While the historic low interest rates are good news to consumers who need to borrow money (that is if they qualify in the tight credit market), they are bad news for those needing to hoard cash. You are lucky to find a CD, money market, or a savings account paying 2% interest these days.
But there are a few banks around that still offer decent rates on savings accounts. One such bank I recently ran into is DollarSavingsDirect, a division of Emigrant Bank. It has been offering an unheard of 4% APY on savings accounts. In comparison, its sister unit, EmigrantDirect currently offers 2.5% savings accounts with no minimums. DollarSavingsDirect requires a minimum $1,000 deposit, there is apparently no maximum amount, and the accounts are FDIC insured.
Based on what I have found so far, this is not a teaser rate and people have actually been earning that interest rate on their deposits for a few months. Of course the rate is always subject to change and it probably will fall if interest rates remain this low or go even lower.
That's the basic problem of chasing higher rates. By the time or shortly after your money lands in the account, the rate could slide below your previous bank and you are faced with the decision of moving your cash again. And since your money doesn't earn any interest while in transition (which could sometimes take a week) your effective rate could end up being lower than what you had expected.
With electronic deposits (Automated Clearing House or ACH) the best day to request a transfer is on a Monday of a holiday-free week. That way you run a lower risk of having your money held up over the weekend or a holiday and losing extra days of interest earnings, while awaiting the completion of the transfer.
Note: I receive no compensation from the banks mentioned in this post.