5 Banks Offering 5.0% APY or Higher Savings Accounts

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If a deadly pandemic, a turbulent economy and a confusing job market have taught us anything, it’s that an emergency fund is more important than ever. Having to cover unexpected expenses, a job loss or an extended illness is less stressful with an extra bit of cash on hand.

The best way to up your money game is to open an online high-yield savings account. Without the burden of maintaining brick and mortar branch services, online banks and credit unions are able to offer significantly higher annual percentage yields (APYs) than traditional institutions. With the average deposit rate sitting around 0.35%, per the Federal deposit Insurance Corporation, a 5% APY savings account will earn you over 14 times that.

There are a lot of appealing 5% APY or higher savings accounts available right now. Here are five great choices to consider — plus two checking account options with high APYs:

Maximize Your Savings Potential

Varo Savings Account — 5.00%

Consistently included among the best accounts for high APYs, a Varo Savings Account will help you reach your goals faster. With a starting APY of 3%, you can qualify to earn 5% if you meet two requirement in a month: Receive direct deposit(s) totaling $1,000 or more, and end the month with a positive balance in both your Varo Bank Account and Savings Account. To save more money quicker, take advantage of Varo’s “Save Your Pay” and “Save Your Change” tools that transfer a percentage of your pay and a round-up of transactions to your account.

Digital Federal Credit Union Primary Savings Account — 6.17%

DCU’s Primary Savings Account site touts no monthly fees or additional accounts to open, but you will need a $5.00 minimum opening deposit and balance to join and maintain credit union membership. You can earn a whopping 6.17% APY on balances up to $1,000. Membership is open to those who live, work, worship or attend school in a listed Massachusetts community, belong to an included organization or work for one of the many employers listed on the DFCU website.

Maximize Your Savings Potential

UFB Preferred Savings Account — 5.02%

There’s lots to love about the UFB Preferred Savings account, starting with a large APY. At 5.02%, it’s one of the largest APYs on the market, and you don’t need to link or hold a checking account at the same bank to qualify. There is also a high-yield money market account, but it requires a daily minimum balance of $5,000 to avoid a monthly fee

Centier Bank Connect Savings — 5.00%

A premium savings rate of up to 5% APY can be yours when you link Centier Connect savings and checking accounts. Centier advertises no fees or minimum balance required. However, there are minimum opening deposits ($50 for checking, $100 for savings), and the APY is determined by the number of qualified debit card transactions posted per statement cycle. You’ll need 50 or more to earn 5% APY and 18 to 49 to earn 1.50% APY. Otherwise, the rate is 0.05%.

Blue Federal Credit Union Accelerated Savings Account — 5.00%

The Blue Accelerated Savings account has no minimum balance to earn dividends. Accelerated Savings pays 5.00% APY on balances up to $1,000 and 2.08% on balances between $1,000 and $5,000. The rate eventually falls to the minimum 0.25%. Anyone can qualify for membership by donating $10 to the Blue Foundation — $5 of that counts as the required opening deposit to join the credit union.

Maximize Your Savings Potential

Consumers Credit Union Rewards Checking Account — 5.00%

The Consumers Credit Union Rewards Checking account can earn you 80 times the national average rate on balances up to $10,000 when you meet direct deposit and debit card and CCU Visa credit card transaction and purchase requirements. This account has no monthly maintenance fees, no minimum balance requirement and includes unlimited checks and access to 30,000 ATMs and 5,000 shared branches across the country. You can join Consumers Credit Union regardless of where you live or work with a $5 deposit.

Landmark Credit Union Premium Checking Account — 7.50%

Again, not a savings account, but if you’re ok with that, Landmark’s Premium Checking Account might fit your personal financial goals if you maintain a low bank balance. Premium Checking Accounts with e-statements and a minimum $250 direct deposit each month earn 7.50% APY on balances up to $500. Any account balance over $500 but less than $2,500 may earn an APY of between 7.50% and 0.11%. The rate for balances of $2,500 and over is 0.10%.

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When shopping for a new online savings account at a bank or credit union, always remember to read the fine print. APYs can change without notice, and there are often nit-picky balance limits and fees that aren’t advertised in bold. And don’t necessarily jump at the account offering the biggest APY. When it comes to savings, there may be an account offering less than 5% that suits your needs perfectly.

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