NEW YORK (MONEY Magazine) - If a high-yield savings account sounds like an oxymoron, get ready for a pleasant surprise: After the Federal Reserve's marathon of interest-rate hikes since mid-2004, short-term rates hover around 4.5 percent, while long-term yields have stayed the same, at times even dipping below shorter-term ones -- an unusual relationship that economists call an inverted yield curve.
What that means for you: You can get some of the highest yields around in some of the safest investments there are -- savings and money market accounts. 
|
 |
| Bank Money-Market Accounts |
yield |
minimum investment |
| AVERAGE |
0.01 |
|
| HSBC (New York) 888-404-4050 |
4.80 |
$1 |
| VirtualBank (Florida) 877-998-2265 |
4.60 |
100 |
| UmbrellaBank.com (Alabama) 866-242-0065 |
4.60 |
1,000 |
| Corus Bank (Illinois) 800-989-5101 |
4.53 |
100 |
| Park National Bank (Illinois) 866-727-5628 |
4.53 |
100 |
|
|
|
| Taxable Money-Market Funds |
yield |
minimum investment |
| AVERAGE |
4.00 |
|
| PayPal Money Market Fund1 402-935-7733 |
4.58 |
1 |
| Transamerica Premier Cash Reserve Inv.1 800-892-7587 |
4.46 |
1,000 |
| McMorgan Principal Preservation1 800-831-1994 |
4.38 |
5,000 |
| TIAA-CREF Money Market Fund 800-842-2888 |
4.36 |
2,500 |
| Vanguard Prime Money Market Fund Retail 800-851-4999 |
4.36 |
3,000 |
|
| Tax-Exempt Money-Market Funds |
yield |
minimum investment |
| AVERAGE |
2.62 |
|
| Alpine Municipal Money Market Fund Inv.1 888-785-5578 |
3.18 |
2,500 |
| Columbia Municipal Reserves Z1,2 800-345-6611 |
3.12 |
1,000 |
| Vanguard Tax-Exempt Money Market Fund 800-851-4999 |
3.11 |
3,000 |
| Marshall Tax Free Money Market Fund Y1 800-236-3863 |
2.90 |
1,000 |
| DWS Tax-Exempt Money Fund 800-621-1048 |
2.83 |
1,000 |
|
| Taxable Short-Term Bond Funds |
yield |
minimum investment |
| AVERAGE |
4.06 |
|
| DWS Short Term Bond AARP1 800-253-2277 |
5.21 |
1,000 |
| Vanguard Short-Term Investment-Grade Inv. 800-851-4999 |
4.53 |
3,000 |
| Vanguard Short-Term Bond Index Inv. 800-851-4999 |
4.52 |
3,000 |
| Fidelity Short-Term Bond 800-343-3548 |
4.42 |
2,500 |
| DWS Short Duration Plus Inv.1 800-621-1048 |
4.40 |
1,000 |
|
| Tax-Exempt Short-Term Bond Funds |
yield |
minimum investment |
| AVERAGE |
3.14 |
|
| Alpine Tax Optimized Income Inv.1 888-785-5578 |
3.58 |
2,500 |
| Wells Fargo Adv. S/T Muni Bond Inv.1 800-359-3379 |
3.58 |
2,500 |
| DWS Short Term Municipal Bond Inv.1 800-621-1048 |
3.49 |
1,000 |
| Wells Fargo Adv. Ult. S/T Muni Income Inv.1 800-359-3379 |
3.25 |
2,500 |
| Schroder Short-Term Municipal Bond Adv. 800-464-3108 |
3.24 |
10,000 |
|
| Six-Month CDs |
yield |
minimum investment |
| AVERAGE |
2.96 |
|
| KeyDirect (Ohio) 800-872-5553 |
4.81 |
5,000 |
| Corus Bank (Illinois) 800-989-5101 |
4.80 |
10,000 |
| VirtualBank (Florida) 877-998-2265 |
4.80 |
10,000 |
| UmbrellaBank.com (Alabama) 866-242-0065 |
4.79 |
1,000 |
|
| One-Year CDs |
yield |
minimum investment |
| AVERAGE |
3.44 |
|
| VirtualBank (Florida) 877-998-2265 |
5.10 |
10,000 |
| Corus Bank (Illinois) 800-989-5101 |
5.09 |
10,000 |
| M&T Bank, NA (New York) 800-528-6532 |
5.06 |
5,000 |
| UmbrellaBank.com (Alabama) 866-242-0065 |
5.05 |
1,000 |
|
| Five-Year CDs |
yield |
minimum investment |
| AVERAGE |
3.92 |
|
| KeyDirect (Ohio) 800-872-5553 |
5.15 |
5,000 |
| GMAC Bank (Delaware) 866-246-2265 |
5.10 |
500 |
| Eastern Savings Bank (Maryland) 800-787-8187 |
5.05 |
1,000 |
| Intervest National Bank (New York) 212-218-8383 |
5.05 |
2,500 |
