Are high-yield savings accounts safe

Is a 1.25% APY High Yield Savings Account Too Good to Be True?

Yup. It is perfectly legitimate and not a money market account. While interest rates are so low across the board, this is about as high as savings accounts and is therefore called " High Yield Savings Account A number of banks offer this. Nationwide there are different offers compared to local / state offers. I would use this comparison tool at Use DepositAccounts.com to find them and the blog is very good with updates and trends. Here are some well-advertised accounts:

If you don't already have an award account, get one first. DepositAccounts.com will also redirect you to these. A reasonable rate of interest for reviewing premiums is 2.5% and more . So much better. The only ones Catches are reasonable - online bank statements, direct deposit or automatic payment. Use your debit card 10 or 12 times a month for any transaction amount (groceries, coffee, gas - simple).

The other important thing I would consider when opening an account is where you live and what checking accounts you have. If you already have an AMEX card, just use their savings account. That way you have single accounts, faster transfers, your personal information is not scattered across all the different banks, you have more control over the company as a "long time customer", etc. Simplifying the use of a bank in the state where you live it the taxes.

Two more things: I would always prefer a credit union to a bank (and many have excellent premium accounts). If you are using Mint, Yodlee, or any other financial software, make sure the potential new bank is integrated with this service.

Mehrdad

"A reasonable interest rate for checking rewards is 2.5% and more" ... these are hard to find these days :( at least with no limit on how much money they interest.