To find the best accounts with the best rates, you can use the online resource: BankRate.com.
Each Savings account has special rules and minimum balances, so do be careful. In general (read the fine print carefully!), these Savings accounts are FDIC insured. You normally link your Checking account (from your current Bank, for example) with the Savings account, and use the internet interface to transfer money back and forth.
While you can make unlimited deposits, these Savings Accounts have limited number of electronic transfers out of the account. Most have a limit of six electronic transfers out of the account per month.
Some of these accounts have additional features such as having an ATM attached to the account, so you can withdraw money using a normal ATM (many have unlimited withdrawals per month).
Be careful about minimum balances and fees. While most may have no minimum balance and no fees (outside of a possible ATM withdrawal fee), some may have maintainance fees if your balance falls below a certain amount.
Here are a few recommendations ranked from the best:
- HSBC Direct. Currently yielding 5.05%. FDIC insured. No monthly fees, no balance minimums. Free linked ATM card. Has a hidden feature: In some states, such as in California, you can use a Wells Fargo ATM and not get charged a fee. High reliability.
- E*Trade Complete Savings Account. Currently yielding 5.05%. FDIC insured. No minimums or account fees. High reliability. You can also open many other accounts here such as IRAs or Brokerage accounts.
- Emigrant Direct. Currently yielding 5.05%. FDIC insured. "No Fee Savings Account". They have a Mastercard 1.40% cash back offer. During maintainance periods, site can be unavailable.
- GMAC Bank. Currently yielding 5.30% APY on balances over $500. There is a maintainance fee if your balance goes under $500. Minimum open deposit is $500.
Yields can change at any time, but at this moment, there are many ways to get a great deal on a 5% or greater Savings or Money Market fund.