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