Global financial crisis had an adverse effect on the terms and conditions that highest interest savings account provided to the savers. Fed made a decision to move to expansionary monetary policy and reduce interest rates. Fed believes that in such a way they can stimulate economy and facilitate faster recovery from the consequences of the crisis. This for ordinary Americans means that they should expect decrease in interest rates in their savings instruments, such decrease in annual percentage interest (APY) for highest interest savings account that is considered to be one of the most important benefits this savings instrument offers.
In fact this is what happened lately. Online banks responded adequately to interest rate cuts and reduced annual percentage interest for their highest interest savings account that were highly popular in pre-crisis period. For example, ING Direct had to cut annual percentage interest on its Orange Savings Account to 1.65%. Below we describe several popular highest interest savings account that are available on the market:
- ING Direct that provides Electric Orange Account recently offers annual percentage interest from 0.25% to 1.55%;
- HSBC Direct that provides HSBC’s Online Savings Account decreased rate to 1.55%;
- WT Direct that provides WTDirect Savings Account that now offers 1.76% annual percentage interest. Although this rate is high than other online banks offer, WT Direct sets certain conditions for this rate: for first 60 days you will be getting 1.76%, but if after 60 days on your savings account you have balance less than $10,000, your rate will decrease to 0.5%;
Highest interest savings Account- EverBank providing EverBank Interest Money Market Account now offers 3.01% APY for three months and 2.15% afterwards. Initial amount to open this account is $1,500;
- Dollar Savings Direct through its Dollar Savings Account now offers 2% APY with minimum balance to open the account $1,000;
- Ally Bank through Ally Bank Savings Account offers 1.95% APY with no initial balance required;
- Bank of Internet providing Bank of Internet Highest interest savings Account has 2.06% APY that is higher than many other online banks offer. No fees or minimum balance requirements apply;
- E*Trade offering E*Trade Bank Complete Savings Account provides 0.95% APY. Rates were lowered as a response to Fed interest rate cut;
- FNBO Direct with FNBO Direct Online Savings Account offers 1.9% APY;
These are the rates for the most common highest interest savings account. You can find other instruments for making savings such as certificates of deposit and money market mutual funds (check out the article on money market mutual funds).