For comparision check on Bankrate.com. I have found better in the past but the times are shifting.

Yes, their rates are one of the best.
If you open the account as a Costco member, you get some more benefits. The details are in Costco passport booklet. On the downside, it takes a little time for your money to show up in the account if you mail them a check. Inter bank transfer is better.

not bad, but seen better

Good returns. Easy online site to use. It's even better if you have other Capital One accounts, because you can manage them all from one page.

Paypal offers a better interest rate. And actually, paypal offers the best return that I've seen around. It's also convenient, as it's very easy to take your money back out.

I think this a good rate

etrade offers a better rate in a savings account! 4.7%!

This does not sound like a deal to me. www.salemfivedirect.com pays 4.70% APY for its online free checking account. Why bother with savings account withdrawal limits if you can get just as much interest on a checking account?

#5: I would not trust PayPal with any significant amounts of my money at all. Do you realize that while PayPal provides money services very analogous to a bank, they do not declare themselves as a bank to avoid banking regulations? Straight off of their money market page: "Investments in the PayPal Money Market Fund are not insured by the FDIC."

https://www.paypal.com/us/cgi-bin/webscr?cmd=_upgrade-interest-marcom&outside=1

Lately, with subprime mortgage problems, financial companies have been writing off huge losses and some even being shutdown for insolvency. NetBank.com recently shutdown, but luckily they were FDIC insured, so people with less than $100K did not lose any of their money.

Salem Five Direct is FDIC and DIF insured. Why take the risk? Better returns can be found on the stock market if you don't mind risk.

A word on Bankrate - they favor clients with the top spots on their lists of the "best" rates. Scroll down to see rates for those that haven't paid to be on top. Sometimes they are the best.

i think etrade is good too. 4.70% right now

Just checked Paypal moneymarket fund. 4.88% But it's not FDIC insured.

I thought HSBC online banking was higher?

How come it says 4.75% APY on their site? Also you can get this http://www.capitalone.com/directbanking/rewards/index.php?linkid=WWW_1107_SAVG_09_HOME_C1_0TDBREW&itc=CAPITALONE3111SZINTMKTGD4

That's not a referal link. You can find it on their main site capitalone.com

I opened this account through costco a few weeks back, the interest rate was 5%. (and still is)

There are better rates out there. Go check with your local bank.

If investing over $1m you can get 5.17%. Anything under $1m the best non-tax-free rate is around 4.75-4.9%. Tax free rate 2.8-2.95%. All rates are after 12b-1 costs and fees.

#8, thanks for the link. I'm going to look into that bank and if they check out, I will most likely be switching over to them. You can't beat having a checking account like that.

Emmigrant Direct also has a VERY nice rate - one of the highest. My only complaint is that sometimes, money transfers can take a few days to occur (which is weird, cause its all electronic) - but as long as you plan and give yourself a few days... very easy to use system, FDIC insured, and no minimums, no fees

Bank of America offers 5.10% APY. This is an online deal...

ING Direct or ING Electric Orange is also very decent. You may want to consider Zion Bank out of Utah as they have rates above 5% introductory as well as APY.