Best Savings Accounts

North Middlesex Bank has one of the best rates on savings accounts with a 2.25% APY. The savings rate is current as of June 10, 2010.

Open a Simply Save account and earn the APY on a minimum balance of $10. Other details of the savings offer include:

• No minimum required to open savings account
• Savings is available as passbook or statement account
• Statement accounts receive quarterly statements
• Must make at least one $50 deposit during each statement cycle to receive the best rate
• $50 deposit must be made in person at a branch
• Savings rate falls to 0.25% of requirements are not met during statement cycle
• Balances above $10,000 earn 0.25% APY

The Simply Save account does not allow ATM, Visa Check Card, Internet banking transactions, or ACH debits. You are limited to one Simply Save account per social security number and three accounts per household. The bank also offers other savings accounts.

You must live within the market that North Middlesex Savings Bank serves to open an account. The independent community bank is based in Ayer, Massachusetts, and has been in business since 1885.

1st Constitution Direct is the online savings bank of 1st Constitution bank. 1st Constitution Direct currently offers 3 products: Direct Savings, Direct Super Savings, and Direct Business Super Savings.

The Direct Savings account features 1.95% on balances $3000 or more, and 1.00% APY on balances under $2,999. $100 minimum deposit to open.

The Direct Super Savings account features 2.00% APY for the first 3 months, and 1.955% APY on balances 10,000 or more, and 1.60% on balances 9,999 or below. $100 minimum deposit to open.

The Direct Business Super Savings account earns 1.95% on balances over $10,000 and 1.60% on balances below 9,999.

All three accounts have variable interest rates that could change at any time. These accounts are available nationally. 1st Constitution Direct is FDIC insured up to $250,000 per depositor. Please leave a comment if you have a review of 1st Constitution Direct’s savings accounts.

Here is a list of some of the top savings rates currently available online:

• 2.15% APY – ShoreBank
• 2.01% APY – SmartyPig
• 2.00% APY – UFB Direct
• 1.85% APY – American Express Bank Savings
• 1.85% APY – Clear Sky Accounts
• 1.80% APY – First Trade Union Bank
• 1.75% APY – Wilshire State Bank
• 1.75% APY – Union Federal Savings
• 1.55% APY – Bank Provident Online Savings
• 1.50% APY – Bank of Amercia
• 1.50% APY – FNBO Direct

Washington Mutual (WAMU) recently raised the rate on their online savings account to 4.00%, which is one of the highest savings rates currently available.

Here are some of the details on this great deal:

• No minimums or fees
• Only a $1 deposit required
• ATM cards are available
• Free checks for life
• Cash back on debit card purchases
• No hard credit pulls

It’s true that WaMu has had some problems recently–this is part of the reason they are offering such great rates. However, WaMu is FDIC insured for the standard $100,000, and if you keep your deposits below 100k you shouldn’t have anything to worry about. I recently opened this account a 3.75% and was pleasantly surprised when they announced an increase to 4.00%.

By opening a savings account instead of a CD, you keep your assets liquid and have them ready if and when you need to make a withdrawal.

HSBC Direct recently raised the rate on their online savings account to 3.50%, which is higher than both E*Trade (3.15%) and Wamu (3.30%). This new rate applies to both new and returning customers.

Here are some of the details:

• No minimums or fees
• Only a $1 deposit required
• The rate is guaranteed through 8/15/2008
• ATM cards are available
• Unlimited links to external accounts
• No hard credit pulls

HSBC is one of the world’s largest and most reputable banks, so losing your money is probably a non-issue. Of course, it’s FDIC insured for the standard $100,000.

Flushing Savings Bank has added a high yield checking account to its online bank, iGObanking.com. Like ING Direct’s Electric Orange and HSBC Direct’s Online Payment Account, it’s a no-minimum checking account without paper checks. Instead of writing checks, you use their online bill pay tool. They also will have a Mastercard debit card for ATMs and for purchases (debit cards are not currently available). Like ING Direct, ATM usage is free through the Allpoint Network. They don’t seem to provide any ATM fee reimbursements if you use other ATMs.

Here’s a summary of the iGOchecking’s features:

• 2.65% APY on balances $1 and up (as of 5/12/08)
• No monthly service fees
• No paper checks
• Free online bill pay
• MasterCard Debit card (available soon)
• ATM usage is free at Allpoint Network ATMs
• $1.50 fee at an domestic out of network ATM
• $3.00 fee at an international out of network ATM
• $1.00 fee for PIN based debit card purchases
• No charge of signature based debit card purchases
• 5 day hold for all deposits

iGObanking.com has maintained a competitive savings account rate since it was launched in 2006. It’s now down to 3.28% APY, but this is still better than many other online banks such as HSBC and ING Direct. iGObanking.com also has a history of competitive CD rates. Currently, the best deal is a 4% APY 24-month CD. The minimum deposit for CDs is $500. Please see their rates page for the latest rates.

Wachovia recently launched a new savings program called Way-2-Save that’s similar to Bank of America’s Keep The Change program and WaMu’s Savings for Success program. Like Keep the Change program, it’s intended to help the average person save. It’s not much of a deal for those with large savings.

Here are the details of this new Way-2-Save savings account:

• Current yield is 5.00% APY
• At the end of the first year, there’s a 5% bonus on the balance (up to $300)
• At the end of the second and third year, there’s a 2% bonus
• Maximum $100 per month transfer is allowed into the account
• Additional $1 deposits into the account happen for every debit card purchase, online bill pay or automated debit transaction
• Only available for personal accounts, not business accounts

Let’s say you do 20 of these debit card and online bill payments a month and you do the maximum $100 per month transfer, you’ll have $1440 in the account at the end of the year ($240 + $1200). So the first year bonus will be $72. This would be on top of the 5% APY that you would be earning during this time.

Their Free Checking does qualify for this account, and you don’t have to open a new one to sign up for this Way-2-Save program. Some things to keep in mind regarding Wachovia’s Free Checking:

• No monthly fees or minimum balance requirements
• Readers have reported a hard credit pull during the application
• Wachovia also does a ChexSystem verification
• Checks are not free but are optional. Prices vary by state.
• Overdraft fee is $35
• A savings account (including Way-2-Save) can be used for overdraft protection

Online banks continue to cut the rates on their savings accounts. The number of accounts with rates above 4% is falling. Provident Direct cut its rate from 4.50% to 3.75% APY. ShoreBank also cut its rate to below 4%. Here is a brief summary of recent rate cuts:

• Provident Direct’s Savings: 3.75% APY (was 4.50%)
• EverBank’s MMA: 4.01% APY 3-month intro (was 4.51%, ongoing remains at 3.51%)
• ShoreBank’s Savings: 3.30% APY (was 4.15%)
• UmbrellaBank’s MMA: 3.75% APY (was 3.90%)
• Zions Bank’s Deseret MMA: 3.41% APY for $1K to $50K / 3.57% APY for $100K+ (was 3.87%/4.03%)
• WaMu’s Online Savings: 3.30% APY (was 3.55%)

You know that high-yield online savings accounts have become mainstream when Citibank offers one. Actually, Citibank, offers three: e-Savings, Ultimate Savings, and Ultimate Money.

The e-Savings Account was Citibank’s first high-yield online savings account. It’s not a stand-alone account, but actually requires customers to have or open a checking account in the Citibank EZ Checking, Citibank Account, Citibank Everything Counts®, or CitiGold® Account relationship package. New checking accounts must be opened at the time of opening the e-Savings Account. The Citibank e-Savings Account must also appear on the same statement as the checking account.

The checking and e-Savings accounts become a relationship package. As long as customers retain the relationship package, it will be free of monthly maintenance charges and per-check fees. If at any time the e-Savings Account is not statement-linked to one of the checking accounts, the e-Savings Account will no longer earn the high yield, but instead will earn interest at the rate then applicable to the Citibank Day-to-Day savings account.

The e-Savings Account has no minimum balance requirement and counts as one of the three products or services required to help you earn ThankYou Points.

Your initial deposit can be funded via a transfer from your current bank account, by using your credit card, or by mailing in a check.

Once your account is open, you can deposit money into your e-Savings account at a Citibank ATM, by visiting a Citibank Financial Center, or by mail. You can also transfer money into your Citibank e-Savings account from an external (non-Citi) account using Citibank’s Inter Institution Transfers.

The e-Savings Account is probably best for those who live near a Citibank branch or ATM machine and who have or intend to use a Citibank checking account. Having a checking and savings account at the same bank makes many things easier such as record keeping, the ability to use on online system for both of your accounts, and faster transfers between the two accounts.

E*Trade Financial currently has a pretty high savings rate on their complete savings account, with a 4.40% APY. This is one of the best savings rates currently available online.

Their savings account features:

• $1 minimum deposit to open account
• No minimums or account fees
• No hard credit inquiry
• Free online ACH transfer system
• 6 withdrawal limits per month
• $100K per day limit on outgoing and incoming ACH transfers
• ACH transfers complete in one business day
• 9 day hold time for initial deposit (ACH or check)
• No hold for wire transfers

You can also sign up for a checking account that features:

• 3.25% APY on balances over $5,000
• Unlimited ATM fee refunds
• Free online bill pay
• Unlimited check writing
• Online check and deposit images

E*Trade has seen some financial problems recently, but as long as you keep your deposits under the FDIC insured limits there should be nothing to worry about. If you already have an account with E*Trade, you can link this new savings account to it. Visit their website for more information.