A year ago, when the economy was all roses and executives didn't have to fear public backlash for taking a jaunt in the corporate jet, the interest rates paid for online savings accounts couldn't stop going up. The competition to recruit new customers was so fierce that banks engaged in pricing wars with new promotions rolling out weekly, often paying higher rates than the CD's at my local bank.
Sadly the bubble has burst and online interest rates have come tumbling down. There are still plenty of deals to be had,, though, to make your money work for you. Here are some of the top online high yield savings accounts and up-to-date rates courtesy of the High Yield Savings account comparison from Get Rich Slowly.
These rates are up to date as of January 15th.
E*Trade - 3.01% APY
FNBO - 2.80% APY
HSBC Direct - 2.60% APY
ING Direct - 2.50% APY
Get Rich Slowly continually updates the rates for these and many more online banking accounts.
If your rate, like mine, has dropped significantly since the middle of 2008, keep reading for more information on what you need to know before you find a new place to stash your cash.