Where to find 7% interest right now

No major bank is currently offering 7% interest on a standard savings account. The highest rates available from FDIC-insured banks are typically between 4.5% and 5.35% as of early 2024, depending on the institution and account type. Rates change frequently—sometimes weekly—so the specific number you see today may be different next week.

If you've seen an advertisement claiming 7%, it's usually either outdated, referring to a promotional rate that has ended, or coming from a source that isn't FDIC-insured. Some credit unions, money market accounts, and certificates of deposit (CDs) occasionally reach higher rates, but these come with restrictions like minimum deposits, lock-in periods, or membership requirements.

The reason rates fluctuate is that banks set their savings rates based on the Federal Reserve's benchmark rate. When the Fed raises or lowers its rate, banks adjust what they pay depositors within weeks or months. A rate that was 7% last year may be 4% this year, or vice versa.

Key Takeaways

  • The highest FDIC-insured savings account rates currently range from 4.5% to 5.35%, not 7%.
  • Rates change frequently based on Federal Reserve decisions, so comparing banks weekly is necessary if you want the best current rate.
  • Credit unions and CDs sometimes offer higher rates than savings accounts, but usually require you to lock your money away or meet membership criteria.
  • Online banks typically offer higher rates than brick-and-mortar banks because they have lower overhead costs.
  • Money market accounts may pay more than savings accounts but often require larger minimum deposits and limit how many withdrawals you can make per month.

How to find the current highest rates

The fastest way to see what's available right now is to visit rate-comparison sites like Bankrate, DepositAccounts, or the FDIC's own BankFind tool. These sites update daily and show you the top-paying accounts by type: savings, money market, CD, and by term length for CDs.

When you compare, look at three things: the Annual Percentage Yield (APY), the minimum deposit required, and whether the rate is promotional or permanent. A promotional rate might be 5.35% for the first three months, then drop to 2% after that. A permanent rate stays the same as long as you keep the account open.

Online banks almost always beat brick-and-mortar banks on rates because they don't pay for physical branches, tellers, or as much staff. If you're willing to manage your account through a website or app instead of in person, you'll see higher numbers. Banks like Marcus, Ally, and American Express Personal Savings typically rank near the top, but the leader changes as rates shift.

Why you might see 7% advertised

If you found a 7% rate somewhere, check the fine print. It could be a CD rate, not a savings account rate—CDs lock your money for a set period (three months, one year, five years), and you pay a penalty if you withdraw early. A 7% CD might exist, but you can't touch that money without losing interest.

It could also be a promotional rate that applied only to new customers during a specific window and has since expired. Banks sometimes advertise their best historical rates to attract attention, even if those rates aren't currently available.

Another possibility is that the source isn't FDIC-insured. Some fintech companies, peer-to-peer lending platforms, or unregulated investment products claim higher returns, but they don't protect your money the way FDIC insurance does. If the bank fails, FDIC insurance covers up to $250,000 per account holder per institution. Uninsured products offer no such protection.

Money market accounts versus savings accounts

Money market accounts sometimes pay more than savings accounts—occasionally reaching 5% or higher—but they come with trade-offs. Most require a higher minimum deposit (often $2,500 to $10,000) and limit you to six withdrawals per month. If you exceed that limit, you may face fees or the account converts to a checking account.

Money market accounts also give you check-writing privileges and a debit card, which savings accounts typically don't. If you need occasional access to your money and can meet the minimum, a money market account might pay more. If you need frequent access, a regular savings account is simpler even if the rate is slightly lower.

Certificates of deposit and credit union rates

CDs often pay more than savings accounts because you agree to leave your money untouched for a fixed period. A one-year CD might pay 5.5%, a five-year CD might pay 5.2%. The longer you lock in, the more you earn—but if you need the money before the term ends, you forfeit some or all of the interest as a penalty.

Credit unions sometimes offer rates that beat banks, especially if you're a member. Credit unions are nonprofit and return profits to members, so they can afford to pay more. However, you usually have to meet membership criteria—work for a specific employer, live in a certain area, or belong to an organization. The National Credit Union Administration (NCUA) insures credit union accounts up to $250,000, the same as FDIC insurance.

How to lock in a rate before it drops

If you find a rate you like, open the account quickly. Rates can drop within days if the Federal Reserve signals a rate cut or if a bank decides to reduce what it pays. You don't need to wait for a "perfect" rate—rates rarely stay at their peak for long, and the difference between 5.2% and 5.0% on a $10,000 deposit is only about $20 per year.

Once you open an account, your rate is usually locked in for as long as you keep the account open—unless the bank changes its terms, which they can do with notice. Read the account agreement to see whether your rate is may provide or whether the bank reserves the right to lower it.

If you have money in multiple banks, you can spread it across accounts to maximize your FDIC insurance coverage. Each bank covers up to $250,000 per person, so $250,000 at Bank A and $250,000 at Bank B are both fully protected.

What happens if rates drop after you open an account

If you lock in 5.3% today and rates drop to 3% next month, your rate stays at 5.3%—that's the advantage of opening an account now. Banks can lower rates on existing accounts, but they must give you notice (usually 30 days) and you can close the account without penalty if you disagree with the new rate.

If rates rise after you open an account, your rate doesn't automatically increase. You're stuck at the original rate unless you close the account and open a new one elsewhere. This is why some people keep an eye on rates and move their money when a better option appears—it's called "rate chasing," and it's a legitimate strategy if you have the time for it.

Frequently Asked Questions

Can I get 7% on a savings account that's FDIC-insured?

Not currently. The highest FDIC-insured savings rates are between 4.5% and 5.35%. If you see 7% advertised, it's either a CD (which locks your money), a promotional rate that has expired, or from an uninsured source. Check the fine print and confirm the bank is FDIC-insured before depositing.

Do I have to pay taxes on the interest I earn?

Yes. Interest earned on savings accounts, money market accounts, and CDs is taxable income. Banks send you a 1099-INT form at the end of the year if you earned $10 or more in interest. You report this on your tax return. The higher the rate, the more tax you'll owe on the earnings.

What's the difference between APY and APR?

APY (Annual Percentage Yield) includes compound interest—interest earned on your interest. APR (Annual Percentage Rate) does not. For savings accounts, always compare APY, not APR. A 5% APY will earn you more than a 5% APR because of compounding.

If I move my money to a new bank for a higher rate, do I lose my FDIC insurance?

No. FDIC insurance follows your money to whichever bank holds it. When you move $50,000 from Bank A to Bank B, you're still covered up to $250,000 at Bank B. You only lose coverage if you exceed $250,000 at a single bank or if the new bank isn't FDIC-insured.

How often do banks change their rates?

Banks can change rates whenever they want, though most adjust weekly or monthly in response to Federal Reserve decisions. Some change daily. If you want to track the best current rates, check a comparison site weekly. Rates that were best last month may not be best this month.