The Best Interest Rates on Savings Accounts Available in March 2009.

We are officially into the third month of 2009 and thus far this year interest rates on savings accounts have reached near record lows. The Federal Reserve has a target interest rate of borrowing of “zero” on many types of loans. Since interest rates on savings accounts typically tend to track pretty evenly with the Federal Reserve’s target interest rates, the amount that savers can get on their money right on are pretty bleak.

The depressed interest rates on savings make it more important than ever to have a savings account at a bank that offers you an interest rate that’s competitive with other banks and provides FDIC or NCUA insurance on your money in the event that the bank goes bankrupt. The FDIC recently issued a list of over 150 banks that are in trouble financially, so it’s absolutely critical that your money is in an FDIC or NCUA insured account.

Online savings accounts have traditionally offered much better interest rates than traditional “megabanks” such as Wells Fargo, Wachhovia, Citibank, and Bank of America. This continues to hold true in the currently depressed state of the economy.

Here is a list of banks that offer online savings accounts or money market accounts at or above 2.6% in today’s market:

• Ever Bank – 3.57% APY ($1500 Minimum Balance)
• Broadway Federal Bank – 3.56% ($1000 Minimum Balance)
• SmartyPig – 3.25%
• ShoreBank – 3.15%
• CNB Bank Direct – 3.00%
• Provident Direct – 2.82%
• GMAC Bank – 2.75%
• OneUnited – 2.75%
• FlagStar – 2.65% (MMA)
• Savings Square – 2.60%

With ING Direct currently sitting at 1.85% and FNBO Direct sitting at2.4%, some of these interest rates look very attractive. Just remember that whatever bank has the highest interest rates right now might just be hoping to attract new customers and then fall back to be in line with the rest of the pack a few months down the line. It’s usually better to find a bank that has consistently high interest rates rather than whichever is offering the best interest rate at any given point.

If you’re at a bank that’s offering less than 2.25% right now, you should seriously consider opening an online savings account offering you a better interest rate. You won’t get a ton more money in interest, but don’t settle for a fraction of a percentage of interest on your savings when you can at least stay in pace with inflation by getting a higher-interest rate savings account.