This Bank Offers a 10% APY Savings Account. Is It Legit?
KEY POINTS
- The Community Financial Credit Union High Yield Savings account pays an APY of up to 10.00% -- but it comes with a big catch.
- Most people are better off putting their savings in a high-yield savings account that doesn't have CFCU's restrictions.
Today's best high-yield savings accounts offer APYs ranging from about 3.70% to 4.50%. That's a solid interest rate for the safest type of account there is.
So when I saw a savings account offering an APY of 10.00%, I thought it must be too good to be true. And it is -- sort of.
The 10% APY is real -- but there are two big catches
Community Financial Credit Union's High Yield Savings account pays an APY of 10.00%, but only on balances up to $1,000. Any deposits above that amount earn 0.10% -- less than one-quarter the national average savings account APY.
On top of that, Community Financial Credit Union serves "anyone who resides, works, attends school, or worships in the state of Michigan," as well as anyone who's an immediate family member of an existing customer. If you don't meet those criteria, then you probably can't open a CFCU account.
Our Picks for the Best High-Yield Savings Accounts of 2025
| Product | APY | Min. to Earn | |
American Express® High Yield Savings
Member FDIC.
APY
3.70%
Rate info
3.70% annual percentage yield as of April 17, 2025. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.70%
Rate info
3.70% annual percentage yield as of April 17, 2025. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
CIT Platinum Savings
Member FDIC.
APY
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn
$100 to open account, $5,000+ for max APY
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
|
$100 to open account, $5,000+ for max APY
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
Barclays Tiered Savings
Member FDIC.
APY
4.10%
Rate info
Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%.
Min. to earn
$0
Open Account for Barclays Tiered Savings
On Barclays' Secure Website. |
4.10%
Rate info
Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%.
|
$0
|
Open Account for Barclays Tiered Savings
On Barclays' Secure Website. |
Want to earn 10 times the national average APY? Check out our list of the best high-yield savings accounts and open a new account today.
There may be similar offers in your state
CFCU isn't the only credit union that offers high-yield savings accounts to residents of particular states. For example, Digital Federal Credit Union pays an APY of 6.17% on balances up to $1,000 -- but it mainly serves people who live or work in certain areas of Massachusetts and New Hampshire.
You might be able to find a credit union that's based in your state and offers a high APY on your first $500 to $1,000 in savings. But that doesn't mean you should open an account.
There are banks that pay over 4% on all your savings
If you qualify for a CFCU High Yield Savings account, and you deposit $1,000 or less, then it's a pretty great deal. There are no fees, and you only need to deposit $5 or more to open an account.
Beyond that first $1,000, however, you're going to earn a rock-bottom APY.
Let's say you have $10,000 in savings. If you put it all in the CFCU High Yield Savings account, you'd earn about $656 in interest in five years.
If you instead put that $10,000 in an account paying an APY of 4.00% on your full balance, you'd earn $2,167 in five years -- more than three times as much.
And the bigger your bank account balance, the worse that limited 10.00% APY looks. Even certain checking accounts might earn you more interest in the long run.
Don't just chase the highest APY you can find
When you're looking for a new savings account, make sure it meets all your needs. A high APY is important, but read the fine print and also look for things like:
- Good customer service
- An easy-to-use mobile app and website
- Low fees
- A good checking account (since you'll probably want to link one to your savings account)
The best banks have all the above and more.
Our Research Expert
Managing editor for Motley Fool Money. James has worked full-time for The Motley Fool since 2012. A longtime editor and former reporter, James oversees the production and quality of Motley Fool Money's editorial content.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.