It used to be that you had to work hard to find ways to get close to 5% interest on a savings account. But today, there are many online banks and savings accounts that are paying 5% (or more) interest - many times without fees or "hoops" to jump through.

Given that the national average for savings rates is just 0.40% according to the FDIC, getting 5% or more is a huge win. Remember, the more interest you can earn, the more passive income you'll have to grow your wealth.

Let's break down the best 5% interest savings accounts and banks for your money.

Best 5% Interest Savings Accounts

Here are the best 5% interest savings accounts to open an account with today:

1. Western Alliance Bank - 5.05% APY

Western Alliance Bank is one of the largest commercial banks in the United States, and they are now offering an amazing personal savings account. In partnership with SaveBetter, you can open a high-yield savings account at Western Alliance Bank online.

This account has just a $1 minimum deposit to open and no monthly maintenance fees.

Right now, you can earn 5.05% APY on your deposits. And yes, it's FDIC insured!

2. Ponce Bank - 5.05% APY

Ponce Bank is a New York bank that has been around since the 1960s. They have 14 branches located throughout New York and New Jersey.

In partnership with SaveBetter, they're offering this great money market account that just requires a $1 minimum deposit to open.

Right now, you can earn 5.05% APY on your entire balance! And yes, it's FDIC insured!

Read our full Ponce Bank review here.

Open an account here >>

3. American First Credit Union - 5.03% APY

American First CU Money Market Account is a solid option at a nationwide credit union! If you're looking to a solid credit union to park your savings, check this one out.

You can currently get 5.03% APY with just a $1 minimum opening deposit.

Read our full American First Credit Union review here.

Open an account here >>

4. Patriot Bank - 5.02% APY

Patriot Bank has been around almost 30 years, with physical branches located throughout New York and Connecticut.

In partnership with SaveBetter, they're offering this great money market account that just requires a $1 minimum deposit to open.

Right now, you can earn 5.02% APY on your entire balance! And yes, it's FDIC insured!

Read our full Patriot Bank review here.

Open an account here >>

5. Green State Credit Union - 5.01% APY

Green State Credit Union has been around since 1938, and has grown to be one of the largest credit unions in the United States. This account is offered in partnership with SaveBetter, so you can open a digital savings account that's available nationwide.

This account has just a $1 minimum deposit to open and no monthly maintenance fees.

Right now, you can earn 5.01% APY on your deposits. And yes, it's NCUA insured!

Open an account here >>

6. The Atlantic Credit Union - 5.01% APY

Atlantic Federal Credit Union Money Market Account is a solid option at one of the oldest credit unions in the United States! If you're looking to a solid credit union to park your savings, check this one out. Their goal is to deliver great financial products at the lowest possible cost.

You can currently get 5.01% APY with just a $1 minimum opening deposit.

Open an account here >>

7. FVC Bank - 5.00% APY

FVC Bank is a community bank that was founded in 2007 in the Washington DC and Virginia area. The bank tries to be technology driven and offer great tools for its customers. In partnership with SaveBetter, they are currently offering this great online money market deposit account.

You can currently get 5.00% APY with just a $1 minimum opening deposit. There are no monthly maintenance fees or other balance requirements.

This account is FDIC insured.

Open an account here >>

8. CloudBank 24/7 - 5.00% APY

Cloudbank 24/7 is a digital bank offered by Third Coast Bank SBB. They are FDIC insured, and place a huge focus on cyber security. This account is offered in partnership with SaveBetter, so you can open a digital savings account.

This account has just a $1 minimum deposit to open and no monthly maintenance fees.

Right now, you can earn 5.00% APY on your deposits. And yes, it's FDIC insured!

Other 5% Interest Accounts (CDs and Checking)

There are some other accounts that are offering 5% interest, but all of these have "catches". Some of these are Certificates of Deposit (CDs). These are term deposits, that mean that you have to keep your money in the account or you could face a penalty.

The other popular option here is high-interest checking, which are special checking accounts that pay promotion high rates IF you meet certain terms and conditions (like a certain balance or transaction amount).

Finally, there are "pay to earn" options, where you can get a higher rate if you sign up for a promotional or Gold level-type account. We don't list those here because they're not great options!

Crescent Bank 12 Month CD - 5.15% APY

Crescent Bank is a New Orleans based bank that offers both local and nationwide banking options. They currently offer some of the most competitive online certificates of deposit available. And they regularly run CD promos with exciting rates.

Right now you can get 5.15% APY on a 12-month CD option! There is a $1,000 minimum to open a CD.

Read our full Crescent Bank review here.

Check out Crescent Bank CDs here >>

Consumers Credit Union Rewards Checking - Up to 5%

Consumers Credit Union is our top pick because of their awesome Rewards Checking Account that offers an amazing interest rate on your checking account. It also puts them on our list of the best credit unions!

Right now, you can earn up to 5.00% APY on your checking account for the first $10,000. The account also has no fees, no minimum balances, and reimburses your ATM fees.

However, you do have to meet some criteria:

Earn 3.00% APY

• Receive eDocuments.
• Complete at least 12 debit card purchases totaling $100 or more each month. Debit card transactions can be made with or without using your personal identification number (PIN).
• Direct deposits or ACH credits totaling $500 or more must post to your account monthly.

Earn 4.00% APY

Meet the 3.00% requirements plus:

• Spend $500 or more in CCU Visa credit card purchase transactions each month; no minimum number of transactions.

Earn 5.00% APY

Meet the 4.00% requirements plus:

• Spend $1,000 or more in CCU Visa credit card purchase transactions each month; no minimum number of transactions.
• There’s no minimum balance to open a free checking account. CCU has over 30,000 ATMs and you’ll receive unlimited reimbursements for any ATM fees. There’s also no limit on the number of checks you can write.

If you don’t meet the above requirements for a tier, your checking will still be free, but your APY will drop to 0.01%. You also don’t receive ATM refunds.

Read our full Consumers Credit Union review here.

Learn more about Consumers Credit Union Rewards Checking here >>

What To Know About Choosing These 5% Interest Accounts?

The biggest factor when choosing a savings account is simply the interest rate. The higher the annual percentage yield (APY), the better.

For example, if you have $10,000 to save, a 1% interest rate only will earn you $100 per year. But a 5% rate will 5x that to $500 per year. That's a big difference!

Here are some other key factors to consider:

Monthly Fees

You want to make sure that you're avoiding accounts with monthly fees. Fees eat into your return - the higher the fees, the less you earn overall. Most savings accounts don't charge monthly fees.

Is Your Money Safe And Insured?

You want to make sure that your bank is FDIC Insured, and your credit union is NCUA insured. These government safety nets provide up to $250,000 per individual, or $500,000 jointly in insurance. That means that you can't lose money if you're under those limits - even if your bank fails.

Minimum Balance Requirements

You also want to understand the minimum balance requirements - both to open an account and earn interest. Many accounts on our list simply have a $1 requirement. However, others (notably CDs) have $1,000 minimum or higher.

Sometimes, banks will allow you to open an account for $0, but you won't earn any interest until you reach another level - like $10,000. Always make sure you check.

Minimum Transaction Requirements

This applies specifically to high-interest checking, but make sure you understand if any transactions are required to earn the highest interest rate.

Final Thoughts

Five percent interest rate accounts are out there, and they're becoming more and more common as the Fed Funds Rate rises. It may seem too good to be true, but it's legit.

It's also important to remember that this has happened before. In the 1980s, savings account rates reached 10%. So that could happen again as the government tries to combat inflation.

Always be shopping around for the highest rate savings account. That's how you'll earn the most interest on your money.