April 27, 2023

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Best 5% Interest Savings Accounts of April 2023

10 min read

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 the highest yield 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. (See our methodology below for more information on how we created this list.)

Best 5% interest savings accounts

Compare offers to find the best savings account

UFB Premier Savings: earn up to 4.81% APY

UFB Premier Savings

UFB Premier Savings is offered by Axos Bank, a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    No max number of transactions; max transfer amounts may apply

  • Excessive transactions fee

  • 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?

  • Offer ATM card?

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 one of the highest interest rates currently available at up to 4.81% APY — with no cap. Though UFB Direct notes that this is a tiered savings rate, at the time of writing all balance tiers earn this 4.81% APY.

This account has no minimum deposit requirement so savers can deposit $1 or $100 and earn the same high APY. 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.

Varo Savings Account: qualify to earn 5% APY on up to $5,000

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

  • Monthly fee

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle

  • Excessive transactions fee

  • Overdraft fee

  • Offer checking account?

  • Offer ATM card?

    Yes, if have a Varo Bank Account

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:

  1. Receiving $1,000 or more in direct deposits per month
  2. 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 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.

Mango Savings: qualify to earn 6% APY on up to $2,500

Mango Savings™

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

  • Monthly fee

  • Maximum transactions

    Up to 6 transfers out each month and transfer amounts to savings apply

  • Excessive transactions fee

  • Overdraft fee

  • Offer checking account?

  • Offer ATM card?

    Yes, offers prepaid debit card

Pros

  • Strong APY
  • Low minimum balance
  • No monthly fees
  • Offers prepaid debit card with ATM access

Cons

  • 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 by Metropolitan Commercial Bank) can open a Mango Savings account and earn up to 6% APY on balances up to $2,500 by meeting two requirements:

  1. Make a minimum deposit of $25 and have that minimum balance at the end of the month
  2. 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. 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.

Western Alliance Bank Savings Account: earn 4.85% APY

Western Alliance Bank Savings Account

Western Alliance Bank is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • 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?

  • Offer ATM card?

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 4.85% APY and requires just a $1 minimum deposit to open an account. There is no cap for earning the 4.85% APY.

Western Alliance Bank savings products are powered by SaveBetter, which means that savers’ accounts are opened and managed on the SaveBetter.com platform.

Newtek Bank Personal High Yield Savings: earn 5.00% APY

Newtek Bank Personal High Yield Savings

Newtek Bank is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • 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

  • Overdraft fee

  • Offer checking account?

    Only a business checking account

  • Offer ATM card?

    Yes, if have a Newtek checking account

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 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.

CFG Bank High Yield Money Market Account: earn 5.02% APY

CFG Bank High Yield Money Market Account

CFG Bank is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • 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

  • Overdraft fee

  • Offer checking account?

  • Offer ATM card?

Pros

  • Strong APY
  • Option to waive monthly fee
  • Offers checking account and ATM access

Cons

  • $1,000 minimum deposit required
  • $10 monthly fee
  • Rules around transaction limits

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 5.02% 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 5.02% APY, which means savers can deposit as much as they want and still earn that high APY.

Laurel Road High Yield Savings: earn 4.80% APY

Laurel Road High Yield Savings®

Laurel Road High Yield Savings® is offered by KeyBank N.A., a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • 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?

  • Offer ATM card?

    Yes, if have a Laurel Road checking account

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.

FAQs

What high-yield savings account has the highest APY?

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.

Bottom line

Our methodology

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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.

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