It is easy to search on the internet for savings accounts which offer the best interest rates. Although they are advertised as high interest savings accounts the description is a joke, as whilst typical credit card rates soar well over 10%, savings accounts are offering yields of less than 2%. Nevertheless you can find the best rates by searching under ‘high interest savings accounts’ to find your meagre returns.
When looking for a savings account always ensure that you use one which is FDIC insured for the maximum of $250,000. This protects your savings if the bank goes bust. Also consider any charges which a bank levies which they typically do on checking accounts which pay interest. As far as savings accounts go you want the highest annual yield fee free, and can choose whether you need your money to be available in a flexible account, or tied up for a set period of time.
It pays to throw your net wider than just local banks as internet banks are actually offering the best rates currently as have fewer overheads. It is a good idea to check both local banks and internet banks to compare the available rates.
Some banks offer higher yields on higher deposits, but none are particularly generous at the moment. The best internet bank for rates which does not call for a minimum balance is the American Express bank. Interest is paid on all deposits at a rate of 1.29% and gives flexible access to your savings. A higher rate is obtainable from the Capital One Bank at 1.34% but this only applies to balances over $1000.
If you prefer to use a certificate of deposit, slightly higher interest rates are available. The Ally Bank pays 1.44% with no minimum deposit and the Aurora Bank FSB pays 1.44% on balances over $1000. These represent the best online rates available.
For those who are looking to obtain interest on their checking accounts the Ing Bank pays 0.25% and has no fees. The highest interest rate on a checking account is the FNBO direct at 1.10% but the account carries fees which offset any interest rate gains.
Savings rates do vary and are often changing so it is always worth checking for the best current offers and to see if there are any promotional interest rates worth snatching up. Online banks are offering the highest yields but do not always provide the same level of customer service as other banks. For a standard savings account to get started with the internet banking offers the best returns.