Where should you keep your emergency fund?
You should always look for a high interest savings account to keep your savings. Now, the highest interest banks out there with no restrictions are AmEx with 1.3% interest rate and SFGI Direct with 1.4% interest rate. This is a great way to earn at least some money on your funds. Also, since the banks are online, it will take you time to draw on the balance and will, hopefully, prevent you from spending the money you should be saving.
AMEX Bank
SFGI Direct
Some savings accounts that have restrictions such as the requirement to use the debit card at least 10 times per month and have a direct deposit into the account pay as much as 4.5% interest rate.
To check for current highest rates, go to:
Deposit Accounts
High interest accounts with requirements
My Bank Tracker
No fine print savings accounts
There are plenty of high interest savings accounts around if you look for them. I'm not sure about 4.5% - that might be a little steep, but surely there are good ones that creep up to the T-Bill rate. Ally bank has some good ones; as does ING.
ReplyDeleteSince this post, the rates on those two banks have decreased (1.15% and 1.21% respectively). I've been using the following for a couple of years now and have been very pleased with their rates as well as their features.
ReplyDeleteSmartypig.com (1.35%)
I like SmartyPig too. It's also easy to use unlike the current bank I'm using - Evantage Bank. However, since this is the bank for my emergency fund, I don't need to log in or use it. Therefore, I like their current rate of 1.75% with no qualification requirements.
ReplyDelete@Crystal - There are 4.5% interest rates for accounts where you are willing to follow some requirements that are mentioned in the post. If you doubt it, please follow through the link. The rate is still 4.5% for the top account as of today.
ReplyDelete