Best 5% Interest Savings Accounts

• No monthly fees or minimum balance requirements
• $5 deposit required
• Mobile check deposits via app 
• 80,000 fee-free ATMs nationwide
• Highest APY is limited to balances up to $1,000
  

While the DCU Primary Savings account’s 6.17% APY tops our list of high-yield savings accounts, the APY only applies to savings account balances up to $1,000. Beyond that, balances earn a 0.16% APY, which is less than the national average of 0.42%. We like that DCU offers mobile check deposits and has plenty of fee-free ATMs, but it doesn’t offer many other perks or frills beyond that. 

The credit union has 24 branches in New Hampshire and Massachusetts, but serves members nationwide through a network of more than 5,900 co-op shared branches. Membership is available to employees or members of partner organizations or people who live in specific communities in Massachusetts. Visit its website for eligibility requirements.

Aside from the Primary Savings account, DCU also offers several other savings accounts that may have different APYs and features. These include an Advantage Savings account and a Member Described Savings account.

• No monthly fees, minimum deposit or balance requirements
• Mobile check deposits via app 
• No service or transaction fees
• Limit of six withdrawals per statement cycle
• Live customer support available 24/7

Newtek Bank is an online-only subsidiary of Newtek One, a financial services business company. The 5.15% APY applies to all balance levels, but you’ll be limited to six withdrawals per statement cycle. Also, the account doesn’t come with an ATM card. You can open as many personal banking accounts as needed, all of which can be managed through an online banking account or mobile app. So if you don’t want to manage your account online or need to make more than six withdrawals, it’s best to consider other options.

• No monthly fees, minimum deposit or balance requirements
• Premier Money Market account also earns the same high-yield APY
• Mobile check deposits via mobile app 
• Expanded insurance protection available up to $150 million
• ATM card available

UFB Premier Savings has a highly competitive APY that applies to all balances — unlike some banks highlighted above that reserve top APYs for specific balance tiers.

In addition to great rates, we like that UFB Direct’s savings account comes with a free ATM card and unlimited free transfers between accounts. However, there’s a limit of six withdrawals a month and after that, there’s a $10 excessive transaction fee. That doesn’t apply to ATM cards, though. As an online-only bank, UFB Direct doesn’t offer physical branches, but you can handle deposits and transfers through its mobile banking app, online and SMS mobile banking — which can come in handy if you don’t have access to Wi-Fi or mobile data, but need to manage your account.

• No monthly fees
• Three savings account options available
• $5,000 balance required to earn the highest APY with the Platinum Savings account
• Rebates up to $30 per month in out-of-network ATM fees

CIT Bank is the online division of First Citizens Bank, and may make sense for you if you have $5,000 or more ready to deposit. It offers three types of savings accounts, but its highest yielding one is its Platinum Savings account. There’s no monthly maintenance fee, but it does require a $100 minimum deposit to open an account. You’ll earn 5.05% APY on balances of $5,000 or more — but balances below this amount earn a paltry 0.25% APY. You can deposit checks and transfer money via its mobile app, and you can receive up to $30 per month in reimbursements for out-of-network ATM fees.

• No monthly  fees, minimum deposit or balance requirements
• $5 monthly fee for paper statements
• Full suite of deposit accounts available
• Mobile check deposits via app, plus text alerts 
• Extended customer service hours

TAB Bank, an online-only bank, recently increased its already competitive high-yield savings account APY to 5.02%. There’s no minimum balance or deposit required and you’ll only need 1 cent in your account to start earning interest. 

We also like that you can receive mobile alerts and text messages. For example, you can receive alerts about withdrawals when your account falls below a certain limit. Another benefit is that TAB has extended customer service hours — Monday through Friday from 6 a.m. to 7 p.m. MST and Saturdays from 9 a.m. to 3 p.m. MST, excluding federal holidays.

• No monthly fees, minimum deposit or balance requirements
• Two savings account options available — Miles Savings and Interest Savings
• Doesn’t offer ATM or debit cards with savings account
• Mobile check deposits via app

Bask Bank, an online subsidiary of Texas Capital Bank, offers two different types of savings accounts. Its Interest Savings Account offers a 5% APY on all balances,  with no monthly fees or minimum deposit requirements. But if you’re looking to open a joint account, look elsewhere. Bask Bank doesn’t offer joint savings account options.

This bank also has a Mileage Savings Account that you might explore if you like to earn American Airline miles that you can redeem for free flights. Instead of earning a cash APY on your balance, you’ll earn 2.5 AAdvantage miles for every dollar you save annually. You can open one savings account of each type.

• No monthly fees 
• Monitors and adjusts APYs based on market conditions to remain competitive
• Doesn’t offer ATM or debit cards with savings account 
• Banking app supports mobile check deposits

Formerly Comenity Direct, Bread Financial offers certificates of deposit and a high-yield savings account through its consumer banking arm, Bread Savings. Bread Savings only requires a small minimum deposit in contrast to other options that have a zero initial deposit requirement. However, there’s a $100 minimum to open an account with a 5.00% APY. There are no monthly maintenance fees and you’re allowed unlimited free deposits via mobile check, ACH transfer and wire transfer. Outgoing wire transfers cost $25, official check requests are $15, and paper statements are $5 per statement.

• No monthly fees, minimum balance or balance requirements
• Money can only be accessed with a linked account through ACH transfers
• No excess withdrawal fees
• Deposits and withdrawals only permitted via external transfers

DollarSavingsDirect is an online banking arm of Emigrant Bank that offers a savings account paying highly competitive yields with no minimum initial deposit required. There’s no minimum balance required to avoid monthly fees. DollarSavingsDirect also doesn’t charge an excessive withdrawal fee as some banks do when you exceed six transactions per month, giving you more flexibility when accessing your money.

• No monthly fees, minimum deposit or balance requirements
• Mobile check deposits via app
• Withdrawal transactions limited to seven per month

Laurel Road, the digital arm of KeyBank, offers an online savings account with no minimum deposit or balance requirements to earn its competitive 5.00% APY. Like most online banks, Laurel Road doesn’t accept cash deposits, so you’ll need to transfer money electronically to fund your account.

Laurel Road began as a student loan originator in 2013. As of 2019, it was acquired by KeyBank and now offers checking, savings and loan products primarily geared toward healthcare and business professionals nationwide. Its digital platform merges technology with banking services to offer a high-yield rate that applies to the entire balance, one that’s FDIC-insured for up to $250,000.

• No monthly fees or balance requirements
• $500 minimum deposit required to open an account
• $1 account balance needed to earn 5.00% APY

My Banking Direct is an online service of Flagstar Bank, which is owned by parent company New York Community Bancorp. It recently boosted its high-yield savings account rate to 5.00% APY. This online savings account has no maintenance fees, no minimum balance requirements and offers interest on all balances above $1. You’ll need $500 to open an account however, so this bank may not make sense if you’re still working up to this number.

My Banking Direct doesn’t advertise information about wire transfer fees on its website or in its official account disclosures.

• No monthly fees, minimum deposit or balance requirements
• Mobile check deposits via app
• Roundup tools to automate savings 
• Highest APY available limited to balances up to $5,000
• Minimum of $1,000 in monthly direct deposits required to earn APY

Varo Bank has a tiered savings rate that benefits lower balances. You’ll earn 5.00% APY on balances up to $5,000 and 3.00% APY on balances above that. But there are a few catches.

You’ll start off earning 3.00% APY. To qualify for 5.00% APY on all balances totaling $5,000 or less, you’ll need to have $1,000 in direct deposits coming into your account every month, and you must end each month with a positive balance in both your Varo Bank (checking) and Savings account. While Varo presents an appealing APY for those with lower balances, once your account balance exceeds $5,000, you’ll drop back to the lower APY.

However, we like that Varo offers more wiggle room to grow your stash with automatic round-ups to move your change from deposits and transactions to your savings.