Best Banks That Have the Highest Interest Rates With Savings Accounts?

This is a complete evaluation of banks with the highest interest rates on savings accounts. Given the current economic insecurity, interest rates have been lowered from previous levels. The days of 5% and 6% APYs are over. Now the best rates are in the 2 to 3% range. Even though not the best rates, they are better than nothing, which is most likely what your local bank is giving you now. The banks offering the highest interest rates on savings accounts nowadays are those with the least overhead costs, mainly online banks. With dozens of online banks offering various types of savings accounts it can be a tedious task finding the right one for you. Here is a list of some online banks that have the highest interest rates on savings accounts.

Everbank has a very attractive first year rate and give a 2.51% three month bonus rate with a 1.77% APY after that for accounts holding up to $50,000. The 2.51% rate is higher than most others and it helps the follow-up rate remain competitive. Everbank has one of the best rates for savings accounts available and they have been FDIC insured since 1998.

Ally Bank is a component of GMAC Financial Services and has been FDIC insured since 2004. With high rates on savings accounts and no minimum balance, they also have no monthly fees. Ally Bank is rapidly becoming a widely accepted bank. One of the really inventive products they put forward is a no-penalty CD. If you close your CD early, you will not be penalized. It’s certainly worth looking into, particularly with attractive rates on savings accounts.

ING Direct is the online banking division of ING Group and perhaps the one online bank that has been around the longest. They have been FDIC insured since 2000. ING Direct’s online account access features are most likely one of the best. Although, their savings account interest rates are not the highest their CD rates make up for it and are very competitive.

HSBC Direct was rated third Best Overall Online Bank by Kiplinger’s Personal Finance in 2006. The 1.55%, interest rate may not be as high as some of the other banks, but still relatively high. The bare minimum amount to qualify for this rate is only $1.

Before you decide to place your savings into a high interest rate account, make sure the bank you chose is FDIC insured. This not only guarantees you money, it insures that your new bank is legitimate. One thing you should look out for with some high yield savings accounts are hidden fees. Some banks will offer high interest rate while they charge fees to make up for it. The banks on this list are legitimate and have no hidden fees.