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- A 7% interest savings account is hard to come by.
- The only institution we found offering such a high rate is Landmark Credit Union.
- However, the account has limitations and is only open to Wisconsin and Illinois residents.
The average interest rate on a savings account is 0.46%% APY (Annual Percentage Yield), but many institutions are paying significantly higher rates.
Is a 7% savings account worth it? Learn more about how a 7% interest rate savings account works and where to find one.
Understanding 7% interest savings accounts
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. The more often interest is compounded, the more you'll earn in the long run. It's common for banks to compound interest daily on savings accounts 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've read the fine print.
How to qualify for 7% interest savings accounts
Requirements vary by financial institution. While some banks and credit unions require a balance of just $1 or $5 to start earning interest, others may require $10,000 or more to earn the highest available APY.
In other cases, you may need to set up recurring direct deposits to earn the bank's top APY on your savings balance.
Top banks offering 7% interest savings accounts
There are no national or community banks offering 7% interest on a savings account right now.
Landmark Credit Union, which serves residents in select counties in Wisconsin and Illinois, pays 7.50% APY on its Landmark Credit Union 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% annual interest rate. Direct deposits must come from an employer, payroll provider, pension or government benefits provider, or a gig economy payer such as DoorDash.
Importantly, you'll earn 7.50% only 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 may earn 0.06% to 7.50% APY.
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.
Comparing 7% interest savings accounts to other savings options
High-yield savings accounts
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.
- Western Alliance Bank High Yield Savings Account: 5.20% APY
- UFB Portfolio Savings: 5.15% APY
- Valley Direct High Yield Savings Account: 4.75% APY.
Certificates of deposit
If you want to set aside money for a mid-term or long-term savings goal, consider opening a CD.
CD rates are comparable to high-yield savings rates right now, but provide the opportunity to lock in a high rate for your entire term length. Savings account rates are variable.
Benefits of 7% interest savings accounts
A 7% interest savings account would offer earning potential that rivals stock investments — without the risk. A $10,000 deposit with daily compounding would earn around $725 in interest over 12 months.
Potential drawbacks of 7% interest savings accounts
If you manage to find a savings account paying 7% interest, there will likely be fine print — whether that's high deposit requirements or a tiered earning structure that offers a lower rate on higher balances.
7% APY savings accounts FAQs
When an account pays 7% APY, you'll earn 7% on your balance over a year.
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.
Any account that is insured by the Federal Deposit Insurance Corporation or National Credit Union Administration is a safe place to keep your savings.
