Chase/Wamu is now 3% APY with their Savings account, and my guess is the rate will go down further. If you needed a brick and mortar bank with high interest rate, check out Citibank 3.50% APY Ultimate Savings. Currently, they are offering a $25 bonus for new customers with $1000 deposit and leave it for 3 consecutive months.

From the website:

$25 offer is only available for first-time Citibank deposit account customers, and will be paid only once to any individual. Persons who currently have or at any time have had a deposit account at Citibank (or any of its predecessor banks) are not eligible. To qualify for this offer you must: (1) Open and fund a new Ultimate Savings Account with a minimum initial deposit of $1,000 by using offer code CYA8 and (2) maintain a minimum balance of $1,000 in your account each month for the next 3 consecutive calendar months. $25 will be credited to your Ultimate Savings Account within 120 days from the date of satisfaction of offer terms. Account must be in good standing at the time of $25 credit. The amount of any bonus payment will be reported to the IRS as interest earned in the year credited.

Even if you do not qualify for the bonus, this is still a great rate especially if you have one near where you live. It has no monthly fee, no minimum balance, and no checking account requirement. You can also apply by phone by calling 1-877-695-9400 and mention code: CYA8