Bank of America is offering a Special Rate Savings Account that pays 1.5% APY, guaranteed until April 1, 2009. The money is totally liquid and can be withdrawn at any time via the branch, ATM, check, or online. You can also add money to the savings account up until the April 1 deadline.

According to the BestCashCow rate tables, this is moderately competitive compared to the other top savings rates. Still, the guaranteed rate makes this attractive and the 1.5% APR looks pretty good when compared to the best 3-month cd rates and 6-month cd rates. In essence, you are getting a liquid CD that pays near the top of the short-term CD rate ranges.

The "special rate" is available online only for new or existing Bank of America checking account customers who open a new Special Rate Money Market Savings account with a minimum of $10,000. Special 1.50% rate applies only to balances between $10,000 and $250,000 from November 7, 2009 to April 1, 2010. The APY for balances under $10,000 is 0.90% as of 11/06/09. The APY for amounts $250,000 and over is 1.15% as of 11/06/09.

After April 1, the Special Rate Money Market Savings account automatically converts to a Growth Money Market Savings. As of today, November 17, the Growth Money Market Savings Account was offering a .95% APY on balances over $25,000. A bonus APY of 1.20% APY applies if a credit is received into the Growth Money Market each month via one of these three ways:

• An automatic transfer of $250 or more from your Bank of America checking account
• An automatic transfer of the monthly interest payment from your Bank of America CD
• A direct deposit of $250 or more.

The account has a tiered rate system so there are lower minimum balances but the APY is also lower. 1.2% isn't bad but it's starting to get low for a BestCashCow covered account. I think once the Special Rate expires savers should compare all of their options.

The account can only be opened online.

NewDominion Bank out of Charlotte, NC is offering a competitive 1.5% APY savings account rate. We've reviewed NewDominion before because of competitive rates they offered on CDs.

The 1.5% APY savings rate is right in the sweet spot of high yield savings account rates. The chart below shows that 1.5% APY is the most popular rate amongst the banks on the BestCashCow savings rate tables over the past week. That means there is a good choice in banks clustered around that rate.

Features of the NewDominion savings account include:

• $1,500 minimum opening balance
• $1,000 ongoing balance to avoid a $10 monthly fee
• Three free withdrawals per month; $5 each thereafter
• Interest compounded daily, paid monthly
• Electronic quarterly statement

Sallie Mae Bank today raised their savings account rate from 1.25% APY to 1.40% APY. That represents one of the few rate increases we've seen over the past six months. The 1.40% rate makes it much more competitive on the BestCashCow rate tables and it is the second highest rate for accounts with no minimum balance.

Sallie Mae Bank entered the online savings space relatively recently. Key savings account features include:

• No minimum balance
• No monthly fees
• Daily compounding interest
• Linkage with Upromise that provides a 10% match on Upromise earnings.

The application supports joint accounts and is fully electronic. Once the application is approved you'll receive a welcome letter via email with login information. Deposits are done via ACH with an account you choose to link. The linkage process if verified by two small trial deposits that are made to the external linked account. This is standard online banking procedure and the more automated way to link and transfer funds.

Sallie Mae Bank has three out of five stars from Bauer Financial for its safety and soundness. The bank is FDIC insured and according to the FDIC has $7.9 billion in deposits as of Dec 31, 2009. The bank is part of student loan lender Sallie Mae.