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Don't be afraid to use Internet banks
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Don't be afraid to use Internet banks

Online banks are a good bet for higher yields.

"They make it easy," Tumin says. "They don't have minimum balances and do have online transfer features." They're also usually covered by the FDIC, so your money is insured up to $250,000 per account.

And some juicy rates are found in unexpected places. For example, American Express offers an FDIC-insured, high-yield savings account online that paid 1.15 percent APY in mid-March. There are no fees or minimum balances. And Sallie Mae had a similar online account with a 1.1 percent APR rate.

Though much banking is done in physical branches, online banks such as Sallie Mae are just as good. SmartyPig, a free online piggy bank with a twist, is another option. It recently paid a high 1.35 percent APY rate. But you'll need to set a savings goal and deal with some restrictions. For example, partial or periodic savings account withdrawals aren't allowed. You have to withdraw the full amount.


 

 

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