Compare Highest Yield Savings Accounts

With interest rates back on the rise it is now time to start putting your money with the bank that offers the best rates.  There are many banks that claim to offer the highest money market rates or savings rates but there are only a few that stay consistent.  When you are comparing money market or savings rates you want to make sure that you get the absolute highest interest but with no fees that some traditional banks try to impose. 

$100,000 Rule:  We suggest if you have more than $100,000 to invest then you send this amount in each of these so they will be FDIC insured.  Beware also that some online and walk-in banks have fees or lower interest if you put in more than $100k in your account.  None of these banks listed below have any of these rules but offer plain and simple guidelines.

Top 8 high interest yielding accounts:

1. Washington Mutual is still the best bank even after the rate cuts and has also gradually lowered it's high yield savings to 3.30% APY. Wamu known for their free checking (yes, really free) brings you a no-hassle high interest savings account. I have been with Washington Mutual for over a year now and they have been the best bank I have worked with in recent years. Much better than a only-internet bank such as Emigrant Direct who has a lower rate 2.75% APY and lacks at important things such as transfers.
2. HSBC Direct, the absolute highest rate at this time with a great site to work with and a name you can trust.  Household bank also has great credit cards as well.  Advantages: One of the highest consistent rates, high security.  Disadvantages:  to make transfers you must use your mouse to type in another security password which is a big hassle and hard to get right (but this can also be a good thing for the id theft paranoid people).  Current Rate: 3.50% APY.
3. WT Direct - owned by Wilmington Trust they offer a rate they can prove since they have offered it for several months and it is no promo rate @ 3.26% APY. If you have lots of money this is the account for you because they do not decrease your interest if you have over $100,000 in your account like some banks pull on the consumer. Keep in mind this is a high interest savings account so you will have your typical maximums on withdrawals and minimums on account balance of $10,000. Impressive is that you get this high rate without having to open a checking account or without limits on linked accounts. This WT Direcct rate continues to be in the top 5% of all banks. 
4. ING Direct.  This is the company that says no to “too much customer service” but they also have no fees.  This is an account for depositing your left over money after $100,000 is already deposited in HSBC and Emigrant. Current rates are 3.00% APY Orange Savings and up to 4.00% on Orange Checking accounts.
5. FNBO Direct is offering 3.40% on FDIC-insured savings accounts. You must keep $500.00 to maintain the high interest rate.
6. Emigrant Direct, they are consistently the highest or 2nd highest savings account online.   Advantages: No Fees,  Higher paying APR than most banks including online banks.  Disadvantages:  They only allow you to setup a few bank accounts to transfer money.  (Emigrant Direct is supposed to be changing their site soon so that change may be coming as well.)  Current Rate: 2.75% APY.
7. Capital One - The "What's in your Wallet" bank Capital One offers a Direct Banking product that pays 3.00% APY even after the recent Fed Rate cuts.
8. Citibank, they have the name that everyone can trust but were late to the game so a lot of people do not realize they now pay high interest on new e-savings accounts.  Advantages: You can walk into a Citibank and use their ATMs for free  Disadvantages:  You must open up a Citibank checking account to get the high interest rate offered on an e-Savings account.  Current Rate: 4.00% APY.  Offer code: CSAX.

Honorable Mentions for High Yield Interest Accounts:

You may also try Virtual Bank, Netbank, and E*Trade Bank for promotional high yield savings accounts. Countrywide Bank has a high yield savings account worth checking out but I would make sure it's not just a promotional rate. For more information on the Citibank eSavings account click here.

Everbank Checking (yes, checking).  This is to be used as a promo offer and get their high checking rate which pays higher than most money market rates or savings account rates.  Get in on the offer for three months then move your money to one of the 4 accounts listed above.  You won’t regret the extra cash in your account.

If you have over 100,000 to invest and want to go somewhere besides our top five high interest accounts you may want to try these banks:

1. E-Loan - They are claiming to offer a 5.50% APY (5.36% Rate) on a $5,000 balance. This may be a promo for a few months and then go back to the normal rate. This was the highest rate listed on Bankrate as of 10/24/06. We recommend Citibank (above) or Washington Mutual since they have been in the banking business longer.

2. AmTrust Direct - These commercials are all over CNBC lately. Minimum balance is $1,000 to open but no fees for minimum balances. The e-money market account rate from AmTrust Direct is 5.30% APY (5.175% Rate). I do not see any maximums for this e-money market account.

Learn More about high yield savings accounts and interest checking. Find out which one is best for you and your family by comparing the amount you will fund the account, how many checks you plan on writing against the account, and the daily minimum balances required to earn interest. Also, learn about what banks have no ATM fees.

Are high interest savings a risk?

Make sure you check that your bank is listed with the FDIC. Furthermore, make sure that you investigate each banking site before making an investment since the rates have been changing on a daily basis with the latest FED rate cuts.

Do you mind keeping a more non-liquid account?

Try bank certificates of deposit which look attractive with lower bank rates where you can keep the money in your account for a longer term and make more in interest.