Yield Savings - Product Name Only :UFB High Yield Savings - APY APYValley Direct High Yield Savings Account - Product Name Only :Valley Direct High Yield Savings Account - APY APY
What to look for in a high-interest savings account
Selecting a high-yield savings account is an important decision. Here are factors to consider when making your choice:
- Interest rate: Look at the account's interest rate and how often the bank compounds interest. Find out whether you have to meet criteria to earn the highest rate each month, and if you earn interest on your total balance.
- Fees: Monthly service fees can easily cancel out any interest you earn on your savings account. The best online banks don't charge monthly fees.
- Minimum opening deposit: Some banks don't require any money to open a savings account, while others require thousands. Regardless of the amount, make sure you can afford the opening deposit.
7% APY savings accounts: FAQs
Can you get 7% interest on a savings account?
No, there is not a savings account that pays 7% APY right now. The
Do CDs pay 7% APY?
Yes, some CDs pay 7% APY. The top CD rates change frequently and sometimes may pay 7% APY. We check rates daily to find the best CD rates for a variety of terms.
What savings account has the highest interest rate?
Do I have to declare interest earned on my savings account when I pay taxes?
Yes, you must declare interest earned in any bank account when you file taxes.
Where can I get 10% interest on my money?
You won't earn 10% interest in any bank account. You might be able to earn 10% by investing in assets such as stocks or real estate, but the markets are unpredictable and there's no guarantee.