I've had one of these since ~2005 or so. At its peak, I had Capital One back in that timeframe and the rate peaked at 5.25% which was significant. Since then I have switched to ING. And then switched again to Barclays. I am still with Barclays and it is good to see them still up at the top.
These are FDIC insured so it is not like a money market or stock. Pure cash. To give you an idea how competitive 1.5% on cash is, Bank of America currently offers 0.03 to 0.06% on cash savings accounts. The best they can do on a CD is 1%, and that money is locked up for the entire term, unlike a savings account. Put another way, a 1.5% online savings account is the BEST return you can get for zero risk, in my opinion.Barclays Online Savings: Top interest rate
Barclays, an online division of the global financial services company, offers U.S. customers a high-yield savings account accessible through a streamlined website. There’s no monthly fee or minimum balance requirement, and the nonsufficient-funds fee is a low $5. With a 1.50% APY, the interest rate is among the highest out there. Customer service is available by phone. Like Goldman Sachs, the bank has no checking account or ATM network, and there’s no mobile app for U.S. customers. You’ll need an outside bank account for transferring money into and out of your savings account. (For more about the bank, read our Barclays review.)
Scouring Navy Fed's website, I have the following:
- 0.25% savings
- 0.9% on a 3 month to 5 year term, rates can change
- 2.25% on a 15 month share certificate, min $50, max $50k, can add any time, but there are early withdrawal penalties
Being a credit union it is not surprising that these are better than the BoA offerings.
Anyway, 1.5% is the best you can do on cash.