Believe it or not, you can get a 5% interest savings account in 2021. 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
None
Fees
$5
Min. opening deposit
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
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
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
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
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
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 ReviewOpening a 5% interest savings account comes with these benefits and drawbacks:
Pros
- Good savings boost. The 5% interest rate is high enough to give your savings a noticeable boost, which can help you reach your goals faster.
- Low deposits. Most 5% savings accounts have opening deposits of $0 to $25, making them a good choice for those who are just getting started on their savings journey.
Cons
- There’s always a catch. We’ve yet to find a 5% savings account that doesn’t cap your earnings at $500 or $1,000. Plus, you may have to watch out for minimum balance requirements and monthly activity minimums to earn interest.
- Most are tied to prepaid cards. Most prepaid cards cost at least $60 a year ($5 a month). If you keep a $1,000 savings balance, you’d earn $50 in interest, which is not even enough to cover the fees.
This table highlights how much interest you’d earn in a year if you put $1,500 into each savings account in this list.
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.
5% on first $1,000 | 0.25% after that | $50 | $60 | $72.50 | $85 |
1% on all balances | $10 | $50 | $100 | $150 |
Use this table to calculate interest rates and compare accounts by APY, monthly fee and minimum deposit requirements.
Yes. There are a few savings accounts in the US that earn at least 6% APY:
Mango high-yield savings
Up to 6%
APY
None
Fees
$25
Min. opening deposit
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
Up to 6.17%
APY
None
Fees
$5
Min. opening deposit
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 |
|
---|
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.