With interest rates on standard savings accounts hovering around a paltry 0.20%, it has become difficult to get any type of return on your money. But fortunately there are some pretty good alternatives to your standard savings account. Here are four of the best currently available:
Barclays Online Bank
Barclays Bank is now offering online savings accounts to U.S. residents with an APY of 1.00%. While this rate is not great, it’s among the highest rates we’ve seen in years. It sure beats the 0.20% that most brick and mortar banks are currently offering. No hidden fees, no minimum balances required and 6 free withdrawals per month. FDIC insured up $250,000.
Ally Bank
Ally Bank online savings account currently pays 0.84% APY, has no maintenance fees, no minimums, and no need to change banks. Also FDIC insured up $250,000. You can sign into your account 24/7 and interest on your savings account is accrued daily, and compounded monthly.
No-Risk CD
By opening a no risk CD (also called a no penalty CD) you can access your cash at any point with no early withdrawal penalty. Rates are a little lower than your standard 12-month CD, but you have much more flexibility with the no-risk variety. Currently, the best risk free CD is at Ally Bank with a rate of 0.94%.
Short Term Bond Fund
If you can handle a little more risk, consider looking into a short term bond fund which have an average 1-year return of 3.37%. They are not government insured and typically have a small maintenance fee and possibly a small commission owed. But the rate of return far outweigh the costs and is a viable option for short term investors.
Bottom line: Online banks can offer higher rates because they have much lower overhead and are able to pass the savings along to you.
In keeping with tradition, here is a sampling of some of the better online coupons currently on Rather-Be-Shopping.com:
Home Depot.com
Save $20 Off your $299+ order
Coupon Code: THDMAY
Expiration: 5/26/12
See all: Home Depot Coupons
Lands’ End.com
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Expiration: 5/24/12
See all: Lands’ End Coupons
Nike Store
Save 20% Off all Clearance Items
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Expiration: 5/30/12
See all: Nike Coupons
Snapfish.com
Free Shipping on your $30+ purchase
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Expiration: 5/31/12
See all: Snapfish Coupons
Shoes.com.com
20% Off your order + Free Shipping
Coupon Code: SECRET20
Expiration: 5/25/12
See all:Shoes.com Coupons
About the Author: Kyle James owns and manages a website called Rather-Be-Shopping.com which lists and organizes online coupons for over 800 stores.
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Brilliant alternative tips to say the least. I myself have applied for a short term bond fund by last week. At the same time I have always been a follower of no-risk CD and have 3 fixed accounts upon it.