Woman researching 7% interest savings account options.

7% Interest Savings Account [2024 – Avoid These Scams]

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The average savings account at a U.S. bank pays only 0.28% in interest. But you can (and should) find an account that pays more.

You might have heard about a 7% interest savings account

Does such an account really exist?

Yes, but it comes with so many restrictions that you won’t actually earn that much money.

Luckily, there are other high-yield savings accounts with better terms.

Below, I’ll explain the 7% interest savings account in more detail and walk you through other options. 

What Bank Gives 7% Interest on a Savings Account?

There’s only one financial institution offering 7% interest on a savings account: Landmark Credit Union. 

In fact, Landmark Credit Union’s “Premium Checking” account advertises a 7.50% annual percentage yield (APY).

But…

(You knew there’d be a “but,” didn’t you?)

That Landmark Credit Union offer comes with some serious caveats:

  • The 7.50% APY only applies to balances of $500 or lower. Larger balances could earn as little as 0.11% APY, which is way below the national average of 0.28%.
  • To get the 7.50% APY, you need to receive electronic statements and use direct deposit.
  • To count as using direct deposit, you need to get at least $250 in deposits sent to your account each month.

Is Landmark Credit Union Legit? 

Landmark Credit Union’s Premium Checking account might underwhelm, but that doesn’t mean the institution isn’t legit, because it is!

Based in southern Wisconsin, Landmark Credit Union operates as a not-for-profit financial cooperative. That means it’s owned by its members, not its stockholders.

And with an A+ rating from the Better Business Bureau, Landmark Credit Union has a track record of treating customers fairly. 

So the organization isn’t run by a bunch of frauds. It’s just that they’ve just created an account with slightly misleading terms.

Is a 7% Interest Savings Account a Scam?

So what about that 7.50% APY account from Landmark Credit Union? Is it a scam?

I wouldn’t quite use the s-word, but the account certainly isn’t what it seems to be.

Remember, the 7.50% APY applies only to balances up to $500. If your balance rises above that, your rate could fall to the minimum of 0.11%, so you’ll hardly be earning anything at all.

And then there’s the other headache: To get the 7.50% APY, you need to receive at least $250 each month through direct deposit. 

But if your account’s receiving $250 each month, you’ll quickly reach the $500 threshold, right?

Exactly!

So I doubt opening the account would be worth it. After all, even if you managed to earn the 7.50% APY on $500, you’d still only earn an extra $37.50 per year. 

There are better ways to earn interest on your savings. 

A 7% interest saving account can help families reach their savings goals for their future.
A 7% interest Savings Account sounds appealing, but other options could help you meet your financial goals faster.
Source: Unsplash

Best High-Yield Savings Accounts

If you have your heart set on a 7% interest savings account, you’re going to be disappointed. An account like that simply doesn’t exist – or not yet, anyway.

But there are high-yield savings accounts where you can get a decent rate. Keep reading to learn which savings account will earn you the most money.

Here are some of the top choices to consider. 

1 – CIT Bank

APY: 4.85%

Minimum Deposit: $100 to open an account, $5,000 to get the 4.85% APY

CIT Bank is part of First Citizens Bank, a super reliable institution with over $218 billion in assets and 125 years of history. Plus, it’s FDIC insured. 

CIT Bank’s Platinum Savings Account is a great option – but only if you plan on depositing at least $5,000. 

Here’s why:

That 4.85% APY only applies if your balance is $5,000 or higher. Until your balance hits that threshold, you’ll only earn 0.25% APY, which is pretty low. 

So if you’re planning on depositing a smaller sum, you’re better off finding an account where you won’t need as much money to trigger the highest rate. 

2 – LendingClub Bank

APY: 4.25%

Minimum Deposit: $100

LendingClub is a “fintech marketplace bank,” meaning it operates largely in digital spaces. 

You won’t find physical branches, but don’t worry; Lending Club is totally legit. It’s had over 4 million members since its founding in 2007, and it has an excellent 4.7-star rating on Trustpilot.  

What I love about LendingClub’s High-Yield Savings Account is its simplicity. There are no pesky balance limits and no sneaky restrictions that could rob you of the higher rate. 

Of course, interest rates are liable to change, but as of now, the LendingClub account will earn you 4.25% APY no matter what your balance is. 

The LendingClub High-Yield Savings account also has some awesome features:

  • A free ATM card so you can easily withdraw cash
  • A convenient online application process
  • Mobile check deposits
  • FDIC insured

So it might not be a 7% interest savings account, but LendingClub’s High-Yield Savings Account is still a wonderful option. 

3 – UFB Direct

APY: 4.81% 

Minimum Deposit: None 

UFB Direct is a division of Axos Bank, one of the most prominent online banks in operation. And with an A+ rating from the Better Business Bureau, this is an organization you can trust.

The UFB Premier Savings Account has a refreshing lack of requirements. That 4.81% APY applies no matter how much money you have in your account. 

Even more surprising, there’s no minimum deposit and no service or maintenance fees!

Maximum flexibility, matched with an impressive APY? That’s about as much as you can ask for with a savings account. 

Other perks include:

  • Online banking
  • Mobile check deposits
  • Fraud protection
  • Simple online application
  • Free ATM card
  • FDIC insured

So the UFB Premier Savings Account isn’t just a high-yield account. It also gives you easy access to your savings!

4 – Bask Bank

APY: 4.75%

Minimum Deposit: None

Bask Bank is a subsidiary of Texas Capital Bank. It began offering the country’s first online-only savings accounts all the way back in 1999. So if you’re looking for an institution with experience in online banking, you literally couldn’t do any better!

With some accounts, you need to trade flexibility in exchange for higher interest rates. Fortunately, this isn’t the case with the savings account from Bask Bank. 

There’s no minimum deposit, no annoying restrictions, and it’s FDIC insured. That means you can enjoy that 4.75% APY without having to stress about your balance. 

The only “rule” to consider is that you need to make some sort of deposit within the first 15 business days of opening the account. Otherwise, your account could be closed. 

There is one minor drawback to a Bask Bank savings account: You won’t get an ATM card. But that’s actually pretty typical for a savings account, and it could even help you resist the temptation to spend your money. 

After all, it’s called “savings” for a reason!

5 – First Foundation Bank

APY: 4.85%

Minimum Deposit: $1,000

First Foundation Bank is a physical bank that also offers digital accounts. 

The online savings account from First Foundation Bank has a lot to like – and a couple of major drawbacks.

Let’s get the drawbacks out of the way first. 

Your initial deposit needs to be at least $1,000. If you’re planning to deposit that much anyway, it’s no problem at all. But if you were hoping to start with a smaller balance, you’ll have to choose one of the more flexible accounts on this list. 

The second drawback is that First Foundation Bank is not FDIC insured. This means if something were to happen with the bank (and your money), then no federal agency would be there to cover the losses. 

Now let’s focus on the positives, starting with the 4.85% APY. That’s really high, and it applies no matter how much money you have in your account. 

Another benefit is that First Foundation Bank’s online savings account leaves your money in a super accessible place. In a lot of ways, it acts almost like a checking account, allowing you to:

  • Pay bills online
  • Deposit checks with a mobile device
  • Send money with Zelle

To be able to do all that while earning 4.85% APY is pretty amazing!

Thorough market research is necessary when looking to sign up for a 7% interest savings account.
Make sure you do your research before choosing a high-yield savings account.
Source: Unsplash

Tips for Choosing a High-Yield Savings Account

Not all high-yield savings accounts are the same. In fact, there are all sorts of variables, some related to how much you’ll earn, and others that affect how you can manage your finances.

Here are some factors to consider as you choose your high-yield savings account.

  • Interest rates. This is probably the most important factor of all, as it determines how much you’ll earn on your savings. The higher the annual percentage yield (APY), the better. 
  • Minimum deposits. Many accounts require a minimum deposit to open an account. So consider how much you’d like to put in the bank to start with, then look for an account that will accept your initial deposit. 
  • Fees. Some banks charge a monthly fee, but you can often get it waived by maintaining a certain minimum balance. There could also be ATM fees, transaction fees, and a charge for closing your account. Take a close look at the fine print so you know what to expect. 
  • FDIC Insurance. Saving accounts from most reputable banks are insured by the Federal Deposit Insurance Corporation (FDIC). This means the government will pay you back if you lose up to $250,000. To be sure your money stays safe, you should confirm the account is FDIC-insured before signing off on it.
  • Notice periods. Some accounts will require you to notify the bank that you’re planning on withdrawing funds. Although, this seems to be more common in the U.K. than it is in the U.S.
  • Access to funds. Lots of savings accounts make it easy to access your funds – with some even giving out ATM cards and letting you pay bills online. But not all savings accounts provide that type of access, so make sure you double-check before opening the account. 

Commonly Asked Questions About 7% Interest Savings Account 

What is a High-Yield Savings Account?

A high-yield savings account is a bank account with a higher-than-average interest rate. This means you’ll have a higher earnings potential on the money you put in the account. Many of these accounts are offered by online-only banks like Bask Bank and UFB Direct.

What Does 7% Interest Mean?

With a savings account, 7% interest means the bank pays you 7% of the account’s balance each month. But be careful. The only 7% interest savings account in the United States right now is offered by Landmark Credit Union, and it comes with serious restrictions.  

7% Interest Savings Account USA?

The only 7% interest savings account in the USA right now is offered by Landmark Credit Union – but there’s a catch. Several catches, actually. You can only earn 7.50% APY on balances up to $500, and that’s only if the account receives at least $250 in direct deposits each month.

Which Bank Gives 6% Interest in Savings Account?

There aren’t currently any American banks offering 6% interest on savings accounts. Landmark Credit Union offers a 7% interest savings account, but it comes with limitations. I’d go with another high-yield account. CIT Bank, UFB Direct, and Bask Bank all offer accounts with over 4.50% APY. 

Are There Any Savings Accounts that Pay 5% Interest?

The 7% interest savings account from Landmark Credit Union pays over 5% interest, but the account’s restrictions limit your earning potential. Better options include CIT Bank, LendingClub Bank, and UFB Direct, which all offer interest rates just below 5%. 

What is the Highest Interest on a Savings Account?

The highest interest rate on a savings account is 7.50% APY. It’s offered by Landmark Credit Union. But watch out – serious restrictions will limit how much you can actually earn. Other high-yield accounts offer 4.85% APY, including accounts by CIT Bank and First Foundation Bank.