7% Interest Savings Account Rates: 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% Interest 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.