Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.
If there's one upside of a rising-interest-rate environment, it's earning a higher return on that cash sitting in a savings account.
Some high-yield savings accounts are now offering around a 5% annual percentage yield (APY) — a significant increase from the pandemic-era rates that once hovered around just 1% and a high we haven't seen since the 1990s. (And we still have the rest of the year to see how savings rates play out in accordance with the forthcoming Fed rate hikes.)
With a 5% APY being one of the highest yields we're seeing in the market right now, CNBC Select researched just what FDIC-insured savings accounts are offering an APY of 5% — or close to it — and the minimum balances required to earn that decently attractive return. If your sole focus is to maximize your savings, these are the accounts to consider. (Seeour methodologybelow for more information on how we created this list.)
Best 5% interest savings accounts
- Best overall: Western Alliance Bank Savings Account
- Best for earning a high APY: Newtek Bank Personal High Yield Savings
- Best for no fees: Bask Interest Savings Account
- Best for easy access to your cash: Panacea High-Yield Savings Account
- Best for ATM card: UFB Premier Savings (previously known as UFB Preferred Savings)
- Best if you want extra help saving: Varo Savings Account
- Best for checking/savings combo: Laurel Road High Yield Savings®
- Best for low deposits: Mango
- Best for money market account: CFG Bank High Yield Money Market Account
Compare offers to find the best savings account
Best overall
Western Alliance Bank Savings Account
Western Alliance Bank is a Member FDIC.
Annual Percentage Yield (APY)
5.05% APY
Minimum balance
$1 minimum deposit
Monthly fee
None
Maximum transactions
Up to 6 transactions each month
Excessive transactions fee
The bank may charge fees for non-sufficient funds
Overdraft fee
The bank may charge fees for overdrafts
Offer checking account?
No
Offer ATM card?
No
See our methodology, terms apply.
Pros
- Strong APY
- Low minimum deposit required
- No monthly fees
Cons
- Bank may charge non-sufficient funds, overdraft fees
- Doesn't offer checking account or ATM access
- Accounts are opened and managed on SaveBetter.com platform
The Western Alliance Bank Savings Account offers a 5.05% APY and requires just a $1 minimum deposit to open an account. There is no cap for earning the 5.05% APY, making this high-yield savings account the best overall 5% APY choice.
Western Alliance Bank savings products are powered by SaveBetter, which means that savers' accounts are opened and managed on the SaveBetter.com platform.
Best for no fees
Bask Interest Savings Account
Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC.
Annual Percentage Yield (APY)
4.75% APY
Minimum balance
None
Monthly fee
None
Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
No
Offer ATM card?
No
See our methodology, terms apply.
Pros
- Strong APY
- No minimum balance or deposit
- No monthly fees
- Bask Mileage Savings Account also available: Earn 2 American Airlines AAdvantage® miles for every $1 saved annually
Cons
- No option to add a checking account
- No ATM access
TheBask Interest Savings Accountoffers a 4.75% APY to all savings account holders, with zero monthly fees and no minimum requirements, making it the best choice for no fees. Just note that the bank may close your account if it remains unfunded for 15 business days.
Frequent travelers should consider the Bask Mileage Savings Account where they earn American Airlines AAdvantage®miles back instead: Earn 2.5 miles for every $1 saved annually. Savers can then use these miles for flights on American Airlines or any of its 20+ partner airlines.
Bask Bank is a division of Texas Capital Bank, but operates completely online.
Best for earning a high APY
Newtek Bank Personal High Yield Savings
Newtek Bank is a Member FDIC.
Annual Percentage Yield (APY)
5.00% APY
Minimum balance
$0.01 to earn interest
Monthly fee
None
Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle; transaction amount limits apply; withdrawals from your account can only be transferred to the original external funding source
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
Only a business checking account
Offer ATM card?
Yes, if have a Newtek checking account
See our methodology, terms apply.
Pros
- Strong APY
- No minimum deposit and low minimum balance
- No monthly fees
- Offers business checking account and ATM access
Cons
- Transfer limit
- Only offers a business checking account
- Mobile deposits on app only available for business accounts
With the Newtek Bank Personal High Yield Savings, account holders earn a respectable 5.00% APY with a minimum balance requirement of just $0.01 to earn interest. There's no minimum deposit to open an account and no cap on how much interest you can earn with this APY.
Newtek Bank is formerly National Bank of New York City (NBNYC); it has recently been acquired and rebranded as a part of NewtekOne.
Best for easy access to your cash
Panacea High-Yield Savings Account
Panacea Financial is a Division of Primis, a Member FDIC.
Annual Percentage Yield (APY)
4.80%APY
Minimum balance
$25 minimum deposit
Monthly fee
None
Maximum transactions
There are no restrictions on number of withdrawals per month from savings account
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
Yes
Offer ATM card?
Yes, if have a Panacea checking account
See our methodology, terms apply.
Pros
- Strong APY
- No minimum balance
- Minimum deposit is low
- No monthly fees
- Unlimited transactions
- No overdraft fee
- Option to add a checking account with ATM access
Cons
- Minimum deposit required to open account
- No physical branch locations
Anyone can open a Panacea High-Yield Savings Account and earn 4.80% APY with a minimum $25 deposit. There are zero monthly fees and no minimum balance requirement, but we especially like this account for being accessible: Account holders can make unlimited withdrawals each month from their savings.
Best for ATM card
UFB Premier Savings
UFB Premier Savings is offered by Axos Bank, a Member FDIC.
Annual Percentage Yield (APY)
Earn up to 4.81%APY
Minimum balance
None
Monthly fee
None
Maximum transactions
No max number of transactions; max transfer amounts may apply
Excessive transactions fee
None
Overdraft fee
Overdraft fees may be charged, according to the terms, but a specific amount is not specified; overdraft protection service available
Offer checking account?
No
Offer ATM card?
Yes
See our methodology, terms apply.
Pros
- Strong APY
- No minimum balance
- No monthly fees
- Free ATM card
- Free transfers between direct deposit accounts
- Online and SMS banking available
- Mobile check deposits
Cons
- No option to add a checking account
- No physical branch locations
- Potential overdraft fee, though overdraft protection is offered
The UFB Premier Savings account offers a high 4.81% interest rate with no cap. Though UFB Direct notes that this is a tiered savings rate, at the time of writing all balance tiers earn this sameAPY.
This account has no minimum deposit requirement so savers can deposit $1 or $100 and earn the same high APY. For those savers on the go, UFB stands out for offering users a free ATM card. UFB Direct is the online division of Axos Bank.
If you're an existing UFB customer, note that the bank sometimes changes the name of its savings accounts when it raises the APY, and it does not automatically enroll existing customers into the new account. Anytime UFB increases the APY on an account, customers should contact the bank to make sure they're enrolled in the account offering the best APY.
Best if you want extra help saving
Varo Savings Account
Bank Account Services are provided by Varo Bank, N.A., Member FDIC.
Annual Percentage Yield (APY)
Begin earning 3.00% APY and qualify to earn 5.00% APY if meet requirements
Minimum balance
$0.01 to earn interest
Monthly fee
None
Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
Yes
Offer ATM card?
Yes, if have a Varo Bank Account
See our methodology, terms apply.
Pros
- Strong APY and option to earn even higher
- No minimum deposit and low minimum balance
- No monthly fees
- Option to add a checking account with ATM access
- Offers 2 programs to help automate your savings
Cons
- Have to meet requirements to earn higher APY
- Cash deposits are only available through third-party services, which charge a fee
Varo Savings Account users can qualify to earn 5% APY on balances up to $5,000 by meeting two requirements:
- Receiving $1,000 or more in direct deposits per month
- Ending the month with a positive balance in both the Varo Bank Account and Varo Savings Account
For savers that max their balance to $5,000, that's $250 in interest earnings in a year.
Varo savers earn 3% APY on any additional balance over $5,000 (which is still pretty decent) and there is no minimum balance required to earn this standard 3% APY. Varo Savings is a part of Varo Bank, which is an all-mobile national bank.
For those who want extra help saving, the online bank offers two programs that automatically transfer money from your Varo bank account to your savings account: Save Your Pay, which transfers a percentage of your paycheck into your savings, and Save Your Change, which rounds up your checking account transactions to the nearest dollar and transfers the difference to your savings.
Best for checking/savings combo
Laurel Road High Yield Savings®
Laurel Road High Yield Savings® is offered by KeyBank N.A., a Member FDIC.
Annual Percentage Yield (APY)
4.80%APY
Minimum balance
None
Monthly fee
None
Maximum transactions
Up to 7 free withdrawals or transfers per statement cycle
Excessive transactions fee
$15 for each transfer or payment over the limit
Overdraft fee
$20 per overdraft item when the end of day overdraft balance is greater than $20
Offer checking account?
Yes
Offer ATM card?
Yes, if have a Laurel Road checking account
See our methodology, terms apply.
Pros
- Strong APY
- No minimum balance
- No monthly fees
- Option to add a checking account with ATM access
- Known for student loan refinancing
Cons
- Excessive transactions fee
- Overdraft fee
- No physical branch locations
Though Laurel Road is widely known for its student loan refinancing services, the digital banking arm of KeyBank recently launched the Laurel Road High Yield Savings. This savings account offers a competitive interest rate at 4.80% APY, with no minimums required and zero monthly fees.
Laurel Road also offers the Laurel Road Loyalty CheckingSM — a rewards checking account. Account holders earn a$20 cash rewardfor every month they make qualifying ACH direct deposits during their first 12 months, and $10 for every month after that, for as long as their account is open. Plus, Laurel Road offers the chance to earn a $200 welcome bonus with this checking account.
Best for low deposits
Mango Prepaid Mastercard® savings feature
Metropolitan Commercial Bank is a Member FDIC.
Annual Percentage Yield (APY)
6.00% APY on up to $2,500 if make signature purchases of $1,500 or more and have a minimum balance of $25 at the end of the month (after, 0.10% APY for balances over $2,500; $5,000 cap)
Minimum balance
$25
Monthly fee
None
Maximum transactions
Up to 6 transfers out each month and transfer amounts to savings apply
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
No
Offer ATM card?
Yes, offers prepaid debit card
See our methodology, terms apply.
Pros
- Strong APY
- Low minimum balance
- No monthly fees
- Offers prepaid debit card with ATM access
Cons
- Savings feature only available to Mango cardholders
- Cap on earning high APY
- High APY has requirements
- Low APY for balances over $2,500
- No option to add a checking account
Cardholders of the Mango Prepaid Mastercard® (issued byMetropolitan Commercial Bank) have access to a savings feature where they can earn up to 6.00% APY on balances up to $2,500 by meeting two requirements:
- Make a minimum deposit of $25 and have that minimum balance at the end of the month
- Make signature purchases of $1,500 or more on the Mango Prepaid Mastercard each month
For savers that max their balance to $2,500, that's $150 in interest earnings in a year — which is why we ranked this account the best for making a small deposit (up to $2,500). The APY thereafter is a low 0.10% over $2,500 — which at that point we'd recommend shifting other savings beyond the $2,500 to a high-yielding bank account.
Best for money market account
CFG Bank High Yield Money Market Account
CFG Bank is a Member FDIC.
Annual Percentage Yield (APY)
5.07% APY
Minimum balance
$1,000 minimum deposit
Monthly fee
$10 monthly service fee, with option to waive if account maintains minimum $1,000 balance
Maximum transactions
Up to 6 transactions each month; $5,000 daily external transfer limit; external transfers may not exceed $30,000 in a 30-day rolling period; for first 30 days after initial funding, all deposits are placed on hold and unavailable for withdrawal
Excessive transactions fee
$5 per item
Overdraft fee
None
Offer checks?
No
Offer debit card?
No
See our methodology, terms apply.
Pros
- Strong APY
- Option to waive monthly fee
Cons
- $1,000 minimum deposit required
- $10 monthly fee
- Rules around transaction limits
- No ATM card or check-writing privileges
Though CFG Bank High Yield Money Market Account has "money market" in its name, it doesn't offer any of the typical bells and whistles you find with a money market account, such as check-writing privileges, debit cards and ATM access; it instead functions like a savings account.
There is a $1,000 minimum deposit required to open CFG Bank High Yield Account and to earn the 5.07% APY. Though this is a higher minimum than others on this list, it essentially helps the saver at the end of the day; the higher one's balance, the higher their interest earnings will be.
There is no cap for earning the 5.07% APY, which means savers can deposit as much as they want and still earn that high APY.
High-interest savings account FAQs
- What does APY mean?
- What high-yield savings account has the highest APY?
- What APY do other banks offer?
- How to navigate varying high-yield savings rates
- Can you get a 5% APY?
- How to choose a 5% interest savings account
- How to apply for a 5% interest savings account
- Can you lose money in a high-yield savings account?
What does APY mean?
APY stands for "annual percentage yield," and it's basically defined as the amount of interest an account earns in a year.
What high-yield savings account has the highest APY?
Currently, the Western Alliance Bank Savings Account stands out as offering one of the highest interest rates, at 5.05% APY on all balance tiers with no cap. There is just a $1 minimum deposit to open the account and earn the high APY.
What APY do other banks offer?
Banks offering high-yield savings accounts generally currently have rates ranging from 3% to 5% APY. But this is just for high-yield accounts. Traditional savings accounts offer APYs that are more in line with the national savings average of 0.40% APY, or even less.
How to navigate varying high-yield savings rates
This list is a good place to begin your search for a high-yield savings account offering one of the most attractive returns on your cash. You can't really go wrong with any of these accounts when it comes to earning a good return as they are all in the ballpark range around 5% APY, give or take. Navigate the varying rates by focusing on what else is most important to you — maybe it's an account with easy access to your cash, one with an ATM card or one that has tools to help you save more.
Can you get a 5% APY?
Savers can find more and more accounts these days offering around 5% APY to stay competitive with other banks. To get 5% interest on your savings, this list is a good place to start – and be sure to come back to it as rates rise even more this year.
How to choose a 5% interest savings account
When choosing a 5% APY savings account, be mindful of the fine print. Banks tout above-average APYs that often come with caveats.
Typical conditions might include a cap to how much you can earn the high APY on; for instance, earning 5% APY but only on a balance up to $1,000. This can limit your interest earnings so you really can only maximize your savings so much.
Another condition may be requiring a high minimum deposit to open a 5% APY account or to earn interest. Just make sure that the minimum is an amount you were planning to put into a savings account originally.
How to apply for a 5% interest savings account
To apply for a 5% APY savings account, go to the website of the account you wish to open. Most savings accounts take not even 10 minutes to apply and just require a government-issued ID like a passport or driver's license, Social Security number, address, contact information, date of birth and a checking account routing number to deposit money.
Can you lose money in a high-yield savings account?
There's a near-zero risk of capital loss when you open a savings account at an FDIC-insured bank, as your account is insured for up to $250,000. Interest rates may decrease, but your cash will not. Theoretically, your money wouldlose value if the inflation rate is higher than your APY, but that's no different than a traditional savings account. So, opening a high-yield savings account issafeand worth considering.
Bottom line
If your money is sitting in a savings account, maximize the interest you earn on it by switching to an account like one of the above. After all, the higher your interest rate, the faster your money can grow.
With the national average APY on savings accounts well below half of one percent, that means a savings of $2,500 may only earn you around $10 in interest the first year. Parking that same $2,500 in an online high-yield account offering 5% APY, however, means netting $125 in interest earnings the first year instead. And, naturally, the higher your balance, the higher your interest earnings. If you're going to maintain a savings account, such as for an emergency fund, you might as well earn the highest return possible.
Read more
Our methodology
To determine which interest savings accounts made this list, CNBC Selectanalyzed dozens of U.S. savings accounts offered by online and brick-and-mortar banks, including large credit unions. We narrowed down our picks by only considering those savings accounts that offer an APY of around 5% (at minimum 4.50% APY), along with low (or no) minimum balance requirements. Some banks offer around a 5% APY but only up to a cap; in these cases, we didn't include those that limited the high APY to a balance of $1,000 or less. We also took into consideration the fallback APY offered once the balance limit to earn the high APY is reached.
All of the accounts included on this list are FDIC-insured up to $250,000 per depositor. Note that the rates and fee structures for interest savings accounts are not guaranteed forever; they are subject to change without notice and they often fluctuate in accordance with the Fed rate. Your earnings depend on any associated fees and the balance you have in your interest savings account. To open an account, most banks and institutions require a deposit of new money, meaning you can't transfer the money you already had in an account at that bank.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.