By cof2m Earning 5 percent interest on your money sounds risky, but in 2025 it is possible to reach 5 percent or more using safe, regulated financial products. The key is choosing accounts that offer high returns without exposing you to unnecessary risk.
This guide explains the safest ways to earn around 5 percent interest in the US, UK, and Canada, plus how to choose the best option for your situation.
What Does 5 Percent Interest Actually Mean?
A 5 percent annual return means your money can grow significantly faster than in a traditional savings account.
For example:
- 10000 saved at 0.10 percent grows to 10010
- 10000 saved at 5 percent grows to 10500
To see your own projections, use this calculator:
https://wealthcompare.net/savings-calculator/
The goal is to earn a high return while keeping your money protected by deposit insurance or low-risk structures.
Best Safe Ways to Earn 5 Percent Interest in 2025
Here are the most reliable and low-risk ways to earn around 5 percent in the US, UK, and Canada.
1. High-Yield Savings Accounts (HYSAs)
Some online banks in 2025 offer promotional APYs close to 5 percent, especially for new customers.
Benefits:
- FDIC, FSCS, or CDIC protection
- No long-term commitment
- Easy withdrawals
- Perfect for emergency funds
Always check for:
- Whether the rate is a promo
- Balance limits
- Fee requirements
2. Money Market Accounts or Money Market Funds
Money market accounts (MMAs) from regulated banks are insured and may offer rates close to 5 percent.
Money market funds (MMFs) are not insured but are historically low-risk.
Use an interest calculator to compare potential growth:
https://wealthcompare.net/savings-calculator/
3. Short-Term Fixed Deposits or Term Accounts
Short-term deposits (3 to 12 months) may pay 4 to 5 percent in 2025, depending on the country and bank.
Pros:
- Locked-in guaranteed rate
- Low risk
- FDIC, FSCS, or CDIC backed
Cons:
- Money is locked during the term
- Early withdrawal penalties
4. Treasury Bills and Government Bonds
Government securities are considered very safe.
United States
Short-term Treasury bills often pay competitive yields around 4 to 5 percent.
United Kingdom
Gilts offer safe returns, especially shorter maturity options.
Canada
Government of Canada Treasury Bills offer strong yields with minimal risk.
These products are excellent for short-term safe growth.
5. High-Interest Savings Accounts (HISAs) From Online Banks
Canada and the UK have many digital-only banks offering high rates.
Benefits:
- Fast onboarding
- Strong interest
- No physical branch fees
Always confirm deposit insurance:
- CDIC in Canada
- FSCS in the UK
6. Reward Checking Accounts
Some US and UK banks offer checking accounts with 3 to 6 percent APY if you meet conditions like:
- Direct deposit
- Debit card usage
- Minimum transactions
These rates apply up to a certain balance limit, so read the terms carefully.
7. Credit Union High-Interest Promotions
Credit unions often run limited-time high-rate offers.
Advantages:
- Member-focused institutions
- Strong deposit insurance
- Local customer support
Check potential fees using this tool:
https://wealthcompare.net/bank-fee-optimizer/
8. Certificates of Deposit (CDs) or Fixed-Term Bonds
CDs in the US or fixed-term savings in the UK and Canada can offer close to 5 percent interest.
These are best when:
- You do not need the money immediately
- You want guaranteed returns
- You want a safe alternative to regular savings accounts
Is Earning 5 Percent Risk Free?
Earning 5 percent safely is possible, but not every option is risk free. Always check:
- Is the product covered by FDIC, FSCS, or CDIC?
- Is the interest rate guaranteed or variable?
- Are there withdrawal restrictions?
- Is it a promotional rate that expires soon?
Products with deposit insurance are the safest.
How Much Can You Really Earn at 5 Percent?
Here are simple examples:
- 5000 at 5 percent = 5250 after one year
- 10000 at 5 percent = 10500
- 20000 at 5 percent = 21000
Calculate your own returns using the savings calculator:
https://wealthcompare.net/savings-calculator/
Should You Pay Off Debt Before Chasing 5 Percent?
If you have credit card debt with high interest (15 to 25 percent), you will save more money by paying down debt first.
Use this tool to see how fast you can pay it off:
https://wealthcompare.net/debt-payoff-visualizer/
A balanced approach:
- Keep a small emergency fund earning interest
- Use extra money to reduce high-interest debt
Final Thoughts
Earning 5 percent interest safely in 2025 is absolutely possible through a mix of high-yield accounts, fixed deposits, treasury bills, and digital-bank promotions. The key is choosing options that protect your money while still giving you strong returns.
Always compare interest rates, insurance coverage, withdrawal rules, and promotional details before choosing the right account.
If you want to explore decisions based on your financial habits, use the credit score estimator or savings calculator to guide your next steps.