TIAA Direct Offering a 1.25% APY Online Savings Account
TIAA Direct, a banking subsidiary of TIAA-CREF, is currently offering a 1.25% APR yield on savings accounts with as little as $25 on deposit: http://tiaadirect.com/banking/bank/savings/index.html Although this rate can change at any time, it is one of the highest (if not the highest) on offer at the moment. As long as this rate lasts, it appears to be an attractive option for investors wanting a highly liquid spot to park funds. Of course, if the bank lowers their rate you can always go elsewhere.
Disclosure: I have no interest whatsoever in TIAA Direct and do not receive referral fees.