1.3% Online Savings Account from American Express

American Express entered the online savings market in September 2009.  I currently use EmigrantDirect and their interest rate has fallen from around 6.125% when I first opened it in 2006 to 1.0% five today.

I haven't been very proactive about my online savings hygiene so I decided to poke around and see what was out there that could improve my current situation.  Below is a summary of what I found.  These accounts, other than when noted, have no minimum balance, no monthly fee, and minimum to open an account.

1. American Express Personal Savings - 1.3%
2. EverBank - 3 month introductory rate of 2.01%.  After that it is 1.0%, but if you're only keeping your money in there for a year, it averages out to 1.3%.  (requires $1500 minimum to open)
3. Discover 1.25% (but requires $500 minimum to open)
4. ING Orange Savings 1.1%
5. Ally 1.05%
6. EmigrantDirect 1.0% (minimum $1000 to open)

There are other accounts out there such as Capital One and Zions, but they require a minimum balance and/or minimum to open an account.  However, none of them (as of today) have a higher APY than American Express Personal Savings.  A great summary that compares account rates, minimums, fees etc. can be found on Google - compare savings accounts.

My recommendation would be to open up the American Express Personal Savings account.  It has no minimum to open an account, no monthly fees, and no minimum balance but still gives you the highest rate of return.    It is FDIC insured for all of those skeptics out there, is easy to get money in an out of, and has 24/7 customer service.

Happy Saving!