Emergency Fund... where to get a good interest rate on a savings account?

[HankWilliams]

Hi, Sorry if this has been discussed 1000 times...

Our emergency fund is sitting in a simple checking account. We would like to get a higher interest rate in some kind of savings account.
I checked out Bankrate, etc, but curious what the wise folks here do. Thanks so much.

[secondcor521]

Either online high-yield savings accounts, 2-3 year CDs, or money markets seem to be the popular choices that I've seen lately.

Personally I use Alliant Credit Union and get a bit over 2% now.  There are higher paying options out there but I'm too lazy to switch for the extra ~0.5%, especially since I keep my liquid savings at an average of a few months of expenses.

[szmaine]

I also use a credit union. Often there will be a limit on the amount that gets the best rate and there remainder gets a lower rate. In my case, 3% on the first 10k and .8% up to 15k. And I need to have direct deposit, log in once a month and post 12 debits per month or it all reverts to the lower rate.

Currently I am considering a cd ladder with on online bank for the  above 10k portion.

[cowpuncher10]

Ally savings accounts are currently at 2.2%. So glad we left bank of america.

[Falke401]

Citizens Access is around 2.3% right now. 

[FireAnt]

Citizens Access is around 2.3% right now.

2.35% -- We just put ours in Citizen's Access in October or November - already making a good chunk of money for it to sit there. It was 2.25 and then we got a New Years surprise increase. My DH and I are still disappointed in ourselves for not doing this WAY sooner.

[Arbitrage]

A good online savings account is a reasonable, easy solution.  Another option is Vanguard Money Market funds.  Not FDIC insured, but nevertheless minimal risk.  $3000 minimum for Prime Money Market, but current compound yield is 2.50%.  The yield has been consistently higher than all online savings accounts (not counting the specialized rewards checking-style accounts that come with lots of conditions and restrictions) for at least a year.

[HamsterStache]

There are better rates if you look, but since we already use Capital One for brick and mortar checking, we use Capital One 360 Money Market for our e-fund. Currently at 2% for balances over $25k. Plenty of other good options too though as you've seen here and on bankrate.

[seattlecyclone]

Series I savings bonds are currently yielding 2.83%. They do have a couple of tax advantages (the ability to defer taxation on the interest until you sell, and the ability to avoid this tax entirely if you sell in a year where you pay for college expenses), but one big drawback for emergency fund purposes: you can't get your money back at all for a full year. You may find it worthwhile to gradually transition your emergency fund into these over a couple of years.