Find The Best Savings Account Interest Rates

Sometimes, finding the best savings account interest rates can be a difficult task. Many banks offer better rates, but with that are certain terms that make those higher rates a little less attractive. Or, you just don't have the initial startup deposit to get things rolling.

Below, we will list a few of the very best savings accounts that will give you a better return on your dollar than most others.

But first, what's the big deal with having a higher interest rate?  You can't really make any decent money off savings can you?

If you're looking to get more bang for your buck, you may want to consider a higher interest savings account. With that will come a better return on investment, but make sure you read the fine print! There are many banks and financial institutions that offer high yield savings accounts, but be aware of the terms!

There are actually a few things to consider when you are shopping around for the best savings account interest rates.

The first one is obviously the interest rate itself. While it's not impossible to get an interest rate near or above 2% on a savings account, it's not very common. Additionally, there may be an initial deposit amount that you will have to have in order to get that higher rate. Somewhere in the ballpark of $50,000 and/or more is usually what you should expect to have. The higher rates are nice, but there are often other factors that you need to qualify before you can get there.

What Is APY?
Another aspect to realize is the Annual Percentage Yield (APY). While this is different than the Annual Percentage Rate (APR), they are pretty closely related. The APY is calculated over the period of 365 days, or one year assuming that the money has remained in that investment for the duration.

What an Annual Percentage Yield also takes into account, which an APR doesn't, is the effect of compounding interest. So in layman's terms, the APY will generally be higher than the APR because it factors in compounded interest. There are a few different formulas that figure out APY. They can be found here, but dont' get too confused! As with any investment rate, the higher the better, which translates to more bang for your buck!

Stick With The Big Dogs
Also, researching these savings banks is the key. If you have never heard of a specific bank, but they are offering an attractive rate, it may be too good to be true. Many of these "start up" banks will not last for many years. It's much better to trust your money with an institution that has a proven track record.

The best savings account interest rates shouldn't be your only determining factor in selecting one that is right for you. However, it is important to get a high rate. Let's take a look at higher yield savings accounts that are available.

Below is a list of some of the best savings account interest rates, and also ones that have good terms of service. These banks are all reputable and offer many unique ways to save. All of the following are available to people with little to no initial deposit amount:

*These rates are subject to change without notice

• American Express
  Savings Account with a 1.29% Interest Rate
  Annual Percent Yield of 1.30%
  Member of FDIC and they charge NO fees and have No minimums
• Capital One Bank
  Savings Account with a 1.34% Interest Rate
  Annual Percent Yield of 1.35%
  $1000 Minimum Balance to Earn APY
  +10% Bonus on Interest Earned!
• Ally
  Savings Account with a 1.24% Interest Rate
  Annual Percent Yield of 1.25%
  No Minimum to Earn APY
  Named Best Savings by Kiplinger's Personal Finance (2009)
• EverBank
  Money Market Account with a 1.25% Interest Rate
  Annual Percent Yield of 1.26%
  $1,500 Minimum Balance to Earn APY
  New customers get a 2.25% bonus interest rate plus a 1.51% Rate for the first year!
  

Once again, it is always good practice to do some research when looking for the best savings account interest rates.  Things are much different today than they were 10 years ago with regard to the interenet.  Anyone can open a savings account online within a few minutes.  But, it's the wise investor that reviews many factors and banks before settling on one.

Keep in mind that you will come across hundreds of lending institutions, banks and investment firms wanting you to keep your money with them.  And while competition is good, it's not necessary to explore EVERY option.  Stick with the big banks and financial institutions.  Chances are, they will be the ones with the best savings account interest rates when compared to others.  Good luck in your search!