So you have to put the title into context. Are the interest rates I am going to mention high? Not when compared to those of a year or so ago , but they are high when compared to similiar options. First, I am not saying these are the best yields one can get. However, for stashing cash and still having it fairly liquid and available these will give you a some return for your investment.

   As of today if you want to open an account with no minimum deposit your best options are …
          HSBCDirect – 3.50%
          INGDirect   – 3.00%
          Emigrant Direct – 2.75%
          Citi UltraSavings  - 2.25%

   Now , these of course pale in comparise to the 4.75% and 5.25% of yesteryear, but are still a solid option if you want an emergency fund that is very liquid , but will at least keep pace with inflation. Also, important to note is these accounts are FDIC insured ( what does this mean? , click here ).  If you are willing to stomach a little more risk and expand your knowledge read my article, Saving and Building Wealth through Dividends.

Press Release
 Release Date: May 2, 2008

For immediate release
The Federal Reserve Board on Friday proposed rules to prohibit unfair practices regarding credit cards and overdraft services that would, among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances. 

The rules, proposed for public comment under the Federal Trade Commission Act (FTC Act), also would forbid banks from imposing interest charges using the “two-cycle” billing method, would require that consumers receive a reasonable amount of time to make their credit card payments, and would prohibit the use of payment allocation methods that unfairly maximize interest charges. They also include protections for consumers that use overdraft services offered by their bank.

“The proposed rules are intended to establish a new baseline for fairness in how credit card plans operate,” said Federal Reserve Chairman Ben S. Bernanke.  “Consumers relying on credit cards should be better able to predict how their decisions and actions will affect their costs.”

The proposed changes to the Board’s Regulation AA (Unfair or Deceptive Acts or Practices) would be complemented by separate proposals that the Board is issuing under the Truth in Lending Act (Regulation Z) and the Truth in Savings Act (Regulation DD).

The provisions addressing credit card practices are part of the Board’s ongoing effort to enhance protections for consumers who use credit cards, and follow the Board’s 2007 proposal to improve the credit card disclosures under the Truth in Lending Act. The FTC Act proposal includes five key protections for consumers that use credit cards:

Banks would be prohibited from increasing the rate on a pre-existing credit card balance (except under limited circumstances) and must allow the consumer to pay off that balance over a reasonable period of time.

Banks would be prohibited from applying payments in excess of the minimum in a manner that maximizes interest charges.

Banks would be required to give consumers the full benefit of discounted promotional rates on credit cards by applying payments in excess of the minimum to any higher-rate balances first, and by providing a grace period for purchases where the consumer is otherwise eligible.

Banks would be prohibited from imposing interest charges using the “two-cycle” method, which computes interest on balances on days in billing cycles preceding the most recent billing cycle.

Banks would be required to provide consumers a reasonable amount of time to make payments.

Federalreserve.gov – Click for Full Story