For a limited time Leighton State Bank (based out of Leighton, Iowa) is offering customers an incredible 2.50% APY savings account on balances between $5,000 and $25,000.

Related: Compare this offer to the best CD rates available in Iowa from both community banks and credit unions.

To be eligible you’ll also have to open a checking account with the bank, however, their checking accounts come with no minimum balance requirements and no service charges.

To put this offer in perspective, the best money market accounts and online savings accounts available both online and throughout the country are paying just 1.00% APY, with the national average hovering around 0.55%.

And keep in mind, you’ll need to be able to stop by one of their 2 branches to open this savings account. They have a branch in both Leighton, Iowa as well as Pella, Iowa and are open from 9 – 4 on Monday through Friday and 8:30 – 11:30 on Saturdays. This offer is only available for a limited time.

Thanks to BankVibe.com reader Alex for tipping us off on this 100 year anniversary special from Leighton Bank (leightonbank.com)!

Here’s how it works:

Step 1

Visit a participating branch, call us toll-free at 800-593-6087 or enroll now and choose the U.S. Bank Package that works best for you.

Step 2

Enroll in S.T.A.R.T. and create your savings plan. Set up one or more of the following qualifying transfer options from your Package Checking account to your Package Money Market Savings account:

Transfer an amount you choose on a specific day of the month, OR

Transfer an amount you choose for each U.S. Bank Check Card purchase, OR

Transfer an amount you choose for each U.S. Bank Credit Card purchase.

What you get:

Enjoy rewards from US when you reach one or both S.T.A.R.T. goals:

• When your savings balance reaches $1,000, we’ll recognize your achievement with a $50 U.S. Bank Rewards Visa® Card⁴.
• Maintain a balance of $1,000 or more in your account for one year, and earn another $50 U.S. Bank Rewards Visa Card.

To help accomplish your goals, you will also receive:

• S.T.A.R.T. goal progress and transfer summary information within U.S. Bank Internet Banking
• S.T.A.R.T. details on your monthly account statement
• 24/7 assistance from our bankers

Go the the promotional offer here.

Unfortunately for most of us this deal is off the table as you must live, work or attend school in Wayne, Oakland or Macomb counties. This credit union was originally established to service the banking needs of the employees of city of Detroit but in 2009 expanded it’s membership eligibility to include most residents of the city.

Early this year we covered the best CD rates offered by credit unions and made note of the way in which these institutions are made up. We noted that, in many instances, you will be able to lock in slightly better rates with your local credit union as they are not-for-profit banking institutions that are usually wholly owned by their members, and thus, pass along any profits back to the members in the form of higher savings rates and lower loan rates.

If you’re looking to snag one of the highest savings account rates you can also skim through our favorite online savings accounts of 2011. Like credit unions, online savings accounts can also provide slightly higher rates than traditional banks as well, however, this is mainly due to the fact that they lack most of the overhead costs and expenditures associated with running a brick and mortar banking institution.

Flexibility with an online savings account is crucial. You’ll want an account with limited restrictions on withdrawals and easy wiring options to add/subtract funds. You’ll also want a low minimum balance requirement (especially if you don’t plan on stashing too much cash in the account) as well as various online management tools.

We’ve taken customer service into consideration when ranking these accounts because none of the institutions have brick and mortar branches. And even though you’ll likely never need to speak to a representative it’s still nice to know there are actually human beings behind the screen.  There should also be an easy to navigate website with secure and straight forward transfer options.

After reviewing numerous online savings accounts in 2011, we’ve compiled our favorite five based on the criteria we’ve mentioned above. We’ve also used your comments as a basis for this evaluation as well.

Top 5 Online Savings Accounts in 2011:

(Interest rates and APYs are time sensitive in nature, please refer to the date of this article for accuracy. Visit our savings account center for updated rates and information.)

1) Discover Bank High Yield Savings Accounts – Discover offers one of the top online savings accounts on the market in 2011. They have an extremely fast opening process (typically under 24 hours) and one of the best interest rates available. You’ll also encounter intuitive online management software and transfer options. The account features a low opening balance and no minimum deposit requirement.

2) Sallie Mae’s Online Savings Account – Sallie Mae, generally better known for student loans, entered the savings arena last year. Their online savings account features an easy to navigate interface along with no minimum balance requirement. Their interest rates have consistently beaten the national average but are currently lower than Discover’s APY.

3) Ally Bank’s Online Savings Account – The former GMAC re-branded them self after a tumultuous 2008. Ally was named Kiplinger Magazine’s best online savings account in 2009. Their interest rate is generally slightly lower than the top two accounts, however, it features just as flexible of terms and conditions and has 24/7 support available.

4) FNBO Direct’s Online Savings Account – Like Ally Bank, FNBO Direct was rated the best online savings account of 2008. It comes with no fees and no minimum balance requirement and is the online division of the First Bank of Omaha.

5) ING Direct’s Online Savings Account – Often featuring the lowest APY of the bunch, they probably have the most easy to use interface and ATM’s throughout the country (and abroad). They are known for a widely available and responsive customer service department and have a number of online account options available.

Have you opened an online savings account in 2011 that you feel deserves to be on this list. Tell us about it by leaving a comment!

HSBC is one of the most recognizable banking names in much of the developed world. For personal banking consumers, HSBC has a major presence in France, Hong Kong, the United Kingdom, Mexico, Brazil and the United States. They offer a full suite of personal banking products from credit cards to home loans, retirement planning and insurance. Within the savings vertical, and more specifically the US’s FDIC insured deposit market, their products are pumping out yields which make even those with vast sums of cash wonder if it’s even worth the hassle to open an account.

Within their personal savings product line they offer the following products: 1) a high yield (“high yield” being a questionable description for this product) money market account which requires a $25,000 balance and only comes with an APY of between 0.20% and 0.60% depending on your balance amount 2) an online savings account which comes with an APY of 0.90% 3) a “premium” money market account yielding between 0.10% and 0.50% depending on your balance 4) a pathetic “regular savings account” yielding 0.05% APY with a minimum deposit requirement of $100 5) and below are their current CD rates.

HSBC Bank CD Rates (2011)

(rates accurate as of March 2011. For updated rates visit HSBC.com)

- 3 month CD yielding 0.05% APY with a minimum deposit requirement of $1,000.

- 4 month CD yielding 0.05% APY with a minimum deposit requirement of $1,000.

- 6 month CD yielding 0.10% APY with a minimum deposit requirement of $1,000.

- 7 month CD yielding 0.10% APY with a minimum deposit requirement of $1,000.

- 8 month CD yielding 0.10% APY with a minimum deposit requirement of $1,000.

- 9 month CD yielding 0.10% APY with a minimum deposit requirement of $1,000.

- 12 month CD yielding 0.20% APY with a minimum deposit requirement of $1,000.

- 15 month CD yielding 0.20% APY with a minimum deposit requirement of $1,000.

- 24 month CD yielding 0.35% APY with a minimum deposit requirement of $1,000.

The primary reason for many people to use Swiss banks in the past was to evade taxes. Others have been known to use it for sheltering their money from being stolen, especially during times of war. Then there are some that simply opened a Swiss bank account because it was convenient when traveling or vacationing in Europe, because they could simply withdraw money with their own Swiss credit or charge cards.

Related: Foreign currency bank CDs may advertise higher interest rates but with greater risk due to lack of FDIC insurance. Some domestic banks will allow Americans to invest in growing economies around the world through bank deposits in foreign banks.

Who are the primary customers?

There are a few types of people that come to mind, such as politicians, celebrities, dictators, socialites, industrialists, financiers, white-collar criminals, and those who just don’t trust traditional banks. Some top criminals were known to have Swiss bank accounts, like Boston crime boss James “Whitey” Bulger, but run-of-the-mill Swiss nationals and legal residents are the main account holders at Swiss banks.

You may think they are exclusive, but in reality, anyone can open an account. You don’t have to have large amounts of money to open one either. At their web site Swiss-Bank-Accounts.com, anyone can open an account with as little as 5,000 francs. Right now, that’s just over $5,000. The American dollar is weaker than the Swiss franc, which has powered through the global crisis and avoided the drastic devaluation that has hurt other currencies.

How do you set up an account?

• Like many domestic banks, you can often apply online. Or you can also apply by “correspondence”, or letter, at the bank of your choice.
• You can transfer money from your bank to the Swiss bank through wire or the Internet, or mail a check or money order.
• Paypal and Western Union can sometimes be used to fund the account, but contact the bank beforehand.
• You may also be able to use a debit card or credit card to fund the account.
• Go to a local branch of the Swiss bank, like Credit Suisse.
• Or take a trip to Switzerland and visit a bank branch.

With these mundane techniques for opening an account, you may be wondering how confidentiality could possibly be maintained for account holders, especially with the electronic and paper trails they leave behind. But clients of these banks tend to be a bit more ingenious with ways to hide their funds, like using wire transfers and doing multiple offshoring, all the while opening and closing accounts until their money has reached the Swiss bank.

Of course, it’s useful to have the help of unscrupulous brokers, bankers and accountants. They help account holders by placing accounts in the name of other offshore companies, preferably with a multi-layered global presence. These corporations can be intentionally ambiguous phantom organizations with store-fronts and web sites that miraculous disappear and reappear with different names.

The USA Today recently reported on a prime example of this kind of illicit money transfer ingenuity. Leon Cohen-Levy and Mauricio Assor, father and son hoteliers, were accused of placing revenue from a sale of one of their hotels into an anonymous HSBC account that was officially held by a Panamanian firm, and the two men didn’t report their sale to the Internal Revenue Service.

The privacy laws behind Swiss banks have brought on a lot of suspicion regarding non-government and government organizations that have their money stored in offshore Swiss accounts. Accusations have been raised that the Swiss banks’ cloak of privacy has protected drug lords, dictator, suspected tax evaders, and terrorists.

Sound like fun?  Think again

America is proactively looking to uncover any American money that has been laundered using Swiss banks. Back in January of 2003, the U.S. Treasury announced that it would be signing an agreement with Switzerland that will involve sharing information for tax purposes. In March 2009, Switzerland agreed to increase their anti-money laundering laws to honor their agreement with the U.S. So now that the 2009 treaty is in effect, account holders of Swiss bank accounts are required to be identified and any transactions that are suspicious must be reported to the Money Laundering Reporting Office.

Criminal charges are also to be filed against 4,000 or so Americans who had an account with UBS. These account holders will be fully audited and will be liable for tax repayments and penalties, unless they are given leniency by the 2009 IRS voluntary disclosure program. This program has since ended, but the Justice Department and IRS are still putting pressure on suspects of UBS and other offshore bank account holders.

With the U.S. deficit mounting, and taxes inevitably on the rise, more and more U.S. citizens are being tempted to open up offshore accounts for their money. Even with all of the risks involved, like imprisonment, large fines, and disclosure threats, some are still risking it anyway. I, on the other hand, prefer just to keep my money close by.

This post comes from the NerdWallet.com team of financial bloggers and experts in helping consumers compare rewards credit cards.

Where can you turn? If you are eligible to join a local credit union, you may want to stop by a branch and check out their CD’s. Sometimes local credit unions can provide slightly higher CD rates than large national banks. For example, America Airlines Federal Credit Union (a credit union for employees of AA and their families) has a 5 year CD yielding 2.88% APY – still 0.12% under our goal of 3.0%. A couple weeks ago we were forwarded a tip on a credit union in Maryland which was offering a 3.10% APY 5 year CD, and at that time it was the best 5 year CD rate in the country. However for most of us, 3.0% APY CDs are unattainable with terms of 5 years or lower.

Related: Check out our archive of 3.0% bank CDs.

So what can you do to secure an FDIC insured (or NCUA insured) investment yielding at least 3.0%? In short, you’ll have to start shopping around for different types of investment vehicles. Unfortunately the certificate of deposit market isn’t quite ready to provide these returns on a nationwide basis, however some accounts may be able to. An account given much recognition here on BankVibe.com can usually provide APY’s generously above the 3.0% mark. These accounts are referred to as “rewards checking accounts.”

Noteworthy Rewards Checking Accounts From Around the Country:

(Rates accurate as of Jan 2011. Institutions listed below may be geographically exclusive.)

- Liberty National Bank (out of Oklahoma) has a “Kasasa Checking Account” yielding 4.11% APY on balances up to $10k.

- Consumers Credit Union (out of Illinois) has a “Rewards Checking Account” yielding 4.09% APY on balances up to $10k.

- Lake Michigan Credit Union has a “Max Checking Account“ yielding 4.00% APY on balances up to $15k.

- Inland Northwest Bank has a “Rewards Checking Account” yielding 3.80% APY on balances up to $25k.

- Evantage Bank has a “Rewards Checking Account” yielding 3.74% APY on balances up to $10k. We reported on Evantage Bank’s money market account in 2009 when they had a mega money market account yielding 3.10% APY (unfortunately this rate has been dropped considerably since then).

Keep in mind these “rewards checking accounts” have strict monthly requirements in which you must follow to earn the advertised APY. These requirements generally include: a specific number of debit card transactions each month (usually around 10), setting up an automatic recurring payment, and receiving e-statements. Check with the individual institution for their specific requirements.

Attention! – The Information Below is Outdated and No Longer Accurate -

Sallie Mae just lowered their online savings account rate last week to 1.10% APY (from 1.25 APY). Of all the online banks offering money market accounts or online savings accounts, Sallie Mae has consistently remained the forerunner for interest rates. Plus, their terms and conditions remain fairly lenient as well. They have no minimum balance requirements and no monthly fees.

Top Money Market Rates by Online institutions:

Sallie Mae: 1.10% APY with no fees or minimum balance requirements.

American Express FSB: no fees or minimum balance requirements.

Capital One Bank: no fees and a minimum balance requirement of $1,000.

Features, Terms and Conditions w/ Sallie Mae Online Savings Account:

- Earn 5X more on your savings

- No Minimum Balance — Easy to start

- No Monthly Fees — More Money to Save

- Daily Compounded Interest — It all Adds up

- FDIC Insured — Peace of Mind

- Deposits insured by the FDIC up to $250,000

Apply Now!

If you’ve been trying to find a decent yield for your savings lately then you’ve most likely been like the rest of us – discouraged. And rightfully so. The average APY provided by online savings accounts and money market accounts currently sits below 0.90% APY.

So if you’re in the market for the highest yield with the least strings attached, check out Sallie Mae. As an online banking institution they are able to cut back on a lot of overhead expenses most banks and credit unions incur. This allows them to provide more lucrative savings rates to their customers.  Sallie Mae’s Online Savings Account is currently paying a industry best 1.10% APY on their online savings account. What’s impressive about this rate is that the yield is higher than the current national average for 18 month and even 2 year CDs (certificate of deposits) and it possess much more flexibility than a bank CD does.

Here are the features and benefits of this account:

- Earn 5X more on your savings and an industry best APY!

- No Minimum Balance — Easy to start

- No Monthly Fees — More Money to Save

- Daily Compounded Interest — It all Adds up

- FDIC Insured — Peace of Mind

- Deposits insured by the FDIC up to $250,000

Discover Bank High Yield Savings Account

Discover Bank Money Market Account Quick Facts and Features:

- Fast and Free Online Money Transfers

- 24/7 Customer Service

- Highest Yield on the Market!

- FDIC insurance up to $250,000

Terms and Conditions:

Assumes principal and interest remain on deposit and interest rate does not change for the selected time period.

- You may make up to six preauthorized transfers from your Online Savings Account per statement cycle, including automatic and telephone transfers.

- Annual Percentage Yield (APY). APY applies to personal accounts only. Online Savings Account rate based on a $500 minimum balance. Rate may change after account is opened. Fees could reduce earnings on the account. Advertised rate is valid as of 08/31/2010 and subject to change daily without notice.