Best Banks with the Highest Interest Rate for Savings Account

Are you earning the most from your savings and money market deposit accounts? Deposit accounts are the pillars of a strong financial foundation, providing you with financial stability as you work to achieve your financial goals. Many banks and credit unions offer a variety of savings and money market accounts, and this article aims to help you find the highest interest rate for this type of deposit account.

Of course, a high interest rate is not the only factor to consider when selecting an account. This article will help you choose the best deposit account for your specific needs.

How to Find the Best Money Market and Savings Interest Rates

Finding the best savings account rate is a simple matter at first glance: Just  look in the right place for what you want. Looking at individual bank site or visiting physical branches is time consuming, so skip the individual search and look online for sites that aggregate the best deposit account rates.

1. Bankrate – Bankrate is a major player in this space. For your convenience, we’ve partnered with Bankrate to provide you with their live data feed. Click the following link to see the top 50 savings and money market accounts.
2. Top Lists – You can check out various “top lists,” such as the one offered below. Top lists typically include online banks that provide higher interest rates than their brick and mortar counterparts.
3. Alternative Options – Last but not least, there are alternatives to traditional savings and money market accounts that could provide competitive interest rates. Just remember that these options are not your typical savings accounts; you have to understand how they work before you decide to commit your money.

Remember that the best interest rate is not the only factor to consider; you should also consider the fees and make sure that you maximize your earnings and convenience with your savings.

Top 10 High Yield Savings Accounts for 2013

The following information was last reviewed and updated on November 13, 2013. Rates and conditions change constantly, so please review the information on the bank’s website carefully before you open an account. All banks are FDIC insured.

Bank	Rate	Review
Editor’s Picks
	0.85%	American Express Personal Savings. No Fees. No Minimums. 24/7 Account Access. Also offers CDs.
	0.75%	Capital One 360 Savings(TM) offer a high 0.75% APY and it is very popular among savers. You can access your account around the clock and open your account online in under 5 minutes.
More Banks
	1.00%	SmartyPig is an FDIC-insured online savings bank where you set up savings goals and put money toward your goals. You can get up to 11% boost by trading your money for a gift card from one of the participating retailers.
	0.90%	GE Capital Bank Online Savings. No minimum deposit to open. No transaction fees. Interest compounded daily, paid monthly.
	0.90%	Barclays Online Savings. No minimum balances. No monthly maintenance fees. Daily compounding. Also offers CDs.
	0.86%	Everbank Yield Pledge® Money Market Account offers 1.10% bonus rate for the first 6 months, or 1.01% APY for the first year on a balance up to $50,000. $1,500 minimum opening balance required. Their fee structure was recently improved.
	0.85%	FNBO Direct Online Savings Account offers 0.85% APY. Open an account with as little as a dollar. No monthly fees. No balance minimums.
	0.85%	Mutual of Omaha Bank Online Money Market requires a $5,000 minimum deposit to open an account. You will gain 24/7 access to free online banking an bill pay services, as well as a nationwide netowrk of free ATMS. Mutual of Omaha Bank is a subsidiary of Mutual of Omaha, the 100-year old insurance leader.
	0.85%	Ally Bank Online Savings Account offers competitive rate of 0.85% APY and easy access with no minimum balance and no monthly fees. Ally was rated “Best Bank” by Money Magazine in 2012.
	0.80%	Discover Bank Online Savings is a product from the same reputable organization that offers the Discover Card. In addition to competitive online savings rate of 0.80%, Discover Bank also offers money market account (0.70% APY), CDs, and IRA CDs.
See Top 50 Banks Table

Alternative Options to Savings and Money Market Accounts

In addition to high yield savings accounts and money market accounts, here are some alternatives that may work for you:

Option	Description
	Certificates of Deposit: Another option to high interest savings is certificate of deposits. There are CDs with term as short as 3 months and as long as 10 years. Generally, longer term CDs pay more than savings, but require long-term commitment.
	High Yield Checking Accounts: Generally, there are more restrictions around high yield checking to be eligible for the best rate. However, it may be worthwhile if you can meet the requirements. Currently, Capital One 360 Checking offers a high yield checking account that pays up to 0.85% plus a $50 sign up bonus.
	Lending Club is a SEC-registered social lending site where you can invest in 3-year and 5-year loans with as little as $25 per loan. The interest rate you earn depends on the quality of the loan (based on borrower’s credit rating, loan amount, loan length, etc.) Currently, Lending Club claims 93% of lenders earn between 6 to 18% APY. To learn more about peer lending, please read LendingClub: My Real Money Peer-to-Peer Lending Portfolio. IMPORTANT: Please note that there are special risks associated with social lending.
	Discount Brokers: Many discount brokers offer a money market account that acts as the default account for fund deposited into your brokerage account. It usually pays some interest (not as high as an online savings account), but a brokerage account also gives you access to other investment opportunities, e.g., income investing in dividend paying stocks.

If you know a bank that offers a higher rate than the ones above, we’d love your insight in the comments.

Frequently Asked Questions and Answers

What is the best way to choose a savings account?

When selecting a savings account, determine the features that are most important to you. For example, you may order the features as follows: high interest rates, good customer service, low fees, and good reputation.

Are online savings accounts better than a traditional one?

Online savings accounts are more popular each day. Typically, you have to complete most of your transactions online or using the ATM, since there may not be brick and mortar locations in the “real” world. In exchange, you enjoy a higher interest rate than normal and pay lower fees.

How does FDIC insurance protect savings accounts?

When selecting a bank, make sure that it is FDIC insured. The federal government offers this insurance to participating banks and it protects your money (up to $250,000 per depositor at each banking institution) against loss in the event that the bank goes out of business.

What does FDIC deposit insurance cover?

FDIC insurance covers all deposit accounts, including savings accounts, money market accounts, certificates of deposit (CDs), and checking accounts.

Please review information associated with each offer before you sign up. Rates and conditions change constantly and I have reported what I believe to be the most accurate information at the time the article was updated.