Last Updated Oct 4, 2011 11:04 AM EDT
By the way, I don't just write about these things. I put roughly 80 percent of my fixed income money where my mouth is in CDs and bank money markets, with the remainder mostly in low cost bond index funds. Here's how I go about the analysis and where you too may want to stash your cash, after carefully checking each out, of course.
Best choices for savings accounts
Though savings accounts offer liquidity, rates can change. In selecting my choices for the highest savings rates, I exclude any institutions that require things like a minimum number of debit card transactions, as that's really just cross subsidizing the profitability of one product with another. Finally, I choose institutions that I see have a history maintaining high rates since I suspect you have better things to do with your time than change accounts every month. I started my research with DepositAccounts.com.
The highest paying savings accounts from institutions with a great track record are:
- Alliant Credit Union - 1.15%
- SmartyPig - 1.10%
- Salie Mae Bank - 1.00%
- American Express Bank - 1.00%
- Discover Bank - 1.00%
- ING - 1.00% (1.10% for $50K and 1.15% over $100k)
- Ally Bank - 0.99%
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