Following the Fed Reserve’s recent rate cut, banks have been slashing their savings account rates. Just a few months ago, you could find dozens of high-yield savings accounts that paid 5% APY or higher. Now, rates this high are rare.

However, you aren’t out of luck if you’re looking to earn 5% or more on your savings account balance. Openbank (a digital banking division of Santander Bank) currently offers a high-yield savings account with 5.25% APY and no fees or minimum balance requirements.

Openbank's high-yield savings account details

• APY: 5.25%

• Minimum opening deposit: $500

• Minimum balance requirement: None

• Monthly maintenance fee: $0

Openbank’s high-yield savings account offers an impressive 5.25% APY — more than 11 times the national average and one of the highest rates currently on the market. There are also no minimum balance requirements. All you need to open an account is a minimum opening deposit of $500.

As an added bonus, there are no fees for monthly account maintenance, wire transfers, or ACH stop payments. This account also offers biometric authentication for your account as an added layer of security.

Keep in mind that this account’s interest rate is variable, meaning the bank may change the rate at any time. Before opening an account, verify the interest rate and account details with the bank.

How to open an account

To open a high-yield savings account with Openbank, you must be at least 18 years old and must not already have an open deposit account with Santander Bank’s retail branch network. You must also not be a current lending customer of Santander Bank, N.A., regardless of where you reside.

Additionally, you must be a U.S. Citizen or U.S. Resident Alien with a valid U.S. residential address. Your home ZIP code must be within Openbank’s current service area, which is every state in the U.S. except for Connecticut, Delaware, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island.

Finally, you’ll need an active U.S. mobile phone number, as well as a smart device with face or fingerprint recognition capabilities so you can download and make the most of the Openbank mobile app.

What is Openbank?

Openbank is a fully digital bank that is part of the Santander Group, one of the largest banking institutions in the world. If Openbank hasn’t been on your radar, it’s likely because it’s relatively new to the U.S. market. But rest assured that this digital bank is reputable and FDIC-insured up to the federal limit of $250,000 per institution, per depositor, per ownership category. (Note that any insured deposits at Openbank would be combined with your insured deposits at Santander Bank, N.A. — per owner, per ownership category — to calculate your total insurable deposits.)

Note that Openbank currently offers one banking product: its high-yield savings account.

Openbank’s mobile app is available for download on the App Store and Google Play and has an average rating of 4.6 and 2.1 stars, respectively. Customers can use the app to check account balances, move money between accounts, contact a customer service representative, and more.

Savings accounts that pay 5% APY and up

Openbank isn’t the only financial institution that currently offers over 5% APY on a savings account. Most institutions that do are online banks, as well as some credit unions. However, there may be additional restrictions to earn the highest advertised rate, such as larger minimum opening deposit or minimum deposit requirements.

Here are some examples of additional high-yield savings accounts to consider:

• Digital Federal Credit Union Primary Savings Account: 6.17% APY (balances up to $1,000)

• LendingClub LevelUp Savings: 5.30% APY

• BrioDirect High-Yield Savings Account: 5.15% APY

• Western Alliance Bank: 5.11% APY

• Primis Personal Savings Account: 5.07% APY

Learn more: Savings accounts that pay 5% APY or higher (updated weekly)