7% Interest Rate Savings Accounts in April 2024 (2024)

Vault’s Viewpoint on 7% Interest Savings Accounts

  • If you can find a savings account with a 7% interest rate, you’ll earn about 15X more than the national savings rate.
  • Currently, there are no savings accounts on the market that offer a 7% APY.
  • It’s much more common to find a savings rate of 4% to 5% right now.

Overview of 7% APY Savings Accounts

Usually, you can find higher rates with credit unions or online banks. Credit unions can afford to offer higher savings rates since they are not-for-profit institutions like banks. Online-only banks do aim to earn a profit, but because they don’t have expensive brick-and-mortar branch locations to run, they can often afford to give very enticing APYs on savings deposits and other products.

Unfortunately—as briefly noted earlier—there aren’t any savings accounts currently offering a 7% interest rate. However, some financial institutions are offering a 7% or greater APY on other products.

OnPath Federal Credit Union customers can currently access a 7% APY on average daily checking account balances up to $10,000. Landmark Premium Credit Union is another credit union offering a high rate on checking deposits. You can earn 7.50% APY on deposits of up to $500.

Pros of a 7% Interest Savings Account

If you can secure a 7% interest savings account, you stand to earn a lot of money for very little effort.

  • High-interest earnings can help savings grow
  • No risk like with investing
  • Most savings accounts are protected by FDIC or NCUA insurance

Cons of a 7% Interest Savings Account

Unfortunately, finding and maintaining a 7% APY simply by opening a savings account is easier said than done. Here are some disadvantages commonly associated with 7% interest savings accounts.

  • Difficult to find
  • No guarantee interest rate will remain that high
  • May need to meet certain minimum balance requirements

How Much Can You Earn With a 7% Interest CD?

One way to find higher earnings rates can be with a certificate of deposit (CD). While a CD is not as flexible as a savings account, it also offers a guaranteed amount of interest on your deposit. In many cases, CD rates are higher than savings account rates.

With a CD, you deposit a certain amount of money for a set amount of time (known as the CD term). You typically can’t remove your funds before the term ends without running into a penalty fee—although there are some exceptions to this rule thanks to no-penalty CDs. In exchange for that rigidity, you earn a set amount of interest. With a savings account, APYs can go up or down whenever the bank chooses, meaning what you earn is unpredictable.

At the moment, there are no 7% CDs available, but you can find many offering high APYs. Let’s say you were to find a 7% CD—how much money would you earn? If you open a CD with a $10,000 deposit and a two-year term, you would earn $1,449 in interest. You wouldn’t be able to access your funds for two years, which may be challenging, but it’s easy to see how a high APY can lead to strong earnings that make that lack of fluidity worthwhile.

How to Open a Savings Account With 7% Interest

Opening a new savings account can sound intimidating, but the process is actually quite straightforward and speedy. If you’re planning to open a new savings account, here are the steps you will generally follow.

  1. Shop around. When choosing a new savings account, spend some time getting to know your options. Investigate the different rates, fees and products a handful of banks and credit unions offer.
  2. Be prepared. All banks have a unique application process, but most require you to provide basic personal and identifying information and documentation. To streamline the application, have a government-issued ID, proof of address and your Social Security number at the ready.
  3. Fill out the application. Next, you will complete the application and wait for approval. Most banks will give you an answer fairly quickly and possibly even immediately or that same day.
  4. Make the initial deposit. After you receive approval, you’ll need to make an initial deposit. Some banks have minimum opening deposit requirements, so confirm you can deposit that amount before opening your account. You may also need to maintain a certain ongoing balance or risk running into fees.

Alternatives to a Savings Account With 7% Interest

If you can’t find a savings account offering the 7% interest rate you’re looking for, other financial products can still help you earn a decent amount of interest.

High-Yield Checking Account

High-yield checking accounts work the same way as a traditional checking account but tend to come with much higher interest rates, getting you closer to earning a 7% APY. Typically, you don’t earn much—if any—interest with traditional checking accounts, so finding a high-yield checking account that works for you can be a real win. You will most commonly find high-yield checking accounts at online-only banks or credit unions.

High-Yield Savings Accounts

Remember: You’re more likely to find the most competitive interest rates with high-yield savings accounts, not traditional ones. If you are comfortable giving up access to in-person banking services, you may be able to find the rates you’re looking for at an online-only bank.

Money Market Accounts

A money market account is a great way to earn interest on savings you want to keep accessible. You can find money market accounts at banks and credit unions, which work like a cross between savings and checking accounts. You’ll get check-writing abilities and debit card access like you would with a checking account, but with the high APY of a savings account.

Frequently Asked Questions

How Can I Earn 7% Interest on My Money?

There are a few different ways you can earn a 7% interest rate on your money. It’s possible to earn that much interest with investing, but there are no guarantees. Finding a high-yield savings account, CD or money market account that offers a 7% interest rate can be a more secure way of earning that rate.

Which Bank Gives 7% Interest Rate?

Currently, no banks are offering 7% interest on savings accounts, but some do offer a 7% APY on other products. For example, OnPath Federal Credit Union currently offers a 7% APY on average daily checking account balances up to and under $10,000. Landmark Premium Credit Union is also offering a 7.50% APY on checking deposits up to $500.

Can You Get 7% on a CD?

It can be possible to earn a 7% interest rate on a (CD), but to find that high of an interest rate, you will need to shop around with a few different banks and credit unions. To earn a 7% interest rate, you may need to commit to a large CD amount or a long CD term.

7% Interest Rate Savings Accounts in April 2024 (2024)

FAQs

How high will savings interest rates go in 2024? ›

However, the Federal Reserve maintains their projection that there will be three interest rate cuts in 2024, reducing the federal funds rate to a range of 4.5% to 4.75%. Our new comparison tool — in partnership with Bankrate — will help you find the best rates available now.

Where can I get 7% interest on my money? ›

7% Interest Savings Accounts: What You Need To Know
  • As of May 2024, no banks are offering 7% interest rates on savings accounts.
  • Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

How much will $20,000 make in a high yield savings account? ›

By keeping your extra savings in a high-yield savings account, you may be able to earn more interest. If you keep $20,000 in a high-yield savings account for one year at 4.50% APY, you can make $900 from interest. The longer you allow your savings to sit in your account, the more interest you'll earn.

How much will $100,000 make in a high yield savings account? ›

At a 4.25% annual interest rate, your $100,000 deposit would earn a total of $4,250 in interest over the course of a year if interest compounds annually. Annual total: $104,250.

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

What is the prediction for high interest savings account rates? ›

Heading into 2024, the Federal Reserve decided to maintain the target range for the federal funds rate at 5.25% to 5.50% and indicated that it may lower rates in the near future. Despite this prediction, you could still find high-yield savings accounts offering interest rates as high as 5.50% APY by the end of 2023.

Where to put $10,000 for best interest? ›

The best way to invest 10K in individual stocks, ETFs, mutual and index funds, and stocks and shares ISAs. You can also use a robo-advisor to invest in stocks. How to invest 10k for the short term? You can invest the 100k in a high-interest savings account or a cash ISA for short-term goals.

Which bank gives 8% interest? ›

Top 20 Scheduled Banks offering Best FD Rates
BanksHighest FD rate (% p.a.)Additional interest rate for senior citizens (% p.a.)
RBL Bank8.000.50
AU Small Finance Bank8.000.50
Induslnd Bank7.990.26-0.50
IDFC First Bank7.900.50
16 more rows

Can you get 7% on a CD? ›

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

Do millionaires use high-yield savings accounts? ›

Millionaires Like High-Yield Savings, but Not as Much as Other Accounts. Usually offering significantly more interest than a traditional savings account, high-yield savings accounts have blown up in popularity among everyone, including millionaires.

Can you ever lose your money with high-yield savings account? ›

You can't lose your money because, just like your regular checking and savings accounts, the money is insured by the Federal Deposit Insurance Corporation up to $250,000.

What is the downside of a high-yield savings account? ›

Some disadvantages of a high-yield savings account include few withdrawal options, limitations on how many monthly withdrawals you can make, and no access to a branch network if you need it.

Can I live off the interest of $100,000? ›

“With a nest egg of $100,000, that would only cover two years of expenses without considering any additional income sources like Social Security,” Ross explained. “So, while it's not impossible, it would likely require a very frugal lifestyle and additional income streams to be comfortable.”

Should I keep 100k in the bank? ›

It's important to have cash reserves available, but $100,000 may be overdoing it. It's important to have money available in your savings account to cover unforeseen expenses. Plus, you never know when you might lose your job or see your hours (and income) get cut, so having cash reserves at the ready is important.

What happens if I put $10,000 in a high-yield savings account? ›

How much interest can you earn on $10,000? In a savings account earning 0.01%, your balance after a year would be $10,001. Put that $10,000 in a high-yield savings account that earns 5% APY for the same amount of time, and you'll earn about $500.

What is the interest rate forecast for 2024 2025? ›

MBA: Rates Will Decline to 6.4% In its April Mortgage Finance Forecast, the Mortgage Bankers Association predicts that mortgage rates will fall from 6.8% in the first quarter of 2024 to 6.4% by the fourth quarter. The industry group expects rates will fall below the 6% threshold in the fourth quarter of 2025.

What is the interest rate forecast for the next 5 years? ›

Trading Economics offers a more optimistic outlook, predicting a rise to 5% in 2023 before falling to 4.25% in 2024 and 3.25% in 2025. This forecast is supported by Morningstar's analysis, which projects rates between 3.75% and 4%.

Will CD rates go up in 2025? ›

CD rates should remain fairly attractive in 2025

Just as the Fed raised interest rates when inflation soared, the central bank is expected to start cutting interest rates now that inflation has cooled.

What is the rate cut in May 2024? ›

The Federal Reserve announced at its May 2024 Federal Open Market Committee (FOMC) meeting that it would maintain the overnight federal funds rate at the current range of 5.25% to 5.5%.

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