THE BLOG
07/14/2011 04:32 pm ET | Updated Sep 13, 2011

Where to Put Your Savings Now: America's Best Rates

Even as the national averages for savings and money market rates push toward zero, you don't have to settle. There are still banks where you can consistently get interest rates in excess of 1 percent annual percentage yield (APY).

To help you find banks that consistently offer the best savings and money market rates, MoneyRates.com tracks average rates offered by banks throughout the most recent calendar quarter and reports them as America's Best Rates. These are banks that offer high savings and money market rates day in and day out, rather than those that offer high rates as a short-lived marketing promotion.

Which banks offered America's best rates in the second quarter of 2011?

America's Best Rates: Savings Account Interest Rates

The following banks had the top 10 savings account rates in the most recent quarter:
















































1.

Discover Bank

1.16%

2.

American Express

1.13%

3.

Capital One Bank

1.10%

4. (tie)

Ally Bank

1.01%

4. (tie)

Zions Bank

1.01%

6.

ING Direct

1.00%

7.

Cashmere Valley Bank

0.95%

8.

One West Bank

0.89%

9.

Mile High Banks

0.88%

10.

Allstate Bank

0.70%

Discover Bank climbed to the top spot after placing second on the savings account rate list in recent consecutive releases of America's Best Rates. Discover wasn't the only repeat bank in the top 10. In all, nine banks from the first quarter of 2011 made the list again, and seven banks are featured for the third quarterly release in a row.

What's clear is that banks featured on America's Best Rates are consistent -- we're not talking about bait-and-switch rate gimmicks just to get your money in the door.

But while the banks topping America's Best Rates offer you an edge over average savings account rates, they are not immune to the macro trend of falling interest rates. The top savings account rate slipped from 1.31 percent in the fourth quarter of 2010 to 1.27 percent in the first quarter of 2011, and now to 1.16 percent in the second quarter.

America's Best Rates: Money Market Rates

Here are the banks with the best money market rates last quarter:
















































1.

Hudson City Bank

1.15%

2.

Discover Bank

1.06%

3. (tie)

Ally Bank

1.01%

3. (tie)

One West Bank

1.01%

3. (tie)

Zions Bank

1.01%

6.

AIG Bank

1.00%

7.

Mile High Banks

0.95%

8.

State Farm Bank

0.78%

9. (tie)

Capital One Bank

0.75%

9. (tie)

Think Mutual Bank

0.75%

The list of money market rates on America's Best Rates has shown even more consistency than the top savings account rates. Nine of this quarter's top 10 made the list in each of the two previous quarters. Think Mutual Bank is the only new entrant to the top 10.

Furthermore, six banks pulled off the double feat of appearing in the top 10 for both savings and money market rates.

While the top savings account rates have reflected the general trend toward lower interest rates, the best money market rates have held steadier. The top money market rate was 1.16 percent in the fourth quarter of 2010, which dropped to 1.10 percent in the first quarter of 2011 before rising to 1.15 percent in the second quarter.

Beating The Averages With America's Best Rates

The banks that made the lists of America's Best Rates offer you a chance to earn 0.70 percent APY or more on your money -- at a time when the average savings account rate is just 0.25 percent and the average money market rate is barely higher at 0.29 percent.

What this latest analysis shows is that there are banks offering a significant edge over average rates, but these leaders represent a very select handful of banks. If you don't want to settle for average, it's worth your while to seek out one of the best savings accounts or money market accounts from this list.

America's Best Rates are based on the MoneyRates Index, a composite of over 100 banks, including the 50 largest in the U.S. plus a sampling of mid-sized banks.

The original article can be found at Money-Rates.com:
"Where to put your savings now: America's Best Rates."