Are you earning the most from your savings and money market deposit accounts? These accounts are the main pillars of a strong financial foundation, providing you with financial stability and helping you achieve your financial goals. Many banks and credit unions offer these accounts, and this article aims to help you find the highest interest rate for this type of deposit accounts. Of course, a high interest rate is not the only factor to consider when selecting a savings or a money market account, and here is an article to help you choose the best deposit account for your specific needs.
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Finding the best savings account rate is a simple matter of looking in the right places for the answer you’re looking for. However, looking at individual bank site or visiting physical branches could be time consuming. The good news is that there are some sites that aggregate interest rate data to help you find the best rate.
However, remember that the best interest rate is not the only factor; you should consider the fees and make sure that you maximize your earnings and convenience with your savings.
The following information was last reviewed and updated on May 16, 2013. Rates and conditions change constantly, so please review the information at the bank’s website carefully before you open an account. All banks are FDIC insured.
|0.84%||Ally Bank High Yield Savings Account offers competitive rate of 0.84% APY and easy access with no minimum balance and no monthly fees. Ally was rated “Best Bank” by Money Magazine in 2012.|
|0.75%||Capital One 360 Savings 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.|
|1.01%||Everbank Yield Pledge® Money Market Account offers 1.25% bonus rate for the first 6 months, or 1.01% APY for the first year on a balance up to $50,000.|
|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%||CIT Savings Account offers 0.90% APY interest rate, or 1.00% APY when you maintain a daily balance of $25,000 or more. No account-opening or monthly maintenance fees. Your interest is compounded daily to maximize your earning potential.|
|0.90%||Barclays Online Savings. No minimum balances. No monthly maintenance fees. Daily compounding. Also offers CDs.|
|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%||American Express Personal Savings. No Fees. No Minimums. 24/7 Account Access. Also offers CDs.|
|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.|
|0.76%||TIAA Direct High Yield Savings has no monthly fee and no minimum balance. TIAA DirectSM is a division of TIAA-CREF Trust Company, FSB.|
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In addition to high yield savings and money market accounts, here are some alternatives that may work for you.
|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 Introduction to Peer-to-Peer Lending. You can also check out a similar service from Prosper.
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.|
|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.|
|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.|
If you know a bank that offers a higher rate than the ones above, please leave a comment below.
When selecting a savings account, determine the features that are most important to you. For example, you may order the features as follow: high interest rates, good customer service, low fees structure, and good reputation.
An online savings account is becoming more popular each day. Typically, you have to do most of your transactions online or using the ATM. In exchange, you get to enjoy a higher interest rate than normal and pay lower fees.
When selecting a bank, make sure that it is FDIC insured. The Federal government offer 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.
FDIC insurance covers all deposit accounts, including savings account, money market account, certificate of deposit (CD), and checking account.
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.