Earn higher interest at online banks

Online savings accounts are the best option right now for liquidity and rates: FDIC insured, no minimum balance, no monthly fees, no early withdrawal penalty, interest compounded daily, and they pay higher interest rates than money market mutual funds and many other options. Transfer money electronically to a linked account (traditional savings or checking account); limited # of withdrawals/month (often 6). Rates are variable and, at this point, declining but still better than other liquid options.

Some good options and recent interest rates:

• Ally Bank http://www.ally.com/ (1.09% 11/22/10)
• Sallie Mae Bank (http://www.salliemae.com) (Nov. 16, 2010: 1.3%)
• Discover Bank (http://www.discoverbank.com/): 1.25%
• Other online banks to consider: http://HSBCdirect.com, http://Ingdirect.com, http://www.emigrantdirect.com

Don't forget that all these links should automatically convert to an "https" URL with the little padlock symbol in the lower right corner to ensure the sight is secure.