Can I get a 5% interest savings account in 2020?

Believe it or not, you can get a 5% interest savings account in 2020. They rope you in with a sensational APY, but it usually only applies to the first $500 or $1,000 in your account. After that, your APY drops significantly. Here are six 5% interest savings accounts:

• Service Credit Union Primary Savings: Up to 5% APY
• Blue Federal Credit Union Accelerated Savings: Up to 5% APY
• Netspend Savings Up to 5% APY

• Brinks Money Savings Account Up to 5% APY
• ACE Elite Optional Savings Account Up to 5% APY
• Western Union Optional Savings Account Up to 5% APY

Service Credit Union Primary Savings

Up to 5%
APY

None
Fees

$5
Min. opening deposit

• Info
• Pros & cons
• Details

This Primary Savings account from Service Credit Union has a low $5 opening deposit and no monthly fees. But you only earn 5% APY on the first $500 in your account. After that, it drops to 0.25%.

• No monthly fees. Open this account and enjoy no maintenance fees and a low $5 opening deposit.
• Lenient membership requirements. If you fall outside of Service CU's regular field of membership, you can still join when you become a member of the American Consumer Council (ACC). This organization is free to join.

• Low cap on interest. You only earn 5% APY on the first $500 in your account, which is a lower cap than others on our list.

Interest compounding	Daily
Minimum to earn interest	$0
Monthly transaction limit
Fee per transaction over limit

Blue Federal Credit Union Accelerated Savings

Up to 5%
APY

None
Fees

$25
Min. opening deposit

• Info
• Pros & cons
• Details

The Accelerated Savings account from Blue Federal Credit Union earns 5% APY on balances up to $1,000, then 0.1% on your remaining balance. As a member, you get access to Blue FCU rewards and other perks.

• No monthly fees. This account doesn't have any monthly fees, plus you only need a $25 deposit to open an account.
• Rewards program. As your balance grows, you earn points toward Rewards for Life, a program that gives you access to loan discounts, higher APYs on checking accounts, waived fees and more.

• No joint accounts. Blue Federal Credit Union's website says this account is limited to one Social Security number, which means you can't add anyone else to your account.
• APY requirements. To earn interest, you must keep a minimum $25 balance and transfer at least $5 a month into your Accelerated Savings account. Plus, your APY drops to 0.1% on balances over $1,000.
• Members only. If you don't qualify for membership through family, military affiliation or your employer, you can join by making a $10 donation to the Blue Foundation.

Interest compounding	Daily
Minimum to earn interest	$0
Monthly transaction limit
Fee per transaction over limit

Netspend Savings

Up to 5%
APY

None
Fees

None
Min. opening deposit

• Info
• Pros & cons
• Details

Available to those with a NetSpend Prepaid Debit Card, this optional savings account earns 5% on the first $1,000 in your account and 0.5% on the remaining balance.

• AutoSave feature. Set up autosave so that your money is sent from your NetSpend Card account to your savings account each time you reload funds.
• No fees. This savings account is free to open and maintain, but there may be fees associated with your NetSpend Prepaid Card account.

• Prepaid card required. The NetSpend Savings Account is only available to those with a NetSpend Prepaid Card account.

Interest compounding	Daily
Minimum to earn interest	$0
Monthly transaction limit	6
Fee per transaction over limit

NetSpend® Visa® Prepaid Card

Brinks Money Savings

Up to 5%
APY

None
Fees

None
Min. opening deposit

• Info
• Pros & cons
• Details

This optional high-yield savings account is open to anyone with a Brink's Money Prepaid Mastercard. It earns 5% on the first $1,000 in your account and 0.5% on money over this limit.

• No minimum deposit. Deposit as much or as little money as you'd like into this optional savings account.
• Solid APYs. Once you reach your $1,000 limit, you still earn 0.5% on your balance — a rate higher than most traditional savings accounts.

• Prepaid card required. You need a Brink's Money Prepaid Mastercard to access this savings account.
• Not completely free. Although this savings account doesn't have any fees, you'll pay $5 to $9.95 a month for the Brink's Prepaid Mastercard. Unfortunately, you can't waive this fee.

Interest compounding	Daily
Minimum to earn interest	$0
Monthly transaction limit
Fee per transaction over limit

Brinks Prepaid Mastercard review

ACE Elite Optional Savings

Up to 5%
APY

Fees

None
Min. opening deposit

• Info
• Pros & cons
• Details

Ace Elite Prepaid Card users can open an optional savings account and enjoy 5% APY on balances up to $1,000. Then, 0.5% on balances after that.

• No minimum deposit. Once you set up your ACE Elite savings account, you can deposit as much money as you'd like.
• Competitive APYs. You earn 0.5% interest on balances over $1,000, which is still higher than the national average and most traditional savings accounts.

• Prepaid card required. The only way to access this account is if you have an ACE Elite Prepaid Card.
• Not completely free. The savings account is free to use, but you'll pay at least $5 a month for your ACE Elite Prepaid Card.

Interest compounding	Daily
Minimum to earn interest	$0
Monthly transaction limit
Fee per transaction over limit

ACE Flare Account review

Western Union Optional Savings

Up to 5%
APY

None
Fees

None
Min. opening deposit

• Info
• Pros & cons
• Details

The Western Union Optional Savings Account is available to those with a Western Union NetSpend Prepaid Mastercard. It rewards you with 5% interest on balances up to $1,000, plus 0.5% on anything over this limit.

• No fees. Deposit as much or as little money as you'd like into this optional savings account.
• Decent interest rates. You earn 0.5% APY on balances over $1,000, which is higher than most traditional savings accounts, which typically earn around 0.1% APY.

• Prepaid card required. You must have a Western Union NetSpend Prepaid Mastercard to open this savings account.
• Not completely free. Similar to other options on our list, you'll pay at least $5 a month for your Western Union Prepaid Card, which means the savings account isn't entirely free.

Interest compounding	Daily
Minimum to earn interest	$0
Monthly transaction limit
Fee per transaction over limit

Western Union NetSpend Prepaid Mastercard Review

Pros and cons of a 5% interest savings account

Opening a 5% interest savings account comes with these benefits and drawbacks:

How much money can I make on a 5% savings account?

This table highlights how much interest you’d earn in a year if you put $1,500 into each savings account in this list.

Account	APY	Interest compounded	Total annual interest earned
Service Credit Union Primary Savings	5% on the first $5000.25% after that	Daily	$27.50
Blue Federal Credit Union	5% on the first $1,0000.1% after that	Daily	$50.50
NetSpend Optional Savings Account	5% on the first $1,0000.5% on balances after that	Daily	$52.50
Brinks Money Optional Savings Account	5% on the first $1,0000.5% on balances after that	Daily	$52.50
ACE Elite Optional Savings Account	5% on the first $1,0000.5% on balances after that	Daily	$52.50
Western Union Optional Savings Account	5% on the first $1,0000.5% on balances after that	Daily	$52.50

Is a 5% interest savings account worth it?

Whether a 5% interest savings account is worth it depends on several factors, such as the APY restrictions and how much money you keep in the account. Eventually, you’ll reach a tipping point where you’ll earn more interest with a regular high-yield savings account.

Case study: 5% APY vs. 1% APY annual savings

This table shows how much interest you’d earn in a year in an account that earns 5% interest on your first $1,000 vs. an account that earns 1% on your total balance.

APY	Interest earned on $1,000 balance	Interest earned on $5,000 balance	Interest earned on $10,000 balance	Interest earned on $15,000 balance
5% on first $1,000	0.25% after that	$50	$60	$72.50	$85
1% on all balances	$10	$50	$100	$150

Compare savings accounts

Use this table to calculate interest rates and compare accounts by APY, monthly fee and minimum deposit requirements.

Are there 6% or 7% APY savings accounts?

Yes. There are a few savings accounts in the US that earn at least 6% APY:

Mango high-yield savings

Read review

Up to 6%
APY

None
Fees

$25
Min. opening deposit

• Info
• Pros & cons
• Details

Mango Savings earns 6% APY on the first $2,500 in your account when you maintain a minimum $25 balance and make at least $1,500 a month in signature-based purchases with your Mango Prepaid card. You earn 0.1% on balances over $2,500.

• Fallback APY. If you can't meet the steep $1,500 spending requirement, you still earn 2% APY when you make between $750 and $1,499.99 in signature-based purchases.
• High APY cap. Most savings accounts with rates of 5% or more cap your earnings at the first $1,000, but Mango lets you earn 6% on up to $2,500.

• Prepaid card required. As with other accounts on our list, you must have a Mango Prepaid Card to open this savings account.
• Not completely free. Although the Mango Savings account is free, the Mango card has a $5 monthly fee that's waived when you make at least $800 in monthly direct deposits.

Interest compounding	Daily

Mango Prepaid Mastercard review

DCU Primary Savings Account

Read review

Up to 6.17%
APY

None
Fees

$5
Min. opening deposit

• Info
• Pros & cons
• Details

Get a jump start on your savings with the Digital Federal Credit Union (DCU) Primary Savings account. You earn 6.17% on the first $1,000 in your account — the highest rate we've seen yet. Plus, 0.25% on anything over this limit.

• No monthly fee. This account has no monthly fees, no minimum to earn interest and a low $5 opening deposit.
• ATM card. Unlike other savings accounts, this one comes with an ATM card so you can withdraw cash whenever you need it.
• Easy membership requirements. Anyone can join when they make a $10 donation to DCU's partner charity, Reach Out For Schools.

• Limited branches. DCU only has branch locations in Massachusetts and New Hampshire. If you live outside of this area, you are limited to phone support.

Interest compounding	Daily
Minimum to earn interest	$0
Monthly transaction limit
Fee per transaction over limit

Bottom line

A 5% interest savings account sounds enticing, but you’ll want to read the fine print before you open an account. There’s a good chance the APY maxes out at $500 or $1,000. If you don’t want to deal with strict APY requirements, consider these high yield alternatives. Depending on your balance, you may earn more interest with one of these accounts anyway.

Frequently asked questions

• How much money should I put into a 5% savings account?

  Saving money is always a good idea, so save as much as you can — regardless of how much interest the account earns. That said, if you get to a point where you have at least $5,000 in a 5% savings account, it may be time to look into a regular high-yield option as you’ll likely earn more interest.