Modified on March 8th, 2015

In a rocky economy, high interest rates are the holy grail of conservative investors, especially those who dont want to to invest in bonds. But in this rocky economy, high interest hasnt really meant much: High-interest savings accounts are returning below two percent!

Get Rich Slowly readers are just like everybody else. A couple of times a week, I get e-mail from somebody looking for higher interest rates, but puzzled about where to find them. So, inspired by a recent article in Consumer Reports Money Adviser . Im going to run down the top choices for finding high interest rates.

First, I want to remind you all of one thing: Interest rates arent likely to rise until the economy improves. Capital One 360 doesnt hate you. Ally Bank isnt trying to rip you off. Were just not in a high-interest rate environment right now. The government is keeping rates low because they dont want you to save they want you to pump your money into the stock market or the general economy. Until things turn around, we wont be seeing the high interest rates that were around back in 2006.

So where can you go for high interest rates? Lets look at some options.

Note: In February, I wrote about how to get the best rates on your savings safely . That article mentioned bank accounts, but it also looked at stocks, bonds, and mutual funds. Today, Im just looking at high-interest bank accounts.

High-Interest Checking Accounts

Many small community banks and credit unions offer high-interest rewards checking accounts, which they provide in partnership with companies like BancVue. Different banks have different names for these checking accounts, but they all share similar features. These so-called rewards checking accounts offer high interest rates if you meet certain requirements.

You usually have to:

• Get your monthly statement online, not via snail mail.
• Log into your account at least once a month.
• Make a certain number of debit-card purchases each month (usually around 12 and ATM withdrawals dont count).
• Make at least one electronic transaction per month, such as an automatic payment to the electric company.

If you meet these requirements, you may still find some credit unions and community banks where you can currently earn interest rates of up to about 5% on at least a portion of the money in your account. At some banks, you can earn this high interest rate on amounts up to $10,000; at others, its $25,000. Any money above that cap earns a smaller return. And if you fail to meet the account requirements in any given month, that also triggers the lower interest rate. These rates most likely are offered only to individuals who reside in the local market area of the bank or credit union (credit unions require you to join as a member, so be sure to check if you meet the specific membership requirements of the credit union you are interested in).

How can these banks offer high interest rates on checking accounts? According to the July 2010 issue of Consumer Reports Money Adviser :

Some account requirements such as banking online and receiving electronic statements provide cost savings to the financial institutions, while frequent use of debit cards generates fees. Those savings and revenue account for the higher rates.

These accounts are localized, and youre going to have to search for the best bank in your area. Here in Portland, for example, Advantis Credit Union is offering 1.75% APY on their Fusion Checking (for balances up to $25,000) as long as you meet the monthly requirements (Rate as of March 8, 2015). But you may be able to find higher interest rates elsewhere in the U.S.

Use this list at Money Rates to find a high-interest checking account in your area.

Note: For the past two years, Kiplingers Personal Finance has named the Charles Schwab High Yield Investor Checking account its best checking account of the year. It currently offers a 0.10% variable APY, and must be tied to a brokerage account. But if a rewards checking account isnt an option for you, the Schwab account may be a good choice. (Rate as of March 8, 2015)

High-Interest Savings Accounts

If you dont want to jump through hoops, a rewards checking account may not be the best option; you may be better off with a high-interest savings account through either a traditional bank or an online bank.

As you search for a high-interest savings account, be sure to look at online banks. Why? Consider the following:

1. Though many traditional banks (like Bank of America and Wells Fargo) have a growing online presence, they generally have lower interest rates and higher fees than online-only banks like Capital One 360.

In its July 2009 issue, the Consumer Reports Money Adviser stated, Online banking, despite a rocky start, is becoming the rule rather than the exception. The newsletter cites research by Forrester Associates that predicts that 76% of American households with internet access will be banking online by next year.

Here are some online banks to consider:

• CIT Bank Savings Account offers a 0.95% APY on deposits of $100-$24,999 and 1.00% APY on any deposit of $25,000 or above. Henry Ittleson founded CIT in 1908 with a mission to provide financing for businesses. CIT has continued to grow, offering financing, lending and insurance to corporations in many different sectors. CIT Bank is an FDIC-insured institution, serving small businesses and consumers with CDs, savings accounts and custodial accounts. (Rate as of March 8, 2015)

In the comments, readers have also suggested Dollar Savings Direct (Savings Account 0.55% APY, $1000 minimum, no monthly fee. Rate as of March 8, 2015) and SmartyPig (1.00% APY in a special goal-oriented savings account with slightly different rules than most accounts. Rate as of March 8, 2015). For a more complete list, check out MoneyRates or BankRate. Here at GRS, we maintain a list of high-interest savings accounts that offer good rates and good security.

High-interest savings accounts are easy and safe. You dont have to worry about meeting any sort of minimum requirements (except perhaps a minimum balance) in order to earn the high interest rate. And many online banks (and some traditional banks, too) will let you open multiple accounts so you can save for individual goals. But high-interest savings accounts have one big drawback: They generally dont pay as much interest as a rewards checking account or a certificate of deposit.

FAQ: What about money market accounts . Money market account is just a marketing term. These accounts are basically souped-up savings accounts that sport higher interest rates and higher minimum balances. Because money market accounts have higher minimum balances, banks have more leeway to use the funds in your account. Other than that, theres not a lot of difference between them and regular savings accounts.

Certificates of Deposit

A final option for earning high interest rates is to use a certificate of deposit (also called a CD). CDs are time deposits: You give your money to a bank and promise not to touch it for a specific amount of time. Opening a CD is very much like making a loan to the bank, which can invest the money however it wants during the period you agree to. In general, the longer you let the bank keep your money, the higher the interest rate youll receive.

Unlike a savings account, once you put your money into a CD, the interest rate doesnt change. If, as I did in the CD above, you open a six-month certificate of deposit at 3.50%, and then interest rates drop to 1.00% (as they did after I opened this account), you still earn 3.50% for the entire term.

You may find the best CD rates online, but dont forget to check your local bank or credit union; my credit union often has competitive rates. You can learn more about certificates of deposit (including a few tips and tricks) in the GRS archives.

Tip: There is another option for earning high interest rates, but it carries greater risk. Consumer finance companies are subprime lenders who borrow money from folks like you and lend it out at high interest rates to people like my friend Michael, who just filed for bankruptcy. You can get a great return on your money through these places, but your deposits are not insured. Im not willing to put my money in one of these places, but you might be. My neighbor the real millionaire next door has a chunk of change at one local finance company. and its paying him 4.09%. He loves it.

Choosing a High-Interest Account

So, which of these options is right for you? Youre the only one who can make that call. As always, the key is to shop around for an account that fits your current needs.

• Choose a high-interest checking account if you use your debit card frequently and feel comfortable ditching paper statements. Once you open the account, pay attention. If you find youre not able to meet the account requirements, dont hesitate to switch to another option.

Youre probably already familiar with my own set-up. High-interest checking accounts dont work for me. I tried one for about a year, and my spending habits just didnt meet the requirements. I dont think I once qualified for the high interest rate. Since learning how to use them two years ago, I have used CDs from time-to-time. Right now, for example, I have the money for our upcoming trip to Europe tucked into a CD, where its earning a bit of interest until I need the money. But, as Ive mentioned many times, most of my savings is with Capital One 360. (Thats not to say that you should choose Capital One 360 there are plenty of other great options out there.)

As always, Im interested to hear what you folks have to say. Do you concern yourself with finding high interest rates? Do you switch banks to find better rates? What sort of system have you found to balance your need for better yields while still letting you use your money the way you want? (And has anyone had success with personal loan sites like Lending Club ?)

Checkbook register photo by lemonjenny .

GRS is committed to helping our readers save and achieve their financial goals. Savings interest rates may be low, but that is all the more reason to shop for the best rate. Find the highest savings interest rates and CD rates from Synchrony Bank. Ally Bank. GE Capital Bank. and more.