Do 7% interest savings accounts exist anymore?

Core Insights - The availability of 7% APY savings accounts is extremely limited, with most high-yield accounts offering around 3% to 4% APY due to changes in the Federal Reserve's federal funds rate [1][2] Group 1: Federal Reserve Actions - The Federal Reserve initiated aggressive rate hikes starting in 2022 to combat post-pandemic inflation, which led to an increase in deposit account rates [2] - With inflation now under control, the Fed is expected to continue cutting rates, which will likely result in further reductions in bank deposit rates [2][3] Group 2: Current Interest Rates - Interest rates for variable financial accounts, including checking and savings accounts, have decreased alongside the federal funds rate and are expected to decline further [3] - The national average interest rate for savings accounts is currently at just 0.4%, highlighting the need for consumers to shop around for better rates [3] Group 3: High-Interest Accounts - Banks offering 7% APY accounts are rare, and when available, the high rates often apply only to a limited portion of the deposit, with specific requirements to qualify [4][5] - For example, BCU requires $3,000 in qualifying deposits each month to earn an 8% rate, which significantly drops after three months [5] Group 4: Alternatives and Strategies - Although 7% APY accounts are largely unavailable, maintaining savings in FDIC- or NCUA-insured accounts is crucial for sound financial management [6] - Strategies to maximize interest earnings include enrolling in eStatements, completing a minimum number of debit transactions, and maintaining a minimum balance [6][7] - For different savings goals, options include high-yield checking accounts for daily spending, high-yield savings or money market accounts for emergency savings, and CDs or Treasury bills for short- to mid-term savings [7]