High yield savings accounts just aren’t what they used to be. A few years ago you could have gotten 3 to 4% on your savings dollars at online banks. Interest rates today are really low and they are at a joke at commercial banks. That is because commercial banks take your business for granted. You might not be able to get 3% at a commercial bank anymore but you can still get a much higher rate than anything that a big bank can offer. Let’s take a look at the best interest rates for your money from high yield savings accounts.
Best Savings Accounts
I only use banks with at a least four star rating for safety and safety of deposits. There is no use placing your money with a fly by night bank that is offering a high rate of interest but has unstable ratings. All of the banks below have been deemed financially stable according to Bankrate.
ING Direct is best of breed when it comes to finding a bank that you can trust with your savings dollars. ING Direct has no account minimum balances, no fees, and a high interest rate compared to commercial banks. ING Direct is always competitive when it comes to interest rates with the bank is paying 1% on its savings account products. ING has a number of good financial products including checking accounts and certificates of deposit.
Discover Bank is a five star rated bank for financial safety. The bank is currently paying its customers 1.10% on all savings accounts. The minimum amount to open an account at Discover is $500. This 1.10% rate is one of the highest rates that I have found especially since the average at commercial banks has dropped to 0.16%. Discover’s rate is nearly seven times the national average. This means that you could be making almost $7 for every $1 that your bank is paying you.
Ally Bank is another five star rated bank that offers no monthly fees and a competitive 1.00% interest rate. The money market account has no minimum deposit requirement and offers the convenience of no ATM fees. I like the Ally Bank no fee model especially since so many traditional banks have gone back to charging fees and requiring minimum deposits again. You also get check writing features with an account at Ally.
Sallie Mae Bank has a four star safety rating and currently pays a high interest rate of 1.15% on its money market account. You probably knew that Sallie Mae offered student loans but had no clue that the financial institution had a bank. A Sallie Mae Bank money market account comes with check writing perks and no minimum balance requirements. Sallie Mae also has a high yield savings account that pays 1.10%.
Colorado Federal Savings Bank
Colorado Federal Savings Bank is another four star rated bank. The bank offers a 1.05% interest rate on all savings accounts. Colorado Federal has a lot of the perks of the other banks but requires a higher minimum balance. The minimum balance requirement of the bank is $2,500.
Nationwide Bank is a four star bank that is paying accountholders 1% on all money market accounts. The minimum to open an account is $1,000. The primary drawback is that there is an $8 monthly fee is you let your balance drop below $1,000.
Savings account interest rates may not be great right now but it is still important to get the best rate of return on your money. Every dollar that you get out of your savings is one less dollar that you have to generate from working.
Photo by: redspotted