It has been difficult to keep track of which financial institution has the best interest rates on deposits. So periodically, I will post a list of the annual percentage yields (APYs) for institutions that I have accounts at, or have otherwise mentioned in my blog. These rates are sorted by APY:
2.05% Ally Bank Online Savings
2.05% Shorebank Direct Online High-Yield Savings
1.80% Umbrellabank Pot O' Gold Money Market
1.55% HSBCDirect Online Savings
1.50% Citibank Ultimate Money
1.50% Bank of America SavingsLink**
1.50% ING Direct Orange Savings
1.40% Citibank Ultimate Savings
1.00% Guaranty Bank Gold Rewards Money Market
0.95% E*TRADE Complete Savings
0.75% Chase (formerly WaMu) Online Savings
0.75% Western FCU Money Market
0.14% PayPal Money Market*
*Note that the PayPal Money Market fund is NOT FDIC insured.
**SavingsLink account is no longer offered to new customers.
Rates are believed to be accurate as of 6/15/09. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list.
I think that the big news is that there are banks that still offer higher interest rates, but you really have to seek out these banks. A note about Ally Bank
Historically, money market funds (offered through brokerages) have paid a higher interest rate than their counterparts at commercial banks. However, this situation has reversed itself, and the money market funds are now at the bottom of the list. Money market funds are NOT insured by the FDIC. However, money market accounts offered through banks are.
DC