Finest 5% Interest Cost Savings Accounts Of 2025

Thanks to its unorthodox yield structure, Varo High-Yield Cost Savings Account is an excellent choice for young savers just starting to build their emergency fund and those who keep less than $5,000 in a cost savings account. More recognized savers, though, may want to look at our other winners.

What We Liked

The Varo High-Yield Savings Account uses an APY of 2.50% or 5.00% on balances up to $5,000, which is amongst the highest rates on the market. Additionally, the account does not charge any costs and there are no balance requirements to open an account. Furthermore, there is a round-up function and an automated income transfer choice. Customers will have access to a highly-rated mobile app and a large ATM network.

What We Didn't Like

In order to earn that high rate, though, you'll require to receive a minimum of $1,000 in regular monthly direct deposits, and you need to end monthly with a positive balance in all your Varo accounts. This might be a dealbreaker for some, consisting of students working part-time. Additionally, you'll make simply an APY of simply 2.50% on balances higher than $5,000.

Who It's Best For

Young workers will take advantage of the low costs and minimums, along with high yields on low balances. They'll also have the ability to utilize cost savings tools developed right into their accounts, without any costs attached, a strong mobile app and practical features for set-it-and-forget-it conserving.

You'll make 2.50% or 5.00% on balances approximately $5,000, and 2.50% on balances higher than that, if you receive a minimum of $1,000 in direct deposits every month and have a positive balance in your Varo Checking Account and Varo Cost Savings account.

You'll need to open the Varo Bank Account, which is its bank account, in order to have the ability to open the high-yield savings account. You can open the accounts through the Varo app.

There are no charges or minimums to open an account, though Varo can close a savings account if it has no balance for nine months.

If the account is overdrafted, the transaction will be declined by the bank. Any negative balance will need to be covered right away.

You can opt into Varo's cost savings programs, that include Save Your Modification (the app's roundup feature) and Save Your Pay (the automated income transfer program).

Varo Bank is FDIC guaranteed.

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