Best Savings Accounts for 2011

Forget savings accounts – these rates don’t hold a candle to the rates you can get at rewards checking accounts. I’m getting almost 3% at an online bank just for using my debit card and getting direct deposit.

Now, with the upcoming reduction in fees, that might change, but for the time being, you can get far higher rates for your first $10-25K in savings with rewards checking.

I’ve had my savings at ING for nearly 10 years. When I opened the account, the rate was over 6% – oh, the good ole days. The thought of moving is not appealing (I didn’t realize they’d been bought out, which really bums me out). Like @strongside, I’ll keep it there until something changes.

But, like @Ryan, I keep a hefty sum in my credit union checking account because it earns me nearly 4% for balances up to $20,000. When they started that, I moved funds back to it from my ING account in order to take advantage of the much higher return.

I think the key is just being aware of your options and what’s available to you. For me, moving to a new bank for a .1 or .2 % increase just isn’t worth the time or hassle. I’ll need a better reason.

My husband and I currently have the bulk of our savings with WTDirect and think they’re great. However, WTDirect was recently bought by M&T Bank which has very low interest rates according to its website. We’re considering switching to EverBank primarily because they’re a smaller bank and they’re also based in my hometown of Jacksonville, Florida.

I recently moved my liquid savings from the big-name bank where I have my checking (because I move a lot, and need something that’s everywhere) back to a credit union in my home town. The rate is higher but still abysmally low (about .4%).

To answer the question at the end of your post, the factors that weigh into my decision are the interest rate, my personal beliefs, and the convenience of the account. Having my money at a credit union fits in better with my beliefs, and though it’s out of state for me, I can access the money pretty easily. I could get a better rate at an online bank but it would be less convenient, and 0.8% more in interest is only like $80 per year per $10k… not all that significant. Having my savings at the same bank as my checking is most convenient which is why I did it that way for so long, but the rates are bad and I don’t particularly want to support them anyway.

I’ve been using flagstar for a few years now (don’t see them on your list) – at 1.1%. They’ve been good to me, so I’m going to be sticking with them for a while…

I’ve tried using the rewards accounts, but I can’t get myself to use the debit card 12 times in a month. it’s too stressful.

I use ING for just a tiny little fun money account as they hold your transfers forever and their interest rate is not the best. I use SmartyPig for savings as their interest rate is good, and I’ve just switched over to PerkStreet for cash rewards debit card purchases (2% for the first 90 days for a new account, then 1% after that). Do remember, your 1.00% on a savings account is ANNUAL, the cash rewards on the debit card is monthly as you use it, so on my first $400 put on the debit card I’ve earned $5 on the $250 spend (2%), so if I figure the interest on what I’ve actually transferred to the card, I’ve actually earned over 1% ($5.00/$400) (read 12% a year) for the month as opposed to the (more or less).001% (read 1% a year) I would have gotten from a savings account for the month. I’ll take the money from SmartyPig when I need to spend it, and transfer it PerkStreet and get paid for using my money. Who needs credit cards?

I’m having several problems with my savings situation.

First of all, I LOVE ING Direct. I cried when they got bought by Capital One, as my husband and I have both had terrible experiences with them and I absolutely cannot trust them. I have not decided what to do. I think I will leave my savings for now (not sure about checking) and watch like a hawk for the slightest change in service. If they just take over ownership and keep their slimy paws off, it might be ok. (Like Disney buying Marvel, but with even worse potential consequences.)

Second, I did a little research myself on some of these other banks. I don’t have the patience of JD, but I looked around a bit. Every one has terrible reviews. Ally, which looks good from the outside, has pages of people complaining that their money got held hostage in some banking limbo when they tried to make a payment or a transfer or something. Who wants to sign up for that? All the banks I looked at had the same problem.

Except one: American Express, a company I could actually bring myself to trust. The problem? I can’t get their personal savings site to load on my computer. No idea why. Do you have to have an Amex card to get an Amex savings account? It might be worth it…

Does anyone know if the ING Retirement portion was bought out by Capital One? I have ING Orange Savings account but I have a 401K set up with ING as well.

Also, why the hate for Capital One? What happened for most of you to dislike them?

I don’t agree Capital one is a bad choice. I have account with them for over 2 years. In saving as well as interest checking. When ING was paying 0.9% Capital One pays 1.1%.

I had a problem with bank of america account, as it got accidentally frozen, while lookign for alternate chekcing accounts, I found interest bearing checking account from capital one bank. And, I glad that I started looking, for alternative.

The whole journey is documented in my blog, which might be helpful for other readers.
http://onecentatatime.com/have-a-second-checking-account/

I also use two different rewards checking account to store my savings. First Bank & Trust in SD and NARFE credit union in VA. They started out at 3.5 – 4% interest, but over time have dropped to 2- 2.5%. Need to have one direct deposit, electronic statement and 10-12 debits per month per account.

I don’t know how the interest rate is going to affected by new legislation effective July that will limit the amount of debit card fees the banks can charge merchants. This money making on the debit fees is how the banks can offer higher interest rates to their depositers.

The website below shows some of these types of accounts available. Some may only be for people that live in that state, others will allow out-of-state residents to apply.

http://www.depositaccounts.com/checking/reward-checking-accounts.html

I have been with Ally all these years and have 10 sub accounts (essentially separate accounts under same login that you can nick name). We are saving for our first home downpayment so have some good cash parked in savings. For the first $25k, we use a rewards checking that pays 3.5%. You can find rewards checking that accepts online sign ups via (1) Kasasa (2) http://www.depositaccounts.com/checking/reward-checking-accounts.html (3) https://www.checkingfinder.com/ I like depositaccounts the best, but the other ones sometimes have a few accounts that don’t show up on deposit accounts, so it is good to check all three. Won’t take more than a couple of minutes. But with these accounts you do have to make 10 debit card transactions. For me anything less than $4 I put that in this card. Works out well. Some people pay a bill in $1 increment. For me, just the regular purchases works out well.

I agree, when I heard about ING being bought the first thought it lead to was “NO WAY,” followed by my wife saying “Um… NO. We will close that account.” We were totally in agreement within like 3 nanoseconds, without even discussing it. That is when you KNOW that a company has really ticked some people off! CapOne has no insurance of ever winning most of these people (like us) back, either. Wow.
Jerry

I have two accounts plus a credit card with Capital One. I’ve never had a problem with them. Had a late payment last month, and they removed the fee when I called (I’d never had a late pmt before) and said “Oops.” I also have a CD with Ally, which I like, and had $ in Everbank until they raised the minimum. Everbank also delayed so long in setting up my account that the interest rate went down before they could get everything settled so I just said forget it. Also have a rewards checking at a C.U. that we keep at the maximum amount to get the best interest rate. I love Smarty Pig generally. However, what I don’t love about them is that I can’t put any of the accounts into our trust rather than my individual name. I don’t understand why, but they wouldn’t do it when I set up the accounts. Maybe they’ve changed that now. Anyone know?

Costco has a favorable savings account rate, as well as other interesting financial products for members. Their savings is 1.15% with a $60/$20 bonus for Executive/Gold members on a $5K deposit & quarterly bonus interest on $10K+ balances. I’m considering switching from ING myself!