APY interest rate on my ING Direct savings account:

June 2010: 1.1%
Feb 2011: 1.0%
Oct 2011: 0.90%
Dec 2011: 0.85%

Any online savings account recommendations? This is for my emergency fund so I'd prefer a basic savings account over a CD.

I wouldn't go through the hassle of changing banks just for the sake of a 0.15% drop in interest rates over 1 year. Just accept the fact that we're currently in a period of historically low interest rates, for an unprecedented length of time, and don't lose any sleep over it. It's not like anybody else is making big returns and you're getting left behind.

It's your emergency fund. Its job is to simply be there when you need it, not to earn interest. I'd leave it where it is.

What kombat said. Also, I think pretty much every option is going to be the same right now, and CD rates are comparably bad. It'll stay this way until the gub'mint decides to crank up the interest rate again.

For now, well, they're keeping it low because YOU'RE NOT BUYING ENOUGH STUFF!!!!!!

~EEE~

P.S. Tongue planted firmly in cheek, this is neither advice nor a political post. I simply have had too much coffee this morning.

+1. You should not even care what your emergency fund earns. That's not it's job!

I'm currently making 2.51% APY on my checking account. My savings account wasn't making squat... so I closed it down and moved all my $$$ into checking. What I do is a little creative logging. Whenever I want to move money from my checking to my eFund I just move it on paper. It's still in the account and pulling down the 2.51% interest, but when I look at my checking roster it's not listed.

Thanks for the posts. Over the next 6 months I'll be moving, finishing grad school and job hunting, but I'm committed to leaving the E-fund alone and living off my short-term savings, odd jobs and a little graduation $$ headed my way.

Where are you getting this rate?!