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In recent years, deposit rates as high as 7% APY made a savings account look like a better investment than the stock market. But those rates have largely become a thing of the past. 

Today, the best high-yield savings accounts offer as much as 4% APY. Alternatively, some credit unions offer 7% on checking accounts, but these accounts are rare and the terms and conditions can be complex.  

So, why don't 7% savings accounts exist anymore — and how can you earn as much interest as possible on your savings? Read on to learn more.

Currently, no banks are offering 7% APY on savings accounts. If you're looking for the highest returns on federally insured deposit accounts, the best available rates are generally in the 3% to 4% APY range for high-yield savings accounts (HYSAs), certificates of deposit (CDs), and money market accounts (MMAs).

So why aren't 7% APY savings accounts available anymore? The answer largely comes down to the Federal Reserve's interest rate policy.

Beginning in 2022, the Fed launched one of its most aggressive rate-hiking cycles in decades to combat elevated post-pandemic inflation. It continued raising rates into 2023 before shifting course in 2024 and beginning a series of rate cuts as inflation cooled and economic conditions evolved.

When the Fed raised rates, banks increased yields on their accounts to attract deposits, leading to some of the most competitive savings rates seen in years. However, as the Fed lowered rates again, those yields gradually declined, and today's top accounts no longer offer the same high rates as before.

Today, inflation remains above the Fed's long-term 2% target, so policymakers have kept interest rates unchanged this year while they continue to evaluate inflation, employment, and broader economic conditions. There's a chance the Fed may increase its target rate at some point this year, but not enough to bring savings account rates back up to 7%.

To find the highest rate on a savings account, you'll have to shop around. Interest rates vary drastically from one account to another; the national average savings account rate is just 0.38%, so earning more starts with some comparison shopping.

When you find a bank or credit union that advertises a high interest rate, be sure to read the fine print. In some cases, the highest rate on an account only applies to a limited portion of your deposit, and you have to meet certain requirements to earn that rate. Any or all of these actions may be required:

Enroll in eStatements

Complete a minimum number of debit transactions per month

Receive a minimum dollar amount in direct deposits per month

Log into your account at least once a month

Open both a checking and savings account with the financial institution

Bank accounts that offer 7% APY are extremely rare. That said, you can find a handful of credit unions that pay 7% or more on checking or savings accounts. The catch: These rates only apply to a portion of your balance. Plus, you must meet the credit union's eligibility requirements for membership, which are often limited to those who live, work, go to school, or attend church in a specific region.

Before opening an account, take a close look at the terms and conditions to determine whether you can earn the advertised rate.

FINANCIAL INSTITUTION

ACCOUNT

HIGHEST APY

FINE PRINT

BCU

PowerPlus Checking

8% on balances up to $15,000

APY drops to 4% after 3 months; balances over $15,000 earn 0.01% APY

Monthly activities must be completed to earn the highest rate

Community Financial Credit Union

High-Yield Savings Account

10% on balances up to $1,000

Balances over $1,000 earn 0.1% APY

Evolve Credit Union

ePriority Checking

7% on balances up to $10,000

30 debits per month required to earn the highest APY; 15 debits per month required to waive $9 fee

Landmark Credit Union

Premium Checking

7.5% on balances up to $500

Balances over $500 start at 0.06% APY; Requires eDocuments enrollment and a minimum of $250 in direct deposits each month

Read more: 7 credit unions anyone can join

Earning 7% APY on a bank savings account is a thing of the past, but that doesn't mean you should abandon your savings efforts. Keeping some money in FDIC- or NCUA-insured accounts remains essential for good financial management, even when interest rates are falling.

Here's where you can deposit your money to maximize your interest:

Day-to-day spending cash: Look for a high-yield checking account with low or no fees, where you can make unlimited withdrawals without any penalty. 

Emergency savings: Try a high-yield savings account or money market account where you qualify for a high APY based on the balance amount you can consistently keep on deposit.

Short- and mid-term savings: Open a CD or Treasury bill that allows you to lock in an above-market APY before the Fed makes more interest rate cuts.

Long-term savings: Invest in a retirement account (ideally with an employer match) where you'll earn compound returns over the long term. Stock purchases and other investments can bring high returns, too, but they should be part of a balanced portfolio, especially given the current uncertainty in the stock market.

With deposit interest rates falling, you may be wondering if your high-yield savings account (HYSA) is still worth it. Here’s what to know.

If you want to supercharge your savings this year, consider a high-yield savings account (HYSA). Here's a look at how much an HYSA can earn through 2027 based on today's rates.

These are the best high-yield savings accounts today. We evaluated dozens of accounts to find the 10 best. See our picks based on interest rates, fees, and more.

Banking rates are influenced by a variety of factors, and they can change at any time. Here’s a look at how bank savings interest rates are set, and how to find an account with a competitive rate.

Typically, high-yield savings accounts are perfectly safe. But you still need to take steps to protect your funds, including banking with a federally insured institution and avoiding fees.

Find out how your checking account interest rate compares to the national average and learn how to maximize your account’s value.