Where to Find the Best Interest Rates on Savings

I am not much of a “rate chaser.” However, because I lean towards a fairly conservative investment strategy (growing even more conservative thanks to recent volatility), I keep an eye on interest rates for savings account, CDs, etc. Looking for the best interest rates on savings these days does not normally yield anything worth writing home about.

Lending Club (9.65%)

If you have a slightly stronger stomach for risk, and like to have more control over exactly what your investment dollars are in, give Lending Club a try. I have a small portfolio of loans there earning about 10.90%.

Smarty Pig Savings Account (2.15% APY)

Smarty Pig has revolutionized online savings by combining aspects of online banking and social networking. Well, that is, if you want your banking to be social (you can opt not to share info or accept contributions). One of the options you have with your Smarty Pig online savings account is the ability to receive “contributions” from your friends and family. For instance, let’s say you are heading off to school and need some help buying books. You could create a “Textbooks” goal and choose to accept contributions. Friends and family could “feed your piggy” ever so often without having to send you cash directly. It’s a great concept, and a great rate, too!

Local Money Market Accounts

In addition to these online savings accounts, don’t forget to check out your local bank or credit union. Often times, these smaller institutions will run some nice incentives, particularly if you have a good amount of money saved (like a six-month emergency fund).

Our local bank recently had a 6-month promotion on their money market account – offering 2.25% APY on balances over $2,500. The promotion was so successful, they continued it for another six months.

*Rates current as of 08/03/2010 and are subject to change

Comments

  1. Instead of chasing yields on savings accounts/CDs/Money market accounts, an alternative is to open an account at a discount broker and buy into bond funds.
    I’m not endorsing the companies or products, but opening a Zecco account and buying into AGG or BND will net you around 3.5% with very little cost, provided you meet the terms.

    • Not a bad idea, Scott. What’s the downside risk of owning such bonds? As an ETF, I suppose there is risk of loss of value much like playing a dividend stock? I’m asking here because I am admittedly ignorant on bonds.

  2. Also, Ally Bank was formerly known as GMAC. Taxpayer dollars bought it a new name, a new marketing campaign and a new lease on life. Perhaps if you invest in it you can get some of your tax dollars back. I’ll steer clear.

    • I have yet to try Smart Pig, but constantly here good things about them. Perhaps I’ll set up a little savings account there and report back with the results.

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