Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
Landmark Credit Union pays 7.50% APY on its high-yield checking account right now.
But the credit union only pays a high rate on balances up to $500, and you have to meet certain criteria to qualify.
Plenty of high-yield savings accounts pay over 5% APY on your total balance without making you jump through hoops.
See today’s best high-interest accounts »
Banks have been increasing their savings rates for well over a year now. The average interest rate on a savings account is 0.42% APY (Annual Percentage Yield), but many institutions are paying significantly higher rates — and one is even paying over 7% interest.
Is a 7% APY rate 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.
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.
Filter your search by institution, or by type of institution (e.g., minority-led, family-owned, or supports small business)
Interest is compounded daily and paid monthly
Deposits are federally insured by the FDIC or NCUA
Additional Reading
Read our review
Which bank gives 7% interest on a savings account?
Right now, only one financial institution is paying at least 7% APY: Landmark Credit Union. Landmark pays 7.50% on its 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% interest rate.
Finally, you’ll only earn 7.50% 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 only earn 0.11% APY, well under the national average.
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.
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.
Milli Account: 5.25% APY on Savings Account and Jars
Betterment Cash Reserve: 5.25% APY for new customers; 4.50% APY standard rate
Western Alliance High Yield Savings Account, powered by Raisin: 5.15% APY
New Customer Offer: Earn 5.25% (variable) APY* when you open your first cash account with qualifying deposit
Show more
Minimum Deposit Amount
$10
Editor’s Rating
4.25/5
4.25 out of
5 Stars
Pros & Cons
Pros
Competitive APY
$10 minimum deposit
No minimum balance requirements
No monthly service fees
No transaction limits
FDIC insured for up to $4 million
Create savings goals
The “two-way sweep” moves extra money from checking to cash reserve to help you save
Cons
No physical branch locations
Mobile check deposit is limited to certain customers
You can only deposit up to $1,500 in paper checks per day
No way to deposit cash
Highlights
More Information
By linking to a Betterment Checking Account (Member FDIC), you can set up the “two-way sweep,” which helps you save automatically, earn more interest, and set up overdraft protection
You can use mobile check deposit if a) you’ve been a Betterment customer for at least 30 days, and b) you have received at least $500 in direct deposits in the last month
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 Landmark Credit Union Premium Checking Account pays 7.50% APY, but only on balances up to $500. If you keep more than $500 in your account, you’re better off opening a high-yield savings account that pays a slightly lower rate on your total balance.
Do CDs pay 7% APY?
No CDs pay 7% APY yet. The highest CD rate right now is with Old Point National Bank, which pays 6.02% APY on its 6-month CD for Virginia residents. If you live outside of Virginia, the highest rate is 5.65% APY on a 9-month CD with NASA Federal Credit Union.
What savings account has the highest interest rate?
The CloudBank 24/7 High Yield Savings Account, powered by Raisin currently pays the highest savings account rate at 5.11% APY. Raisin is a digital marketplace that sets you up with high-interest accounts at partner banks.
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.
Laura Grace Tarpley, CEPF
Personal Finance Reviews Editor
Laura Grace Tarpley (she/her) is a personal finance reviews senior editor at Insider. She oversees coverage about mortgage rates, refinance rates, lenders, bank accounts, investing, retirement , and borrowing and savings tips for Personal Finance Insider. She was a writer and editor for Insider’s “The Road to Home” series, which won a Silver award from the National Associate of Real Estate Editors. She is also a Certified Educator in Personal Finance (CEPF). She has written about personal finance for seven years. Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at ltarpley@insider.com. Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services »
Earn 5.20% APY with Western Alliance Bank, or choose from more than 30 insured banks and credit unions with today’s top rates. Raisin offers one account to maximize your savings.
American Dollar Exchange Rate