For those interested in the dynamics behind today's low savings and CD rate environment, the NY Times published a good article by ERIC DASH and NELSON D. SCHWARTZ over the weekend examining the impact of a glut of cash on bank rates. Banks are swimming in cash. From the article:

"Droves of consumers and businesses unnerved by the lurching markets have been taking their money out of risky investments and socking it away in bank accounts, where it does little to stimulate the economy.

Though financial institutions are not yet turning away customers at the door, they are trying to discourage some depositors from parking that cash with them. With fewer attractive lending and investment options for that money, it is harder for the banks to turn it around for a healthy profit.

Others are finding more subtle ways to stem the flow. Besides paying next to nothing on consumer checking accounts and certificates of deposit, some giants — like JPMorgan Chase, U.S. Bancorp and Wells Fargo — are passing along part of the cost of federal deposit insurance to some of their small-business customers."

The article interviewed Don Sturm, the owner of two banks based inn Colorado. Sturm said he has record deposits and nothing to do with the money. He is lending less to businesses and has scaled back loans to real estate and ski resorts. The article also discussed how Hyde Park Savings Bank located outside of Boston has lowered rates in an attempt to shed depositors.

Out of curiosity, I decided to check out both banks.

• American National Bank's savings and CD rates are below the national average. For instance, the national average on a 12-month CD is 0.60% while American National is paying 0.20%. It's 3-year CD is paying .40% versus the national average of 1.14%. From a financial perspective, the bank has elected to shrink, with its assets dropping from $2 billion in 2007 to $1.7 billion in 2011. Overall, with a Texas Ratio of 17.36%, the bank looks to be in good financial shape so the reduction in size appears voluntary. The decision to shrink in size is most likely due to its particular business or local economic conditions.
• Hyde Park Savings Bank is more average. It's CD rates are on par with the national averages - 12 month CD of .65% versus national average of .60%. But like American National, Hyde Park shows a decline in assets and deposits over the past five years. The bank is also shrinking itself.

Management of these banks has decided to shrink in response to tough economic and lending conditions. But that's not true of all banks. Some banks are expanding and growing and have a greater need for deposit dollars. These are the banks you want to find if you are looking for the best rate. For example, in the Hyde Park area, there are several banks offering more competitive rates. Peoples Federal Savings Bank pays 0.80% for a 12 month CD, while Oneunited Bank pays 0.75%. It's not much higher but it's still more for the same exact product.

Every week, I feature banks that are cash hungry and willing to put a little extra yield behind their offer. They exist and should be recognized. And, as I discovered, banks paying higher rates are often more financially stable than their lower rate peers.

In addition, not all regions of the country are created equal. An analysis I did shows that bank demand for cash varies by region. Rates in some parts of the country can be more than double rates in other regions. In general, it seems to correlate with the regional economy.

So yes, banks are awash in cash and lowering rates. The news is grim. But there are two bright spots.

1. You can quickly shop around and find banks looking for your cash and willing to pay you more.

2. Eventually overall rates will go up. Nothing stays high or low forever.

Average savings account rates continue to fall, with average online savings accounts yielding 0.85% APY and average local savings account rates at 0.23% APY. But there's no reason to settle for average savings rates. We looked through our database of over 6,000 banks and 6,000 credit unions to find the best rates across the country.

Best Savings Account Rates

Credit Unions in Georgia took the top three spots on the best of the best rate tables this week.

1. AFLAC Federal Credit Union of Columbus, GA takes the top spot for its 2.410% APY for deposits up to $100,000. The credit union serves employees and employee families of Aflac Incorporated. The credit union has $167 million in assets. Its Texas Ratio is 15.88%, higher than the national credit union average of 10.30%. The credit union is NCUA insured.
2. Floyd County Postal Employee Credit Union of Roma, GA is offering a 2.30% APY savings account with a $1 minimum deposit. The credit union serves postal employees of Floyd County and their families. The credit union is very small with $4.9 million in assets. Its Texas Ratio is 10.83% in line with the national average. The credit union is NCUA insured.
3. Genuine Parts Credit Union of Norcross, GA is offering a 2.02% APY savings account with a minimum deposit of $50. This is another small credit union with only $8 million in assets. The bank has a low Texas Ratio of 1.08%.

There are thousands of credit unions across the country offering excellent rates with low fees across the country. Find savings account rates from credit unions in your local area by clicking on the "Savings" tab above.

But if you don't want to join a credit union, there are many local banks offering rates well above the national average.

1. Reynolds State Bank in Reynolds, IL is offering a passbook savings account that pays 1.51% APY with a $100 minimum balance. The bank has $90 million in assets and was established in 1888. The bank's financials look excellent, with an extremely low Texas Ratio of 2.51%. The bank is FDIC insured.
2. People's Bank of Seneca in Seneca, MO is offering a 1.50% APY savings account rate. The bank has $90 million in assets and a low Texas Ratio of 7.75%. The bank was founded in 1996 and is FDIC insured.
3. The Victory Bank of Limerick, PA has a Fortress Savings Account that pays 1.35% APY with a $2,500 minimum balance. The bank has $100 million in assets and a low Texas Ratio of 4.19%. One factor beyind the low Texas Ratio may be the fact that the bank was founded in 2008 and most of its loans were give after the financial crisis.

Lastly, if you prefer to bank online, there are some very attractive online savings rates that are well above the national averages.

• CNB Bank Direct is offering the top online savings account rate at 1.05% APY. CNB Bank Direct is a division of The Citizens National Bank of Bluffton. The Citizens National Bank of Bluffton is an FDIC insured institution founded in 1920. It has approximately $0.56 billion in assets and a Texas Ratio of 19.9%.
• Personal Savings from American Express, the banking division of American Express is offering a 1.00% APY savings account. Personal Savings by American Express is a division of American Express Bank, FSB.. American Express Bank, FSB. is an FDIC insured institution founded in 2000. It has approximately $38.98 billion in assets and a Texas Ratio of 5.93%

Find the best savings account rates from local banks in your area or view all online savings account rates by clicking on the "Savings" tab above.

All of the banks and most of the credit unions on BestCashCow have deposited insured by either the FDIC or the NCUA. That means you can get a higher rate with no additional risk to your money. That's easy money. At a time when bank rates are at record lows, you might as well earn the most that you can.

Massachusetts residents looking to take advantage of a competitive CD rate should look at Patriot Community Bank. It is currently offering some of the best CD rates in the state according to BestCashCow rate data. Its competitive rates include:

• Top 12-month CD rate of 1.25% APY
• Top 18-month CD rate of 1.35% APY
• Top 24-month CD rate of 1.65% APY
• Top 36-month CD rate of 2.00% APY
• Competitive 60-month CD rate of 2.50% APY

The minimum balance to open a CD is a relatively low $1,000. The 12-month CD rate requires that the individual also have a checking account with the bank. It's odd that only that term requires a checking account but I spoke to the bank and confirmed the information.

Account can only be opened in-branch so you'll need to make a trip to Woburn if you are interested (click for location information).

The bank was founded in 2006 and has $100 million in assets, making it a relatively small bank. It is FDIC insured. The bank has one branch located in Woburn, MA, about 10 miles outside of Boston. The bank's assets have grown from $32 million in 2006 to $102 million today. The Texas ratio of the bank was not available.