Savings rates are averaging 1.48% APY, but you can earn a little more than that with a Capital One Direct Banking savings account. Savings rates on Capital one accounts depend on the account balance, and you need a minimum of $10,000 to earn a 1.6% APY. Other details of the savings account offer include:

• Free online transfers to and from non-Capital One banks
• No fees
• No minimum balance required
• Balances under $10,000 earn a 0.6% APY (as of 10/08/09)
• Savings are FDIC insured up to $250,000 per depositor

Savings rates can change at any time. Interest is compounded daily and credited monthly. There can only be six withdrawals during each calendar month. You cannot get an ATM card with this savings account.

It takes three business days for a withdrawal to be completed when money is transferred to another account. Deposits from external accounts are completed one business day after the transfer is initiated. You can deposit money into savings by online transfers, depositing a check, or wiring money. Accounts from several banks can be linked to a Capital One Direct Banking savings account.

Account statements are sent quarterly, but if there is activity in the account statements are sent monthly.

In financial news this week Federal Reserve officials said they don’t expect a change in interest rates anytime soon. Fed Chairman Ben Bernanke had indicated the Fed might raise interest rates sooner than expected.  Some economists think that a change could come as early as April.

Bernanke’s comments helped lift the U.S. dollar, which had been hurt by financial news on the economy that included a worrisome jobs report last week. The U.S. unemployment rate was 9.8% in September, the highest rate since 1983, according to the Bureau of Labor Statistics. The Senate may vote next week to extend unemployment benefits.

Not raising interest rates means that those who put money in savings accounts, certificates of deposit, and money market accounts will likely continue to see low rates of return on their money for some time to come. Currently, money market rates are averaging 1.31% APY, savings accounts are 1.48%, and one-year certificates of deposit are 1.68%.

Although savings rates remain low, it’s not a good idea to base your savings plan on moves in the economy. Stay consistent with your savings goals and continue to fund savings, money markets, and CDs on a regular basis to build up your nest egg.

Do you want to get your kid to save more money for college? The Ultima Bank Minnesota SMART Smart Savings account can help. SMART, which stands for School Money at Right Time, is for savers who are 18 or younger. Details of the savings account include:

• No minimum deposit required
• Savings rate of 2.02% APY on any amount
• Interest begins accruing on first business day after deposit and is credited quarterly
• Savings rate is subject to change at any time
• Withdrawals before 18th birthday are subject to a penalty equal to six months interest
• Limited number of monthly transactions after 18th birthday
• SMART savings converts to a regular savings account on 19th birthday

The SMART savings account is designed to complement Ultima Bank Minnesota’s student checking account. Using the savings and checking accounts can help kids learn to manage money responsibly from a young age.

The checking account has no minimum balance requirement and has no limitations on writing checks. The account also offers the following freebies if the account is administered electronically–online statements, direct deposit, transfers between accounts, and bill payment. Statements received by mail are free, but if check images are included there is a $3 fee.

So you want to stash some cash in a safe place but aren’t sure whether or not to open a money market account or a certificate of deposit. Here are some things to consider.

Money Markets Offer Checks

First, let’s look at how these products work. A money market account is basically a savings account, but pays more than many regular savings or checking accounts. Right now the average yield on money market accounts is 1.3%, nothing to write home about but you do get a small return on your money.

Money markets usually allow you to write a limited number of checks. Money market rates can fluctuate. Begin hunting for money market rates here.

CD Rates Vary Based on Term

Certificates of deposit tie up your money for specific periods of time for the privilege of earning interest. CDs can have a maturity of a few weeks to several years. The longer your money is in a CD, the higher the rate of interest you can get. Right now, the average 2-year CD rate is 1.96%. Search for CD rates here.

If you want your money to stay safe, CDs offer FDIC insurance up to $250,000 per individual. But you won’t have access to your money during the term of the CD and have to pay a penalty for early withdrawal.

Federal Reserve Chairman Ben Bernanke says the recession is likely over. However, he said that although the economy is probably growing now, unemployment will continue to rise from its current level of 9.7%. About 6.9 million jobs have been lost since the recession began in December 2007, and many of those people will have a tough time for a while to come.

“From a technical perspective, the recession is very likely over at this point. It’s still going to feel like a very weak economy for some time because many people will still find that their job security and their employment status is not what they wish it was,” Bernanke warned.

This means that many Americans who have drastically cut back spending, will probably  continue to hold on to their wallets and put more money into savings. The average U.S. savings rate has risen to 4.5% this year.

So where should you put your money if you want to save more whether the economy is truly on the upswing or not?  A certificate of deposit can be a good place to put money that you won’t need to get at for a while. Begin your search for a certificate of deposit here. If you need to keep your money more liquid, look for basic savings and money market accounts.