Currently rates are at historic lows and vary from 0.2 percent to 2 percent depending on the financial institution and account balance. If you have a significant amount of money to invest initially, consider looking at a high yield savings account. These accounts pay a higher rate of interest since the investment is higher.
If you are willing to invest with an on-line bank, they traditionally offer higher rates since they have lower overhead. If you are comfortable managing your funds on-line, this is a great option.
There are on-line sites that assist consumers in finding the best savings account rates. Bankrate.com and money-rates.com allow users to do an on-line search for the best rates based on their amount of deposit.
In addition to banks, some investment companies, such as Fidelity and Schwab, also offer an account that operates like a savings account. Most require a minimum balance. It is important to note that investment companies are subject to Securities and Exchange (SEC) rules rather than banking laws.