The highest savings accounts rates! All insured FDIC

*Based on the date of research

NEW ACCOUNT

1. CIT BANK 5.05%, minimum deposit $5k

2. ufb Direct 5.06%, minimum deposit $0

3. TIAA Bank 4.75%, minimum deposit $0

4. Capitol One 4.3%, minimum deposit $0

5. Discover 4.3% , minimum deposit $0

6. American Express National National Bank 4.15%, minimum deposit $1

7. BARCLAYS 4.35%, minimum deposit $0

8. LAYS 4.35%, minimum deposit $0

9. QUONTIC 5%, minimum deposit, $100

Also these Savings accounts have an High Yield of 5% or higher: Milli, Newtek Bank, Evergreen Bank, TotalDirectBank, CFG Bank, FNBO Direct, Vio Bank, Popular Direct, Western State Bank, UFB Direct, CIT Bank, BankPurely, iGObanking, TAB Bank, Salem Five Direct.

HOW DOES IT WORK: 3 ways it may work

Compound Interest is calculated based on the principal and earns interests from previous periods.

Simple interest is only calculated based on principal.

Banks savings interests are Annual Percentage Rates, that includes compounds

First determine how much you can afford to save bi-weekly, monthly, etc. This money should be deducted before any other actions are taken so that you don't miss it. Interest earning accounts are low risk accounts that can be used for savings without the hassle of loss. There are several types of accounts such as Savings, CD's, Money Market funds, Treasury Bills, and Bonds. However, you must do the necessary research to determine how you maximize your savings.

1. Savings Accounts such as online banking and credit unions. Make sure they are insured by FDIC. Also check for service fees and account minimum requirements.

2. High Yield Savings Accounts. Right now online banking is winning for personal as well as business accounts (See our post on best Savings Accounts with High Yield Account Rates). Some of these FDIC protected institutions has higher rates but may require a larger initial deposit. If you already have accounts with them such as credit cards or checking accounts that an added bonus.

3. CD's Certificated of Deposit. These are savings enetities that require you to keep the money there for a certain of time and may cause penalty if you withdraw before its maturity time. They are usually annualy, bi-annually, five years etc.

4. Money Market Mutual Fund. Interests rates are not guaranteed in that it depends on the performance in that time. However, it is low-risks and much like others that can only provide short-term interests rates.

There are others that we will discuss in the future but for those of you that are just starting out or looking to allow your money to make some money in a low-risk setting, these are it.