You may not have noticed but interest rates have slowly crept up on savings accounts over the past two years. That’s good news for savings account holders. While the rates at your local bank may still be a joke; you can get a better return on your money online.

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In order to save you the trouble of searching for the best rates; we have compiled a list for you. The banks on this list are reputable banks that have been in business for at least a few years.

None of these rates are intro or teaser rates that will drop dramatically after a month or two.

All of these saving account rates are better, more competitive interest rates than anything that you will find at your commercial bank (Rates Updated: June 28th 2010).

Best Saving Account Rates

Smartypig

Smartypig is a novel concept. The bank lets you set up accounts to save for different savings goals. You can add to your own account and other Smartypig users can contribute as well. Smartypig is currently paying investors 1.75% APY. This is the highest yield of any back that I have found. It’s important to note that funds are held at BBVA Compass.

Discover Bank

Discover Bank prides itself on how its rates are so much higher than the national average. The bank is currently paying five times the national average on its accounts. Discover Bank is paying account holders 1.35% interest. This is one of the better rates around. It only takes $500 to open up a new account.

Capital One Bank

What’s in your wallet? You already know that Capital One is one of the country’s biggest credit card companies but you may not be aware that the company offers a high yield money market account. Capital One is paying account holders 1.35% APY. Why not make money off of your credit card company for a change?

Colorado Federal Savings Bank

You don’t have to be a Colorado resident to open an account at Colorado Federal Savings. The bank is paying 1.30% to The only complaint is that it takes $2,500 to get this high interest rate. That’s not too much but higher than the account opening requirements of other banks.

American Express High Yield Savings

You can earn 1.30% on a high yield savings account at American Express right now. This is better than the interest on most short term bonds and government securities. The great thing about an American Express account is that there are no account minimums. You can open a new account with just one dollar!