Savings APYs are hitting 5.00%
In the aftermath of the pandemic, savers have benefited from rising rates as the Fed works to get the economy back on track and cool down record-high inflation. Higher rates for borrowers have translated to higher rates on deposit accounts like money market accounts, CDs, and high-yield savings accounts.
Annual percentage yields (APYs) for high-yield savings accounts are blowing past the norm and hitting 4% or even 5% in some cases.
We rounded up a few of our top picks for savings accounts that currently offer some of the highest rates across the nation.
Where savings account rates stand today
According to the most recent figures, average national rates for a savings account stands at 0.42%. This time last year, that figure stood at just 0.08%.
These figures are just national averages, and many financial institutions have raised their APYs to reel in new customers and make them want to save even more in this high-interest environment when many consumers are hitting pause on any plans to borrow.
For consumers who are hoping to boost their savings account balances, it could pay to shop around for a new account.
Savings accounts offering APYs of 5% and above
We rounded up accounts that are currently offering APYs of 5% or greater to help you choose the right account for your savings.
My Banking Direct
APY: 5.00%
Minimum opening deposit: $500
Monthly fee: $0
My Banking Direct is an online-only bank that is part of Flagstar Bank, N.A. Its parent company, New York Community Bancorp, is headquartered in Hicksville, N.Y., and was founded in 1859. Its products include CDs, high-yield savings, and checking accounts.
While this account did have a higher deposit required to open, the minimum to earn its 5.00% APY is just $1. This account also scored a high ranking on our list for its high customer service score. For customers who prefer to have evening or weekend customer service hours, this could be a worthwhile option. My Banking Direct also has a mobile application—NYCB Mobile, available for download on the Apple App Store and Google Play. They can use the app to review their account and transaction history, transfer funds, make bill payments, send money using Zelle, and receive alerts about their account.
Popular Direct
APY: 5.05%
Minimum opening deposit: $5,000
Monthly fee: $0
Popular Direct’s parent company, Popular Bank, has roots that stretch back to 1893 and offers a number of financial products and services to customers across the U.S., Puerto Rico, and the Caribbean. Its products include CDs and savings accounts.
Popular Direct’s high-yield savings account is currently offering a 5.05% rate for a minimum opening deposit of $5,000. For savers who are just getting started, this account may not be the right fit. However, this account does offer online and mobile banking access and round-the-clock customer support.
Salem Five Direct
APY: 5.01%
Minimum opening deposit: $10
Monthly fee: $0
Salem Five Direct is a subsidiary of Salem Five Bank, based in Salem, Mass., with branches across the Boston area. It began in New England in 1855 as a small savings bank and has grown to provide lending, retail and internet banking, personal and commercial insurance, and wealth and trust management services.
Salem Five Direct’s high-yield savings account currently boasts one of the highest APYs on the market. To be eligible for an eOne Savings Account, you’ll need to apply online. This account is also not available to consumers who have an existing checking or savings account with Salem Five Bank at the time of the application, with the exception of customers who have an existing eOne Checking Account.
Varo
APY: 5.00%
Minimum opening deposit: $0
Monthly fee: $0
Varo Bank is an FDIC-insured, online-only bank that provides services online or via mobile app, with zero physical branches. Varo offers a savings account, cash advances, a credit-builder card, and more. Varo’s high-yield savings account is currently offering a 5.00% APY, although this APY only applies up to the first $5,000 in your account; you can expect to earn a 3.00% APY on higher balances. For savers who hate fees—this account won’t charge any fees or tie you to minimum balance requirements.
The takeaway
If you’re looking for somewhere to keep your savings, taking advantage of this high-interest environment and doing some research to compare account APYs and secure the highest rate could help you boost your savings in no time.
