Your money should be working for you, ALWAYS. We expect you to earn interest when you save (and cash back on your credit card when you spend). Obviously, the goal is to make the most money—without doing anything except saving said money in the right kind of account.
When shopping around for a high-yield account, you'll want to consider:
- How many checking accounts you're allowed to link to your high-yield savings.
- The number of free transfers from savings to checking you're allowed per month.
- The minimum account balance required.
- The variability of the APY (i.e., does the bank have a history of offering consistently high rates?).
- That you should only put your money with a bank that's fully FDIC-insured!
Below, our 4 favorite high-yield savings accounts. Note that the accounts with higher APYs (annual percentage yield) also usually have higher minimum deposits. Our handy chart bares it all:
|American Express Bank||1.50%||$0||Who knew the credit card company offered savings accounts? This has the highest APY of all the ones we found.|
|Ally Bank||1.44%||$0||No minimum balance and no monthly fees are two perks, plus six free transactions per statement cycle.|
|ING Direct||1.20%||$1||The grandfather of online high-yield savings charges no fees, which makes it super easy to automatically transfer money in from your normal checking account.|
|HSBC Advance||1.20%||$1||You can connect this savings account to as many checking accounts as you want, no matter what bank they're at.|
One caveat: These numbers were correct as of February 11th, but rates are in constant flux, so check with Bankrate.com for the most up-to-date information.
If you're interested in a longer-term relationship with your money, check out our previous Daily to help you find out the scoop on CDs (certificates of deposit).