Highest Interest Rates

AARP Financial Savings Center cut the rates today on both its High Yield Savings account and its Jumbo Secure Money Market account. The new yield is 4.05% APY for both. The Jumbo MMA yield had been 4.75% APY, and the savings account yield had been 4.50% APY. The new rate will only apply to accounts opened from today. Those who had accounts opened prior to today are still getting the old yields. They will be grandfathered in for now, but there’s no guarantee how long this will last.

Account Features:

The savings account and money market account share the following features:

• AARP membership is required
• Initial funding can be done by check or wire transfer
• Wire transfers: free incoming, $20 outgoing
• ACH transfers cost $2 via MoneyHQ service for incoming and outgoing
• MoneyHQ ACH in/out transfers limited to $5K/day and $35K/mo
• ATM card with $4.50/mo in reimbursements
• Only a soft credit pull

Savings Account features:

• $1 minimum opening deposit
• No monthly service charges

Money Market Account features:

• $200 minimum opening deposit
• $10/mo fee if balance falls under $200
• Check writing

Interest Checking Account features:

• $50 minimum initial deposit
• No monthly service fees for balances over $25
• First 25 online bill payments per month are free
• ATM card with $6/mo in reimbursements

Countrywide Bank has recently raised their long term CD rates by several basis points. All CDs over 18 months have been increased. 18 month CDs now yield 4.10% APY, while 3-5 year CDs yield 4.50% APY, some of the highest rates available. Countrywide CD’s all have a $10,000 minimum balance and are FDIC insured up to $100,000.

• 91 days of interest early withdrawal penalty for terms under 12 months
• 180 days of interest early withdrawal penalty for terms of 12 to 60 months
• Grace period at maturity when you can close without penalty is 10 calendar days
• No hard credit inquiries for opening CDs or savings accounts
• CD funding options: mail a check, wire transfer, or drop off check at a CW financial center

Countrywide has had its share of subprime mortgage problems recently, and it’s slated to be bought out by Bank of America. However, with continually deteriorating credit conditions, it would be wise to keep your deposits less than the FDIC insured amount.

E*Trade Financial currently has a pretty high savings rate on their complete savings account, with a 3.45% 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.

WTDirect is now offering a highly competitive 3.31% APY on their high yield online savings account. The minimum balance required for this rate is $10,000; any balances from $1-$10,000 will earn 3.31% APY for the first 60 days. If your balance is lower than $10,000 after the first 60 days, the interest rate drops to a low 0.60% APY. Here are some of the account’s features:

• No minimum balance fees or online transfer fees
• No hard credit pull when opening your account
• 6 free transfers are available per month
• Allowed an unlimited amount of linked external accounts
• Transfers typically take 3-5 business days
• Interest continues to accrue until the funds actually leave your account
• Interest is compounded daily and will be credited to your savings account monthly
• The daily balance method is used to calculate interest on your account

WTDirect has FDIC insurance on every account with Wilmington Trust FSB, which protects your money up to $100,000 per depositor. Bankrate.com has given WT Direct a review of 4/5, which is a safe and sound rating. For more information, call their customer service hotline at 1-800-WTDIRECT or visit their savings account website here.

Capital One Direct Banking is currently offering a rate of 3.10% APY* on their Capital One Direct Banking High Yield Money Market accounts. Capital One Direct Banking High Yield Money Market Account rates are historically among the best in the nation. The account offers hassle-free access to your money and the security of FDIC insurance.

This account has no minimum balances, and no extra fees or requirements. Make the smart choice – open a Capital One Direct Banking High Yield Money Market Account. Opening a new account is fairly straightforward and simple. There are four ways to make your initial deposit: check, wire, ACH, and internal transfer from an existing capital one account. This money market account is a great way for you to maintain some liquidity while earning a great rate on your money.

Eloan.com currently has high interest rates available on their savings and certificate of deposits. Their savings account yields 5.25% APY, and is a great way to maintain liquidity while earning a high yield on your money. They also have some of the highest CD rates available, with a 5.55% APY on their 3 month CD. Minimum deposit for all CDs is $10,000; there is no minimum for the savings account.

Eloan is FDIC insured.

Wells Fargo is currently offering a 4.90% APY CD rate on their 5 month certificates of deposit. As a whole, Wells Fargo CD rates are not really the highest rates available, as many other online banks offer higher rates. However, with the recent credit problems and many banks facing loan defaults, one might sleep better at night with a safe bank such as Wells Fargo or Bank of America. Minimum deposit required for this rate is $5,000. The CD rate table is available at the Wells Fargo website.

UmbrellaBank recently introduced the Green Day Savings account, which features a 5.83% 90-Day intro rate (which equals an annual percentage yield of 6%).

For those who are looking for a place for their funds after the FNBO Direct 6% offer ends, this may not be it. UmbrellaBank is listing this as a limited time offer and based on the last promotion they ran, it may not be offered for long. However, people who have not yet grabbed FNBO Direct’s promotion may want to take this offer to get a full 90 days of 6% apy.

After the promo rate ends, the yields sink to rather unimpressive levels when compared to other online savings accounts. Balances up to $25,000 earn 4.68% annual percentage yield (apy), $25,000 to $74,000 earn 4.87% apy, and $75,000 and over earn 5.06% apy.

If you plan on taking this promo offer now and jumping ship after it ends, beware of UmbrellaBank’s early closing fees which is $30 if closed within 90 days of opening.

Features on the Green Day Savings account include::

• $100 initial minimum deposit
• A service fee of $7.00 will be imposed if the balance in the account falls below the $100 minimum at any time during the monthly statement cycle.
• Online Statements
• Free Direct Deposit
• Free Recurring ACH transfers from your checking account
• ATM card issued upon request
• Limited to 6 non-ATM transactions per month.
• If the account exceeds six transfers in a statement cycle, a fee of $2.50 will be imposed per transfer
• Interest is compounded daily and credited monthly
• Account history can be downloaded into Quicken® or Microsoft® Money
• No hard credit pull when opening the account

Washington Mutual has one of the best bank deals available: a combination of their free checking and their new 3.30% APY savings account allows you to combine the convenience of local branches and ATMs with the high interest rate yield and online transfers of online banking.

WaMu Free Checking:

• No minimum balance or direct deposit requirements, open with $1
• Free basic checks for life
• No ATM fees on their end
• One free overdraft per year
• Free outgoing wire transfers.

The Statement Savings account has:

• A competitive 3.30% APY on all balances (rate only available online)
• No minimum balance requirements, open with $1
• Instant transfer to/from the Free Checking

If you already have a checking account with Washington Mutual, you will have to open a new checking account to take advantage of this bank deal. You can just go ahead and close your old one.

Overall, while this isn’t necessarily the highest interest rate available, the account’s lack of fees and relative convenience if you already bank with WaMu helps make this a great bank deal. You can deposit checks directly into the 3.30% APY savings account at an ATM, maximizing interest. From there you can move money into the checking account instantly online as you need it, with a limit of 6 transfers a month. In addition, you can access your account at any of Washington Mutual’s large network of ATMs.

In addition, Washington Mutual offers free online fund transfers that allows you to link your account to external accounts using a routing number and account number. A soft credit pull is done when you sign up for the account, allowing you to avoid the ding from a hard credit pull. For more information, visit Washington Mutual’s savings account signup page.

The new internet bank iGObanking.com recently launched a no-minimum 5.30% APY online savings account. It looks very similar to the typical no-minimum savings account that’s offered by EmigrantDirect, HSBC Direct and ING Direct. With an APY of 5.30%, it’s now the highest rate for a savings account that has neither a minimum for opening or a minimum balance.

iGobanking.com is a division of Flushing Savings Bank, FSB so deposits are FDIC insurd. Bankrate.com’s review gives it a 4/5 star rating.