Highest rate savings accounts

[jteezie]

What's the highest rate savings account you've seen? A high return would be a good place to park an emergency fund.

So, I was walking around and learned about this 3% APY savings account from Wells Fargo. https://www.wellsfargo.com/savings_cds/rates2

I think 3% is quite surprisingly high (with current interest rates). I understand how the company can offer such a service. Savings = M2 money thus they can hold less in reserves. I also think that they plan on people forgetting about the money (as intended) throughout higher inflation times.

But looking at further details, I realized it's just a trap. It isn't as great as it sounds up front. You only earn 3% on the first $500. You need to setup $25/mo transfers and there may be fees associated. Plus rates can change at any time.

[Frugal]

Ha. I get 0.2% with my savings/checking account. This is the best I could find locally.

[skimom]

We have our emergency fund saving in a high interest checking account. Our's is currently earning 3% on the first $30,000. You have to do at least 10 debit card transactions, have 1 auto deposit and get your statement electronically to qualify.

We just use it as our regular checking account too. It is through a local bank, but we have at least 3 banks in our area that offer a similar account.

[LuckyRobin]

I get 1% with ING. It's not much, but there are no qualifications for keeping it there and it's better than the .01% I can get locally.

[photo]

You have to do at least 10 debit card transactions,

What's up with that? A lot of banks seem to have that requirement, but I've never understood why.

[kv968]

What's up with that? A lot of banks seem to have that requirement, but I've never understood why.

They collect a fee from the retailer every time you swipe your card.

[SeanH]

From searching around and looking at checkingfinder, small banks that pay interest tend to have 4 common requirements (1) per cycle some variety of 10-12 debit transactions with their card (2) must receive your statement online (3) frequently require you to do 3 bill pays from their website (4) a payroll deposit. They typically limit the amount the interest is paid on.

[KiwiJo09]

Ha. I get 0.2% with my savings/checking account. This is the best I could find locally.

Don't feel bad. I had to resort to an online bank account. I still mostly use the one at my local bank because transfers are easy. But I get 0.01% interest on my local bank and 1.1% interest with smartypig.

I haven't received a penny of interest in my local bank savings at all. LOL

[Godwynn]

I work at a bank and still have my savings account at ING.

[photo]

They collect a fee from the retailer every time you swipe your card.

Thanks, I should have figured that out. It sounds like the bank is trying to pretend the debit card is a credit card -- not for advancing credit -- but for extracting fees from merchants.

[Eric80]

I would consider looking online for a bank that has on-line only accounts they can offer a better interest rate then the local banks because they have saved monies not interacting with the customer eg no telephone call centre, e-statements.