You can get 5% interest on your money from high-yield savings accounts, certificates of deposit (CDs), and money market accounts, and you could get a 5% return from equity investments. These options have varying risk levels, so assessing your tolerance before making any investment decisions is important.
Below, you’ll find examples of financial products across asset classes that all yield over 5%.
Examples of Where to Get 5% Interest on Your Money
| Financial Product | APY |
| High Yield Savings Account (DCU) | 6.17% |
| 10-18 Month CDs (Charles Schwab) | 5.60% |
| Money Market Account (CFG Bank) | 5.17% |
| U.S. Treasury Bill – 1 Month | 5.38% |
| S&P 500 Index Fund | 9.82%* |
*The average annualized return of the S&P 500 since its inception in 1928 through December 2022 is 9.82%.
Interest rates fluctuate based on the Fed Funds rate which averaged 5% from 1971 to 2023, reaching a record high of 22.4% in 1981 and a low of 0.04% in 2011-12 and 2020.
A 5% APY for high-yield savings accounts, certificates of deposit, money market accounts and U.S. Treasuries is very common right now with the Fed Funds rate between 5.25%-5.50%. The Fed Funds rate determines the cost of borrowing for banks and affects how much financial institutions offer investors.
Where Your Money Can Earn a 5% APY
High-Yield Savings Accounts: Online banks and other financial institutions offer high-yield savings accounts that pay out far more interest than their traditional brick-and-mortar counterparts. According to WalletHub's Banking Landscape Report, online-only personal savings accounts yield 6.4 times as much as accounts from branch-based financial institutions.
Certificates of Deposit (CDs): CDs are time-bound accounts. When you deposit your money into a CD, you agree not to withdraw the funds for a specific period of time, ranging from a few months to several years. The interest rates on CDs are typically higher than rates on regular savings accounts.
Money Market Accounts (MMAs): MMAs are similar to savings accounts but often offer higher interest rates. They may have certain restrictions, such as high minimum balance requirements and limited withdrawals.
Treasury Securities: Government bonds, like U.S. Treasuries, are considered low-risk investments and can provide a fixed interest rate over a set period of time.
Equity Investments: While equities do not have a fixed interest rate, they can provide regular income depending on the company's profitability. When you invest in equities, you can grow your money from dividend payments and price appreciation. Additionally, equity index funds offer diversification by mirroring the performance of a group of stocks, which reduces your risk.
This answer was first published on 08/18/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
