Banks With 5% High-Yield Savings Accounts
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Rising interest rates have made it easier to find banks with high-yield savings accounts. You can find many banks that offer 3% to 4% for their certificates of deposit (CDs), but what about a 5% yield for a traditional savings account? Getting a higher yield can significantly impact your finances and make it easier to achieve your money goals.
While the difference between 4% and 5% is a single percentage point, it actually represents a 20% increase in your interest payment. If you put $10,000 into a high-yield savings account, a 5% yield brings in $500, while a 4% yield only brings in $400.
I opened up several CDs in 2023 with 4% yields. I felt smart then, but I'm parking future CD money into a high-yield savings account with a 5% yield or higher. Accounts with yields above 5% APY exist, and this list covers a few of them.
Jump To
Overview of the banks with 5% high-yield savings accounts
High-Yield Savings Account | Best For |
|---|---|
Varo | Ability to access funds |
CFG Bank | Long-term CDs |
Alliant Credit Union | CDs with high balances |
Bethpage Federal Credit Union | Low minimum deposit requirement |
Forbright Bank | Sustainability |
BrioDirect | Promotional rate |
Banks with 5% high-yield savings accounts
Varo
Varo has a savings account with a yield of up to 3.00% - 5.00%. You don't have to lock away your money for a year or worry about penalty fees if you need to withdraw money early. Varo also has several banking features that help people save money on overdraft fees and get rewarded for their spending.
While a 3.00% - 5.00% yield on a savings account you can access at any time sounds good, there is a catch. The 3.00% - 5.00% APY only applies to the first $5,000 in your Varo savings account, while every dollar above $5,000 grows at 3% APY. If you have $10,000 in your Varo Savings account, it would only yield 4%.
You also have to deposit at least $1,000 per month in your Varo account and make at least five purchases each month with your Varo Visa Debit Card to qualify for the 3.00% - 5.00% yield. You will only receive 3% APY on your Varo balance if you do not perform those steps. If you want to get to five monthly purchases with the debit card, I recommend using it for small monthly subscriptions. That way, the purchases take place in the background while helping you lock in a 3.00% - 5.00% APY.
Varo is a highly touted online bank with many great features, but you have to commit to the fintech company to receive a 5% yield. You only get 5% APY for the first $5,000. It can be a great option when starting out since it has no restrictions and provides plenty of great features, but if you have well over $5,000 to spare, you may want to consider another high-yield savings account.
- Fees: No fees
- Where to get started: You can visit Varo's website to create an account.
- Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
Use AmONE to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- With personal loan interest rates rising, now could be a great time to find a personal loan. Through our partner AmONE, you could get matched to a lender who could offer as much as a $50k loan with rates as low as 5.99% APR.
- Approval and loan terms vary based on applicant qualifications. Not all applicants will qualify for the full amount or lowest available rates. It takes minutes to see your results. And don't worry- filling out the form won't hurt your credit score and is free, so why not give it a try?
CFG Bank
CFG Bank has offered personal and commercial banking services since 1992, and its high yields may attract more clients. The bank has money market accounts available that yield 5.25% APY. You can also get a 12-month CD with CFG Bank with a 5.31% APY.
The CDs have generous minimums. You only need $500 to open a CD with CFG Bank, while you will need $1,000 to open a high-yield savings account. Some banks have lower minimums or none, but few offer yields higher than 5%.
If you want to make small contributions to your monthly bank account, the money market account is the better choice. Just make sure you always keep your balance above $1,000 to avoid a $10 service fee. This account still has an APY above 5%, and you can make additional deposits anytime.
The ability to make unlimited deposits is a significant distinction over CDs, which cannot receive additional deposits after you make the minimum deposit. If you make a $500 deposit to create one CD and save $100 for next month, you cannot deposit that $100 into your existing CD or create a new CD account. You have to make a $500 minimum deposit for each CD you create.
CFG Bank also offers checking accounts, which can help with your banking, but the interest rates aren't impressive. Your checking account must exceed $50,000 to qualify for 0.25% APY.
- Fees: No fees — only a $10 service fee if your money market account's balance falls below $1,000
- Where to get started: You can visit CFG Bank's website to create an account.
- Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
Alliant Credit Union
Alliant Credit Union is a digital credit union that offers loans, retirement accounts, insurance policies, credit cards, and other financial products. Alliant acts as an all-in-one stop for consumers, and its high-yield savings account makes the online bank more enticing.
Alliant has a 12-month CD yielding 5.15% APY and an 18-month certificate bringing in 5.05% APY. Each certificate of deposit has a $1,000 minimum deposit. It's higher than the minimum deposit at CFG Bank.
Alliant Credit Union rewards people with a higher APY for initial deposits above $75,000. This deposit is a jumbo CD, giving you a few extra basis points on your APY. While a regular 12-month CD yields 5% APY, the jumbo CD yields 5.05% APY. Some yields are the same for regular and jumbo certificates, such as the 48-month certificate (both types of 48-month CDs yield 4.30% APY).
You shouldn't put $75,000 into a CD just for the jumbo rates as it only increases your interest income by less than $50. If you already planned on putting $75,000+ into a CD, you might as well open a jumbo CD with Alliant instead of using one of their regular CDs. Treat the jumbo rate as a very small bonus for a useful financial product.
- Fees: No fees
- Where to get started: You can visit Alliant's website to create an account.
- Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
Bethpage Federal Credit Union
The Bethpage Federal Credit Union currently serves over 440,000 members across 30 locations. The credit union has been around for over 80 years, and the 5.00% APY high interest rates on their savings account give members more reasons to stick around.
You can get a 12-month CD at 5% APY. It's the highest rate among Bethpage's credit unions. 18-month and 24-month CDs both have 4.25% APY.
The high-yield CDs from Bethpage combine high yields and low minimum deposit requirements. Banks offering 3% to 4% APY for their CDs often have no minimum deposit requirement, while banks with 5% APY or higher usually require hundreds of dollars for the initial deposit.
For a Bethpage CD, you only need to invest $50. You are free to put more money into the CD to reap more interest, but it is a significantly lower barrier to entry than other banks that let you receive 5% APY on your funds.
- Fees: No fees
- Where to get started: You can visit Bethpage's website to create an account.
- Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
Forbright Bank
Forbright is a fossil-free certified bank that strives to help build a brighter, more sustainable future. The bank takes its mission for sustainability seriously, not just with the environment but also for interest rates on savings accounts.
You can open a certificate of deposit with Forbright Bank and get 5.50% APY on a 12-month term. While 5.50% is a great APY, the interest rates for the remaining CDs aren't as impressive. The 24-month, 36-month, and 60-month CDs all have 3.00% APY. At that point, you may as well store money in Varo that you can access at any time or pick a CD at a higher rate.
However, if you want a 12-month CD, Forbright Bank delivers one of the best APYs in the industry. The minimum deposit to open a CD with Forbright Bank is $1,000. The deposit is on the high end for what most banks require, but you are getting a great interest rate if you have enough money ready to go.
Forbright Bank also helps people with credit cards, retirement accounts, lending, and business banking. The bank has great resources extending beyond a high-yield savings account.
- Fees: No fees
- Where to get started: You can visit Forbright's website to create an account.
- Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
BrioDirect
BrioDirect offers one of the best yields in the industry. The bank's 12-month CD has a 5.35% APY which is higher than other banks on this list. You only need $500 to get started with one of their CDs.
While 5.35% APY is a great rate, it's not for everyone. This high yield is part of a promotion that caters to incoming members. If you create a new account with BrioDirect, you can qualify for a 12-month CD at 5.35% APY. It is one of the best rates around, but the follow-up rates aren't as impressive.
Once the promotional rate goes away, the remaining CDs aren't as impressive. A 24-month CD with BrioDirect only has a 2.30% APY, while a 36-month CD has a 2.45% APY. It's possible to find CD rates at other banks exceeding 4% APY for both term durations.
Opening a bank account with BrioDirect is straightforward. You will get access to a competitive rate immediately, but the rates aren't nearly as high after the initial promo period. BrioDirect can be a great resource to build your savings over the next 12 months, but you may have to shop around after those 12 months are up to get a comparable rate.
- Fees: No fees
- Where to get started: You can visit BrioDirect's website to create an account.
- Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
Related: Best High-Yield Savings Accounts
Summary of banks with 5% high-yield savings accounts
High-Yield Savings Account | APY for 12-Month High-Yield Savings Account | Minimum Deposit Requirement |
|---|---|---|
Varo Online Savings Account | 3.00% - 5.00% APY for the first $5,000 if you qualify. 3% APY for everything else | No minimum deposit requirement |
CFG Bank High-Yield Money Market Account | 5.25% APY | $500 |
Alliant Credit Union 12-Month CD | 5.15% APY | $1,000 |
Bethpage Federal Credit Union High-Yield Savings Account | 5.00% APY | $50 |
Forbright Bank 12-Month CD | 5.50% APY | $1,000 |
BrioDirect 12-Month CD | 5.35% APY | $500 |
FAQs
Are high-yield savings rates increasing?
High-yield savings rates have been increasing in response to the Fed raising rates and banks remaining competitive.
How much is $5,000 with 5% interest?
If you put $5,000 into a CD that earns 5% APY, you will receive $250 for the year. That averages to $20.83 per month.
How much interest do you earn with $100,000?
If you get 5% APY, you will earn $5,000 in one year after making a $100,000 deposit. A higher interest rate allows you to earn more on your investment.
Use AmONE to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- With personal loan interest rates rising, now could be a great time to find a personal loan. Through our partner AmONE, you could get matched to a lender who could offer as much as a $50k loan with rates as low as 5.99% APR.
- Approval and loan terms vary based on applicant qualifications. Not all applicants will qualify for the full amount or lowest available rates. It takes minutes to see your results. And don't worry- filling out the form won't hurt your credit score and is free, so why not give it a try?
Why you should (or shouldn't) use a high-yield savings account
A high-yield savings account is a useful financial product that lets you earn a risk-free return on your funds. You don't have to worry about your balance fluctuating based on how the stock market performs, and some high-yield savings accounts let you access money at any time.
If you have cash sitting around that you won't need for a while and prefer to earn a risk-free return, a high-yield savings account can be a great idea. However, if you believe you can earn a higher return with other investments, investing in stocks and real estate may make more sense.
You should also consider how soon you need access to the funds. A high-yield savings account is optimal for money you will not need for several months or years. The cash you need for everyday expenses should go into a checking account instead, where it is more accessible. A Varo bank account may make the most sense for this scenario since you can withdraw from your high-yield savings account at any point while earning 3%-5% APY.
The bottom line
The yield on your bank account is an easy way to earn money. You get rewarded for storing your funds with the bank, but some banks reward their clients better than others. Looking for banks that offer 5% APY can help you build wealth faster and accomplish key financial goals.
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Writer
Marc Guberti is a business freelance writer who specializes in personal finance, digital marketing, and entrepreneurship. His award-winning book "Content Marketing Secrets" teaches readers how to create, promote and optimize content for growth and revenue. Marc also hosts the "Breakthrough Success Podcast," where listeners learn how to master content marketing and get more clients.
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