Which US Banks Offer 5% Savings Accounts?

The national average APY on savings accounts may be only 0.35%, but several banks in the country are offering higher yields on savings to eligible customers in an effort to stay ahead of the competition. 

Below we will take a closer look at which US banks offer 5% savings accounts and the requirements you need to meet to get the most out of your HYSA. 

The Best High-Yield Savings Account (March 2023)

1. Varo Savings Account

  • APY: 3%–5% 
  • Interest paid: Monthly 
  • FDIC-insured (up to $250,000)

This digital-only bank, headquartered in San Francisco, currently offers the best high-yield savings account in the US. In addition to paying up to 5% APY on savings, Varo also gives customers the chance to build credit score with the Varo Believe Card or get an advance on their paycheck with no interest charged. 

All customers who open a Varo Savings Account can automatically start earning the standard APY of 3%, but will also have the chance to qualify for the Elevated Savings Rate of 5% if they receive 

  • A direct deposit of at least $1,000 from their employer or government agency and 
  • End each month with a positive balance (both their bank and savings account with Varo) 

5% APY is paid on the first $5,000 of your savings—earning you up to $100 a year. You will continue to earn 3% APY on any additional deposits above the first $5,000. 

This is much more than what other financial institutions pay—most of them offer 5% APY on the first $1,000 only, after which the APY usually drops to 0.50%.


  • No minimum balance 
  • No monthly maintenance fees 
  • Automatic savings tools available 


  • Not a full-service bank
  • You must have a Varo bank account to get 5% APY 

2. Digital Federal Credit Union (DCU) Primary Savings Account

  • APY: 0.16%–6.17% 
  • Interest paid: Monthly
  • NCUA insured (up to $250,000 per account)

Based in Marlborough, Massachusetts, Digital Federal Credit Union (DCU) is one of the top 20 credit unions in the country and the biggest one in New England. It was chartered in 1979 and has since served over one million members nationwide.

Digital Federal Credit Union provides full-service banking including checking accounts, loans, and retirement planning. It also caters to businesses and has dedicated insurance and real estate services. 

DCU is a great option for those who have never had a savings account before. Thanks to its low minimum deposit requirements (only $5), no monthly fees, and a competitive APY of 6.17%, DCU can help kickstart your savings journey. 

The catch is that the interest rate applies to the first $1,000 in your account only. Any deposits after that get a low APY of 0.16%. 

If you are planning on depositing more than $1,000 in your account, another savings account with a lower APY that covers your entire balance might end up yielding higher returns. 


  • No monthly fees 
  • 80,000+ surcharge-free ATMs nationwide
  • 23 DCU locations available nationwide
  • Almost anyone can join


  • High overdraft fees
  • Must be a member to access services


Read more: Are credit unions better than banks?

3. Mango Money Savings

  • APY: 0.10%–6%  
  • Interest paid: Monthly 
  • FDIC-insured (up to $250,000 once you verify identity)

Mango Money is a digital-only bank with headquarters in New York. The bank’s main product is the Mango Prepaid Mastercard, designed for consumers who can’t or don’t want to apply for a regular credit card. It comes with a $5 monthly fee, which is waived if you have at least $800 in direct deposits.

All active Mango Card holders can open a Savings Account with the bank. However, to be able to qualify for HYSA rates of 6%, you need to 

  • Have an average daily balance of at least $25
  • Have signature transactions of at least $1,500 a month (these are non-PIN purchases, i.e. when the merchant signs the sales receipt instead of requesting a PIN)
  • Have a minimum balance of $25 on the last day of the month

Note that the 6% APY drops to 0.10% once your balance goes over $2,500. 

Customers who have an average daily balance over $5,000 and less than $200 in signature purchases will not receive any interest on their savings.


  • Mobile-enabled cardholder portal
  • $10 referral bonus
  • Deposit via PayPal, bank transfers, cash & direct deposit
  • Monthly fee can be waived 



  • Minimum daily average balance of $25 required
  • Maximum daily balance of $5,000 

4. Blue Federal Credit Union Accelerated Savings Account

  • APY: 0.15%–5%   
  • Interest paid: Monthly 
  • NCUA insured (up to $250,000 per account)

Blue FCU is an NCUA insured not-for-profit financial institution based in Cheyenne, Wyoming. It provides a wide range of financial services from personal and commercial banking to financial planning and investment advice to more than 115,000 members worldwide. 

On top of that, Blue FCU offers up to 5% APY for all Accelerated Savings Account holders with balances up to $1,000. Customers who have a higher monthly balance than $1,000 will earn interest based on the company’s tiered structure as follows

  • $1,000.01–$5,000.00: 1.80% APY
  • $5,000.01–$10,000.00: 1.15% APY
  • $10,000.01–$50,000.00: 0.43% APY
  • $50,000.01+: 0.15% APY

In addition to competitive interest rates, your savings account can help you earn points in Blue’s Rewards for Life program, which can be redeemed for future discounts and bonuses. 


  • Earn dividends without making monthly transfers
  • No limits on withdrawals 
  • Easy to join
  • Full-service bank


  • The tiered structure may be a bit confusing 
  • 5% APY on the first $1,000 only


Related: What’s the difference between APY and interest rate?

5. NetSpend

  • APY: 0.50%–6% 
  • Interest paid: Quarterly 
  • FDIC-insured up to $250,000

Founded in 1999, NetSpend is a prepaid credit card company that caters primarily to bad credit applicants and customers in search of alternative financial services. So far this FDIC-insured institution has worked with 68 million underbanked consumers, giving them financial security and freedom. 

Like Mango Money, all NetSpend Prepaid Card holders are automatically eligible to open a savings account and receive up to 6% APY on the first $2,000. Should your average daily balance exceed $2,000

  • The APY on the portion of the daily average balance above $2,000 will drop to 0.50%
  • the APY on the portion of the daily average balance which is $2,000.00 or less will be 0.60% 

While it is easy to get and fund the NetSpend Card, there are several fees involved. These can range from ATM withdrawal charges to reload fees (you add cash at 130,000+ reload locations nationwide). You will also need to pay a monthly fee of $9.95 or opt for a pay-as-you-go scheme and pay $1.95 per purchase. 


  • No minimum balance 
  • No credit check 
  • Load check via mobile 


  • Monthly or pay-as-you-go fee


  • Cash reload & Direct Deposit fees apply
  • No option to waive monthly fees

How Can I Earn High-Interest Rates Besides a Savings Account?

Here are a few alternatives to HISAs.

Money market accounts

These are a type of savings account that offer high-interest rates (around 4%) and typically come with other benefits such as check-writing and ATM cards, making them one of the best instruments for short-term savings

However, they do tend to have higher minimum balances than HYSAs with some requiring a minimum deposit of $1,000 to start saving. 

Certificates of deposit

You can find high-yield CDs with APY up to 4.70% or even 5%. The trick is that these accounts lock away your money for a certain period of time (generally from one to five years). If you know that you won’t need the money soon, CDs are a great alternative to HISAs. But should you withdraw your money before the term is up, you will be charged a penalty fee. 

Index funds

Index funds offer diversification and higher returns than high-interest saving accounts. In fact, index funds have been known to provide returns as high as 28.71%. However, as with any stock market investment, there is always the risk of loss. 

Fixed annuity

This is a type of contract between you and the insurance company which promises to pay out a fixed interest rate on the contributions you make to the account. As of February 2023, the best  MYGA rate is 4.80% for a 10-year surrender period and 4.99% for a seven-year surrender period. 

While this is a safer option than investing in the stock market directly, you will need to pay higher fees. Plus you will be involved in a long-term contract that could be costly to break.

US Treasury Bonds

You could also choose to borrow money to the government by investing in Treasury Bonds. Treasury bonds are issued for a term of either 20 or 30 years and pay a fixed interest rate every six months until they mature. 

The current interest rate on Series I Savings Bonds issued between November 1 2022 and April 30 2023 is 6.89%.


Which banks offer savings accounts close to 5% APY?

Here is a brief look at banks that offer APY close to 5%.

Why do popular banks have low APYs?

There are several reasons why big banks offer lower APY on savings accounts than digital-only banks and credit unions. For one, banks tend to have high overheads and expenses. Another reason is that banks have low-interest rates on loans, which means that APY on savings accounts need to be lower if the financial institution wants to make a profit.

Finally, high APY is a great way to attract new customers, but this tactic might not be necessary for well-established brands that already have a large share of clients.

How much is 5% APY on a million dollars?

In theory, you could earn up to $50,000 a year if you have a 5% savings account and a million-dollar balance.

However, it is highly unlikely that you will be able to get a 5% on an account balance that high as most banks and credit unions only pay out high-interest rates on balances up to $1,000 or $5,000 (as is the case with Varo).

Which banks offer 7% interest savings accounts?

There are no banks in the US that offer 7% APY on savings accounts. The closest that comes to that figure is Landmark CU, a Wisconsin-based credit union that currently provides 7.50% APY on balances up to $500 as part of their Premium Checking Account. 


Alex is an IT wizz gone SEO gone fire-juggler. We’re not even joking. When he isn’t researching why one personal loan is better than the other and which piece of hardware you should buy next, he’s rollerblading or selling homes (because he does that, too, the smarty-pants).

Latest from Aleksandar

Which US Banks Offer 5% Savings Accounts? A Guide to Living Off the Grid [7 Things You Need to Know] How to Become an Appraiser in 2024 How to Flip Houses With No Money in 2024

Leave a Reply