The banks that give 7% interest on savings accounts are credit unions like Community Financial Credit Union in Michigan as well as specific checking accounts like BCU PowerPlus, although they also come with strict requirements like requiring high direct deposits or transaction volumes, usually only on a limited balance.
Although for standard savings accounts, you won't find any standard savings accounts or banks that pay % interest or APY.
Although high yield savings accounts like Bread Savings, Axos Bank, Varo Bank and Capital One bank pay good interest rates on savings accounts.
Axos Bank, Bread Savings and Varo Bank pay between 4 % to 5% APY and Capital One 360 Performance Savings pays around 3.40% APY.
The most you should have in a savings account is 3 months to 6 months or even 12 months of your household and living expenses.
You should ideally keep at least 3 months to 6 months worth of your essential living expenses in a savings account to access for emergencies and keep no more than $250,000.00 in a single savings account due to the limit of $250,000.00 per depositor being insured by the FDIC.
FDIC insurance covers up to $250,000.00 per depositor so if the bank were to fail and you had more than $250,000.00 in the savings account with that bank, you could lose the amount over $250,000.00.
Once the 3 months to 6 months of your living expenses are in the savings account then most people say that it's too much to have more than 3 to 6 months or more than 12 months of your living expenses in a savings account.
The rest ideally should be invested if possible for better growth on the money as savings accounts earn less in interest than investments do.
You should start with your emergency fund first and calculate any if your crucial monthly living expenses like rent or mortgage, food costs, insurance, utilities, debt etc and save 3 to 6 times that amount in a high yield savings account.
And if you have unstable income, any dependents or high deductibles, you should aim for the higher end or 6 or more months of your living expenses.
But if your living expenses are lower, you may need less in your savings.
And keep your funds for goals within the next few years, like a down payment in a high yield savings account, as it's accessible and earns more than a basic checking account does.
Once your emergency fund is full, any money beyond your 3 to 6 month living expense cushion in your savings account is better invested to grow your wealth.
And when you have over $250,000.00, you should also consider spreading the excess funds across different banks or investing as the FDIC insurance limit per depositor is $250,000.00.
Investment accounts are best for long term wealth and retirement as well as major goals.