Everbank Offering $75 Cash On Top of Bonus Rate Of 2.25% APY

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Everbank is offering up to a $75 bonus for customers who open a high-yield money market and FreeNet Checking account. That's on top of their 3-month guaranteed bonus rate of 2.25% APY. As the BestCashCow savings rate tables shows, that is the top rate in the country. After 3-months, the bonus rate drops to 1.25% APY for a blended 1-year APY of 1.51%. But even the 1.51% APY is the top rate.

To get the $75 bonus, you must open both a Yield Pledge Money Market and a FreeNet Checking Account. Both offer the 2.25% APY 3-month bonus rate. If you just open the money market, you receive $50 and if you just open the FreeNet Checking, you receive $25.

You must fund the Yield Pledge with a minimum of $20,000 and the Checking with a minimum of $10,000 and maintain the respective balance through 4 statement periods. The bonus cash will be deposited into the respective account during the 5th bonus period. So presumably five months after the account was opened.

In addition, Everbank pledges to keep your account at the top 5% of competitive accounts. The rate is locked at 2.25% for  three of the five months so you're pretty much guaranteed to receive a decent return.

Everbank has 4 out of 5 stars (Excellent) from Bauer Financial for its safety and soundness.


Capital One Offers Enticing Rate on InterestPlus Online Savings Account

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Capital One offers a great interest rate on its InterestPlus account, but only if you read the fine print and follow the rules.

If you have $1,000 or more to invest in your savings account, you may want to take a look at the Capital One InterestPlus Online Savings Account. The APY is 1.35%, which is currently one of the highest rates available, and Capital One states there are no fees for this account. You also get an extra 10% quarterly bonus on your interest earned, but to qualify for the extra 10% bonus you must have at least $15,000 in your account each month or have a Capital One credit card that you use at least once a month.

If you have excellent credit are interested in taking advantage of the InterestPlus 10% bonus but don’t have $15,000 to keep in your account every month, you may want to consider getting either the Capital One No Hassle Cash Rewards Card or the Capital One Platinum Prestige card. Both cards come with a 0% introductory APR until July 2011. After the introductory APR period is over, the APY of the No Hassle Cash Rewards card increases to 14.9% and the APY of the Platinum Prestige card increases to 11.9%. Neither card has an annual fee, which is great news for customers in a time when banks are commonly increasing fees in an attempt to maximize profits.

If you’re a Costco member, you can get an even better interest rate through the Capital One InterestPlus account. Costco members can take advantage of a 1.40% interest rate, but there’s a catch. To get the higher interest rate through Costco, you must have $5,000 in your account instead of $1,000. You can still get the extra 10% quarterly bonus, but only if you keep at least $15,000 in your account each month. Through the Costco program, you can’t get the 10% bonus by just using a Capital One credit card once a month. However, you are eligible for an additional Costco member incentive: $60 if you’re an Executive Member, and $20 if you’re a Gold Star and Business member. This additional incentive will be deposited into your first Direct Banking account opened through the Costco program with at least $5,000 deposited into the account in the first 30 days after opening.

For the best information on credit cards click on the "Credit Cards" tab above, for the best information on savings account rates click the "Savings" tab above.


Fed Keep Rates at 0% Offering No Hope for Savers

Fed Keep Rates at 0% Offering No Hope for Savers

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The Federal Reserve released its FOMC Statement today and there were no surprises. The Fed reiterated its support for "exceptionally low levels of the federal funds rate for an extended period." That means savers will continue to earn almost no rate of return on savings accounts and very little on longer-term certificates of deposit. This may force many investors to think about putting cash into other investments, such as bonds.

The statement pointed out that Europe's problems along with a detoriating real estate market and high levels of unemployment will keep the economy subdued for some time to come. Those expecting a roaring V-shaped recovery are starting to realize that's not going to happen. At this point, the world economy is one more shock away from falling back into recession.

For savers this is more of the same. Savings rates and CD rates will continue to drift lower. The bright side has been the significant slide in mortgage rates since peaking in mid-April. The average 30-year mortgage rate is now 4.76%, down from 5.25 in April 2010.

Low rates will also continue to support the stock market.  Dividend stocks like Verizon (VZ), AT&T (T), and Pfizer (PFE) lead Dow stocks in terms of yield and offer those needing income one way of generating it. Verizon for instance pays 6.85% versus an average savings rate of 1.31%. But unlike FDIC bank stocks, they also offer the potential loss of principle.

The good news for savers and bond holders alike is the absence of inflation. According to the Fed statement:

"Prices of energy and other commodities have declined somewhat in recent months, and underlying inflation has trended lower. With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time."

Those spreading panic about soaring inflation in 2009 were dead wrong, at least so far. The economy needs a strong heartbeat to stir inflation and all we have now are some sporadic pulses. Despite any sign of  inflation, gold remains near a 52-week high as investors remain spooked about Europe's sovereign debt issues.