dcsimg
 
Advertiser Disclosure: Many of the savings offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all deposit accounts available.

America’s Best Rates 2011 Q2: Where to put your savings now

MoneyRates.com Senior Financial Analyst, CFA
July 13, 2011

See the current America's Best Rates feature

Even as the national average for savings and money market rates push towards zero, you don't have to settle. There are still banks where you can consistently get interest rates in excess of 1 percent annual percentage yield (APY).

To help you find banks that consistently offer the best savings and money market rates, MoneyRates.com tracks average rates offered by banks throughout the most recent calendar quarter and reports them as America's Best Rates. These are banks that offer high savings and money market rates day in and day out, rather than those that offer high rates as a short-lived marketing promotion.

Which banks offered America's Best Rates in the second quarter of 2011?

America's Best Rates: savings account interest rates

The following banks had the top ten savings account rates in the most recent quarter:

1.

Discover Bank

1.16%

2.

American Express

1.13%

3.

Capital One Bank

1.10%

4. (tie)

Ally Bank

1.01%

4. (tie)

Zions Bank

1.01%

6.

ING Direct

1.00%

7.

Cashmere Valley Bank

0.95%

8.

One West Bank

0.89%

9.

Mile High Banks

0.88%

10.

Allstate Bank

0.70%

Discover Bank climbed to the top spot after placing second on the savings account rate list in recent consecutive releases of America's Best Rates. Discover wasn't the only repeat bank in the top ten. In all, nine banks from the first quarter of 2011 made the list again, and seven banks are featured for the third quarterly release in a row.

What's clear is that banks featured on America's Best Rates are consistent--we're not talking about bait-and-switch rate gimmicks just to get your money in the door.

But while the banks topping America's Best Rates offer you an edge over average savings account rates, they are not immune to the macro trend of falling interest rates. The top savings account rate slipped from 1.31 percent in the fourth quarter of 2010 to 1.27 percent in the first quarter of 2011, and now to 1.16 percent in the second quarter.

To see the rates banks are offering now, check the current savings rates.

America's Best Rates: money market rates

Here are the banks with the best money market rates last quarter:

1.

Hudson City Bank

1.15%

2.

Discover Bank

1.06%

3. (tie)

Ally Bank

1.01%

3. (tie)

One West Bank

1.01%

3. (tie)

Zions Bank

1.01%

6.

AIG Bank

1.00%

7.

Mile High Banks

0.95%

8.

State Farm Bank

0.78%

9. (tie)

Capital One Bank

0.75%

9. (tie)

Think Mutual Bank

0.75%

The list of money market rates on America's Best Rates has shown even more consistency than the top savings account rates. Nine of this quarter's top ten made the list in each of the two previous quarters. Think Mutual Bank is the only new entrant to the top ten.

Furthermore, six banks pulled off the double feat of appearing in the top ten for both savings and money market rates.

While the top savings account rates have reflected the general trend towards lower interest rates, the best money market rates have held steadier. The top money market rate was 1.16 percent in the fourth quarter of 2010, which dropped to 1.10 percent in the first quarter of 2011 before rising to 1.15 percent in the second quarter.

To see what banks are offering now, check the current money market rates.

Beating the averages with America's Best Rates

The banks that made the lists of America's Best Rates offer you a chance to earn 0.70 percent APY or more on your money--at a time when the average savings account rate is just 0.25 percent and the average money market rate is barely higher at 0.29 percent.

What this latest analysis shows is that there are banks offering a significant edge over average rates, but these leaders represent a very select handful of banks. If you don't want to settle for average, it's worth your while to seek out one of the best savings accounts or money market accounts from this list.

America's Best Rates are based on the MoneyRates Index, a composite of over 100 banks, including the 50 largest in the U.S. plus a sampling of mid-sized banks.

MoneyRates Featured Savings Rates
 Account Type
 Amount

Type: Savings

Minimum to earn APY $0

0.95%APY

Rates as of 10/23/2014
FDIC Insured

Advertiser Comments

  • Member FDIC
  • ID Theft Resolution Services
  • Synchrony Bank was formerly GE Capital Retail Bank

Type: Savings

Minimum to earn APY $0

0.80%APY

Rates as of 10/23/2014
FDIC Insured

Advertiser Comments

  • Member FDIC. No minimums and no fees.

Type: Savings

Minimum to earn APY $0

0.90%APY

Rates as of 10/23/2014
FDIC Insured

Advertiser Comments

  • No minimum deposit to open.
  • No monthly maintenance fees.
  • Member FDIC.

Type: Savings

Minimum to earn APY $0

0.90%APY

Rates as of 10/23/2014
FDIC Insured

Advertiser Comments

  • No Minimum Balance
  • No Monthly Maintenance Fees
  • FDIC Insured

Type: Savings

Minimum to earn APY $25000

1.00%APY

Rates as of 10/23/2014
FDIC Insured

Advertiser Comments

  • Built on the heritage of over 100 years.
  • Member FDIC.

Type: Savings

Minimum to earn APY $0

0.95%APY

Rates as of 10/23/2014
FDIC Insured

Advertiser Comments

  • Trusted Name and FDIC-Insured. No Transaction Fees. Open Now!

Type: Savings

Minimum to earn APY $0

0.75%APY

Rates as of 10/23/2014
FDIC Insured

Advertiser Comments

  • Capital One 360: No fees. No minimums. No changing banks.

Type: Savings

Minimum to earn APY $5000

0.85%APY

Rates as of 10/23/2014
FDIC Insured

Advertiser Comments

  • Easy to open. Easy to fund. Easy to manage.
  • Free online banking and eStatements.
  • National network of free ATMs.

Rates / APY terms above are current as of the date indicated. These quotes are from banks, credit unions and thrifts, some of which have paid for a link to their website. Bank, thrift and credit union deposits are insured by the FDIC or NCUA. Contact the bank for the terms and conditions that may apply to you. Rates are subject to change without notice and may not be the same at all branches.

Your responses to ‘America’s Best Rates 2011 Q2: Where to put your savings now’

Showing 3 comments | Add your comment
Lightrider

25 September 2011 at 2:36 pm

To JRJ With Jeffrey Immelt heading GE, I wouldn't trust that company w/ my piggy bank!!

Min

1 August 2011 at 3:50 pm

Danver's bank is paying almost 3% with some stipulations. FDIC insured as well.

jrj90620

1 August 2011 at 9:56 am

Try the GE money market fund.Pays more on balances over $50K than any bank.It isn't guaranteed by govt but GE is one of the world's largest companies so you will hear about any troubles,long before you risk losing any money.

Add your comment
(required)
(will not be published, required)