Capital One 360 is running their annual Financial Independence Day promotion, with what is traditionally the best bonus of the year for their 360 Savings and 360 Checking accounts. (Formerly known as ING Direct.) These online bank accounts offer no monthly fees and no minimum balance requirements, all with a decent interest rate. As a result, the savings account makes a great “online piggy bank” where you can make free transfers from your existing checking accounts from any bank into the 360 Savings account on a regular basis. Promo details:

360 Savings $76 Bonus

• Grab $76 when you open a 360 Savings® account.
• This has to be the primary account holder’s first 360 Savings account and it needs a $500 minimum deposit.
• The bonus starts earning interest on day 1, but you can’t take it out for at least 30 days.

360 Checking $100 Bonus

• Earn $100 when you open a 360 Checking® account. Sign up for fee-free 360 Checking®, make 5 Debit Card purchases or 5 mobile deposits with CheckMateSM within 45 days and snag a cool $100 on day 50.
• This has to be your and your joint account holder’s (if you have one) first 360 Checking account.
• Open 360 Checking from June 30th – July 3rd and make a total of 5 Debit Card purchases or 5 CheckMateSM deposits or any combination of the two within 45 days.
• Your $100 bonus will be automatically deposited into your account on day 50.

Our family keeps a full year of expenses put aside in cash reserves; it provides us with financial stability with the additional side benefits of lower stress and less concern about stock market gyrations. Emergency funds can actually have a better return on investment than what you see on your bank statement.

Interest rates are still depressingly low, and I haven’t made any changes to how I hold my cash reserves in the past 12 months. However, I figured an update is in order as some of you may not be aware of the many options besides your too-big-to-fail megabank savings account paying 0.000001%.

My Cash Reserves
First, a quick recap of how I have our cash reserves split up. Keep in mind that most of the rates that I locked in are no longer available, but I did blog about them at the time.

• Ally Bank Online Saving (0.87% APY of 6/24/14) as a no-fee overdraft backup to my Ally Interest Checking (0.10% APY on balances under $15k, 0.60% APY over $15k of 6/24/14), that way I can keep minimal balance in checking. Ally checking also has unlimited ATM fee rebates and no fees. I know there are some savings accounts paying a tiny bit more, but not worth the trouble for less than 0.1% difference on $10,000.
• Ally Bank CDs earning between 1.84% and 3.09% APY. These are old 5-year CDs with a short 60-day interest penalty. Current CD rate of 6/21/14 is 1.60% APY with 150-day early withdrawal penalty.
• PenFed CDs earning 5% APY. Long gone, although earlier this year PenFed did offer 5-year CDs at 3% APY (no longer available). Current rates are yawn-tastic.
• I also have several US savings bonds that I now consider part of my retirement portfolio as opposed to cash reserves, as I don’t think I’ll ever want to cash them in before full maturity. More info below.

Best Currently Available Interest Rates
If I wasn’t already invested as outlined above, here are the FDIC-insured or government-backed opportunities that I would be looking into based on my needs.

• Everbank Yield Pledge Money Market and Everbank Interest Checking account both offer 1.40% APY guaranteed (up to $50k each) for the first 6 months for new accounts. Since it is fixed, this is essentially a 6-month CD with a higher rate than any other 6-month CD rate out there and with no early withdrawal penalty to worry about.
• “Series I” US Savings Bonds offer rates that are linked to inflation. “I Bonds” bought right now will earn 1.94% total for the first six months, and then a variable rate based on ongoing inflation after that. You must hold them for a year, and if you redeem them within 5 years you lose the last 3 months of interest. While future rates are unknown, the net rate after a year is likely to be higher than any 1-year CD. More info here.
• Rewards checking accounts pay above-average interest rates, but only if you to jump through many hoops. Make a mistake and you’ll forfeit your interest for that month. Rates can also drop quickly, leaving a “bait-and-switch” feeling. If you’re up for it, a recent example is Consumers Credit Union where you can earn up to 5.09% APY on up to a $10k balance, although 3.09% APY is probably a more reasonable expectation (there are a lot of hoops).
• Certificates of deposit. If you have a large cushion, it’s quite likely to just sit there for years. Why not put some money in longer-term investments where you can still take it out in a true emergency and pay an early withdrawal penalty. Synchrony Bank (formerly GE Capital Retail Bank) is offering a 5-year CD paying 2.30% APY for $25k+ balances (2.25% APY for $2k+) with an early withdrawal penalty of 180 days interest.
• Willing to lock up your money for even longer? Tobyhanna Federal Credit Union has a 7-year CD paying 3.04% APY, however the early withdrawal penalty is a full 2 years of interest. More info here.
• Even looooonger? “Series EE” US Savings Bonds are not indexed to inflation, but they have a guarantee that the value will double in value in 20 years, which equals a guaranteed return of 3.5% a year. However, if you don’t hold for that long, you’ll be stuck with the normal rate which is quite low (currently a sad 0.50% APY). You really want to be sure you’ll keep it for 20 years.

All rates are believed current as of writing, 6/24/14.

Citibank is running a $100 bonus promotion good for existing checking account customers. You have to first enroll in the offer by 7/31/14, and then you can earn $10 per month for doing each of the following activities from 6/1/14-12/31/14:

• Online bill payment
• Mobile check deposit
• Outgoing Popmoney person-to-person money transfer

So you could technically get $30 a month, but the total possible bonus over the entire 7 month period is only $100. I don’t think this promotion is juicy enough to warrant opening a new Citi checking account, but it’s a pretty easy $100 if you already have one. Bonuses arrive within 60 days after a month with qualifying activity, and will only get reported on a 1099-MISC if you earn over $600 in miscellaneous taxable income from Citibank in a year.