Unlock 7% Interest: Maximize Your Savings with Top Accounts!

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• Finding a savings account with a whopping 7% interest rate is like searching for a unicorn.
• While 7% savings accounts are mythical, two checking accounts offer that APY—or even better.
• Keep in mind, both accounts come with conditions, and one is only available in Wisconsin and Illinois!

The average savings account offers an APY of just 0.43%. However, many financial institutions are stepping up their game and providing much higher rates.

So, is a 7% savings account a dream worth pursuing? Dive deeper to understand how these high-interest accounts work and where you can snag one.

Unlocking the Secrets of 7% Interest Savings Accounts

When your account boasts a 7% APY, it means you’ll rake in a stunning 7% on your balance over the course of one year. Most banks employ compound interest, which means they reward you not just on your deposited amount but also on the interest you’ve already earned!

Banks can compound interest daily, monthly, quarterly, or annually. The more frequent the compounding, the more you’ll see your money grow. It’s common practice for savings accounts to compound daily and credit you monthly.

With a 7% APY savings account, you might earn interest on your entire balance, or perhaps only on a portion, depending on specific requirements. So, before you jump in, make sure you read the fine print!

How to Unlock a 7% APY

Each financial institution has its own set of rules. Some banks and credit unions might let you start earning interest with as little as $1 or $5, while others may set the bar at $10,000 or more to snag that top APY.

In certain cases, you may need to establish recurring direct deposits to unlock that coveted interest rate.

Top Banks Offering 7% Interest Accounts

Currently, no national or community banks are offering 7% interest on savings accounts. However, you can find two high-yield checking accounts that offer 7% APY or more; just be aware of the fine print.

BCU offers a credit union membership accessible to anyone who joins BCU’s Life. Money. You. program for free. Their PowerPlus Checking account dangles a tempting prospect with up to 8.00% APY—but only if you meet strict requirements, and that’s for a limited window of three months.

To hit that rate, you need to achieve at least $3,000 in direct deposits each month and make 30 transactions (think debit card buys) monthly. Plus, you’ll need to enroll in eStatements.

Typically, if you meet these expectations, you’ll earn 4.00% APY on the first $15,000. However, if you’re a new member signing up before December 31, 2024, you can double that APY for the first three months! Keep in mind, exceeding $15,000 in your account only yields a measly 0.01% APY.

Another player in the game is Landmark Credit Union, which serves select counties in Wisconsin and Illinois. Their Premium Checking Account offers a staggering 7.50% APY—but don’t get too excited just yet, as there are significant conditions.

First, remember this is a checking account and not a savings account. Second, you must enroll in eStatements and receive a minimum of $250 in direct deposits each month from an employer, payroll provider, pension, government benefits, or gig economy sources like DoorDash.

Also, note that you will only earn that 7.50% on balances of up to $500! With monthly compounding, you’re looking at just under $40 in interest over a year on that sum. Anything above $500 earns between 0.06% to 7.50% APY.

Considering all these restrictions, the 7.50% APY account with Landmark Credit Union might not be worthwhile. You could potentially earn more with an account that offers a lower rate but on a larger balance—perhaps even on your entire deposit!

Exploring Other Savings Opportunities

Best Alternative High-Yield Savings Accounts

While no savings accounts currently offer a 7% return, there are several accounts providing robust rates on your entire balance. These alternatives to Landmark’s checking account don’t require you to meet monthly conditions to benefit from high rates.

Certificates of Deposit (CDs)

Looking to set aside funds for a mid-term or long-term goal? A CD might be your best bet.

CD rates are competitive with high-yield savings rates, plus they allow you to lock in a high rate for the entire term length, unlike variable savings account rates.

The Upside of 7% APY Savings Accounts

Imagine a 7% interest savings account offering you the potential to earn returns comparable to stock investments—without the associated risks. Placing $10,000 in such an account with daily compounding could net you approximately $725 in interest over one year!

The Flip Side: Potential Drawbacks

Should you stumble upon a savings account flaunting a 7% interest rate, be prepared for the fine print—often high deposit requirements or tiered earning structures offering lower rates on higher balances.

Frequently Asked Questions About 7% APY Savings Accounts