Best Savings Accounts

Everbank at 4.01% APY 3 Month Guarantee

2008-06-19T15:01:00.000-07:00

Everbank is offering their classic 3 month promo rate. Right now the rate is 4.01% APY guaranteed for the first 3 months of the account. Then, it drops down to 3.06% APY, which isn't bad.

Some express skepticism at the rate but I think it actually works for several reasons. First, you can open an account at another bank but there's no guarantee they won't drop rates the next week. Everbank is guaranteeing you 3 months of high interest.

Second, you can look at this as a high yield three month CD. Right now, the top 3 Month CD rate according to BestCashCow is 3.35% APY. So you'd be much better off putting the money in Everbank for 3 months, where the rate is guaranteed and the money is liquid.

Indymac Raises Rates on CD and Money Markets

2007-08-13T12:51:00.000-07:00

I just read on BestCashCow that Indymac has raised its rates on Certificates of Deposit and Money Market Accounts. They are now offering a very competitive rate of 5.55% on 1 year and 5 month CDs. Considering that it's very likely that the Fed will drop rates shortly, I think the 1 year CD may be a better deal, but that's just my opinion. You need to make a minimum deposit of $5,000 to get this rate.

Their money market rate rose to 5.75% which is just 25 basis points from the market leader FNBO and 26 basis points from Everbank's promotional rate (a basis point is equivalent to 1 percentage point).

Highest Rate

2007-08-11T20:12:00.000-07:00

The highest rate on a savings account at the moment according to the BestCashCow rate table is Everbank with 6.01% (nevermind that Everbank's account is actually more of a checking than a savings account). The next highest is FNBO at 6%. This is an interesting one because Everbank's rate is a promo one that only lasts 3 months. FNBO's says it's rate isn't a promo and that is applies to all balances held in your account from 5/1-9/28 2007. So what happens after that? New money will not get the rate but how long will deposits during the qualifying timeperiod get it? In the disclaimer, it says:

"Rates may change after the account is opened, but we will not change rates until September 28, 2007 on deposits that are accepted before the rates are changed."

So basically, FNBO can change the rate at any time after 9/28.

So, for now, I guess I agree with BestCashCow. Everbank has the highest rate and at least you know how long you will get it for, even if it's labeled a promo.

Electric Orange

2007-08-11T19:39:00.000-07:00

BankMan on BestCashCow posted a good article on the ING electric orange account. Unlike ING's Orange Savings Account, this one has check writing and a debit card, making it a true checking account. Users can withdraw their money through the 32,000 location Allpoint ATM network. I know it's technically not a savings account, but heh.

Bankdeals also has a series of interesting posts on FNBO and some of the mistakes the First National Bank of Omaha is making with their online start-up. Let's see if they can get their act together. I'm also curious to see what rate they're going to drop to once the 6% promo ends in September.

More later.