Top savings accounts paying 2.30%

Money sticking out of bank book

Tennessee Commerce Bank in Franklin, Tenn. is back on top of our rankings of nationally available savings rates. Its 2.30% APY with a $500 minimum deposit has kept it near or in first place for several months.

It was displaced last month by Bank of Internet USA, which featured a short-lived 2.50% APY on savings and garnered a bunch of unfavorable comments regarding its user-unfriendly Website.

Other good paying accounts available nationwide include:

ShoreBank, with eight branches in the Chicago area and banking centers in Detroit and Cleveland. You earn a 2.15% APY on your savings with a minimum deposit of $1 and no monthly fees.

1st Constitution Direct, the online division of 1st Constitution Bank in Cranbury, N.J., offers a Super Savings Internet Special that earns a 2.05% APY for the first three months and a variable 1.95% APY thereafter, so you actually earn 1.98% the first year. A minimum balance of $10,000 is required.

Compare those deals with the best savings and money market account rates from hundreds of other banks in our extensive database.

Earning 2% APY or a little more isn't going to make you rich. But until the Federal Reserve starts to raise short-term interest rates, puny returns will be the norm.

The Fed's low interest rates allow bigger banks to borrow money for nothing or close to it. So where's their incentive to pay high interest rates on deposits?

Fed Chairman Ben Bernanke says interest rates will stay low for an "extended" period of time, so it could be months before rates rebound.

Meanwhile, check with local banks and credit unions. They're not getting a lot cheap money so they're willing to pay a little more for yours.

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