Discover Bank’s online savings account offering top rate!

Discover Bank High Yield Savings Account is still holding the top rate for online savings accounts and/or money market accounts. Currently if you open this account with Discover Bank you’ll be provided with an APY of 1.35%. To put this in perspective, the national average for these accounts is currently sitting at roughly 0.80% APY. Although this rate is variable (subject to change at anytime) it has remained the same for almost 3 months now. So if you’re in the market for a decent savings account and want to have easy access to your money, then you may want to look into this offer by Discover Bank.

Discover Bank Money Market Account Quick Facts and Features:

- Fast and Free Online Money Transfers

- 24/7 Customer Service

- Highest Yield on the Market!

- FDIC insurance up to $250,000

Terms and Conditions:

Assumes principal and interest remain on deposit and interest rate does not change for the selected time period.

- You may make up to six preauthorized transfers from your Online Savings Account per statement cycle, including automatic and telephone transfers.

- Annual Percentage Yield (APY). APY applies to personal accounts only. Online Savings Account rate based on a $500 minimum balance. Rate may change after account is opened. Fees could reduce earnings on the account. Advertised rate is valid as of 08/31/2010 and subject to change daily without notice.

Top 5 Online Bank Accounts for 2010

Since their inception in 1994 when Stanford Federal Credit Union began offering their members online interest banking services, online banks have generally been able to offer customers better savings rates and efficiency. Due to reduced overhead expenses, online banks have been able to pass their savings on to customers in the form of better interest rates. Today, because of the increasing number of FDIC insured online banks, they must differentiate themselves further – competing on interest rates, functionality and online features. And since savings rates (certificate of deposit, money market, etc) are all offering record low interest rates, we’d like to go over our top 5 online banking institutions that not only offer rates above the current national average but also have some fairly cool and handy features to boot!

BankVibe.com’s top 5 online banks:

1) Sallie Mae’s Online Savings Account – Since Sallie Mae came out with their savings products this year, they have consistently been listed at the top of the charts for interest rates. In fact, their online savings rate has been number one for the last two months! Want more than a great rate? This product also comes with NO fees, NO minimum balance required and daily compounded interest.

2) Discover Bank High Yield Savings Accounts – Claiming to earn you 5x the national rate average, Discover Bank’s online savings account offers a very clean user interface, 24/7 live support and fast and free online money transfers. They also offer the second best interest rate behind Sallie Mae.

3) Smary Pig’s Online Savings Account – Smarty Pig’s online account is one of the first we’ve seen with social networking features. Although it can be used as a standard online savings account it was originally designed to help you save for specific “big purchase items” such as college tuition, a new or used car, or a vacation in which your facebook/myspace friends could help you save for by contributing. They also offer highly competitive interest rates to their customers.

4) EverBank’s Online Savings Account – EverBank offers customers some of the top rates available and also throws in a bonus interest rate for the first 6 months your account is open. This bonus rate changes regularly but always hovers far above the current national average. This account comes with a minimum balance of $1,500 and you are allowed 6 withdrawals per month.

5) Ally Bank’s Online Savings Account – You may have heard of Ally Bank even before they had that name. Ally Bank is the former GMAC (the banking branch of General Motors). Since GMAC collapsed, they attempted to re-brand themselves with a new name. Today, Ally Bank frequently offers top rates, however, lately they have slipped in BankVibe.com’s charts, however they still offer a very easy to use banking interface and their accounts come with no minimum balances and no monthly fees.

A few years back MSN’s money central disclosed their 10 top online banking institutions (shown below or linked to here) and highlighted the desirable features each offered. However, many of these institutions either collapsed in the 2008 bank collapse or have been defeated by some of the new comers.

SallieMae’s Online Savings Account offering top rates!

SallieMae has recently moved to our #1 spot for online savings account rates. Right now they have a very flexible and lucrative online savings account offer that comes with with an APY of 1.40% APY. To put this offer in perspective, the national average sits at just 0.80% APY. Plus, the interest rate paid on this online savings product provides a higher APY than the current average for 12 month CDs (national avg. sits at 1.20% APY) and this one’s far more flexible because there are no minimum balance requirements or fees.

Apply Now!

Like all money market and online savings accounts, this one comes with a variable interest rate that is subject to change at anytime without notice.

Open Online:

Click Here to open the account online or to learn more about the product. To open online you will need just your social security number and your drivers license. You can fund this account through several different ways, the most convient being an ACH transfer from a current bank.

Quick Facts from SallieMae:

• Earn 5X more on your savings
• No Minimum Balance — Easy to start
• No Monthly Fees — More Money to Save
• Daily Compounded Interest — It all Adds up
• FDIC Insured — Peace of Mind
• Deposits insured by the FDIC up to $250,000

Top Online Savings Account Rate provided by Discover Bank

Discover Bank’s Online Savings Account currently boasts the highest APY available nationwide (more than 5x the national average!). As of the 20th of this month (April) Discover Bank is offering new and current customers a whopping 1.35% APY on balances of at least $500. Like all money market and online savings accounts, this is a variable interest rate and is subject to change at anytime without notice (please refer to the date of this article for accuracy).

Go To: Discover Bank’s Online Savings Accounts

Terms and Conditions:

1. The APY for the Online Savings Account as of April 20, 2010 is more than 5 times the national average APY for interest-bearing savings accounts with balances of $500 as reported by Informa Research Services, Inc as of April 20, 2010. Although the information provided by Informa Research Services has been obtained from the various institutions, the accuracy cannot be guaranteed. Rates are subject to change at any time.

2. You may make up to six preauthorized transfers from your Online Savings Account per statement cycle, including automatic and telephone transfers.

3. Interest-bearing Savings National Average APY is based on top 50 U.S. banks by deposit provided by Informa Research Services, Inc as of April 20, 2010.

4. Interest-bearing Checking National Average APY is based on top 50 U.S. banks by deposit provided by Informa Research Services, Inc as of April 20, 2010.

* Annual Percentage Yield (APY). APY applies to personal accounts only. Online Savings Account rate based on a $500 minimum balance. Rate may change after account is opened. Fees could reduce earnings on the account. Advertised rate is valid as of 04/20/2010 and subject to change daily without notice.

Capital One’s Online Savings Account: Get Paid Twice!

Capital One Direct has an interesting promotional offer going with their “Interest Plus Online Savings Account.” Currently when you open one of these online savings accounts you will not only receive an interest rate of 1.60% APY (national average sits at 1.05% APY) but also a 10% bonus on your interest earned (paid quarterly).

For example, if you maintain a balance of $15,000, which is the minimum requirement for this bonus rate, you will receive $240 with the 1.60% interest rate, then an additional $24 as an added bonus ($240 x 10.0% Bonus = $24.00).

Capital One’s savings accounts are FDIC insured and available to consumers nationwide.

Details of InterestPlus Online Savings by Capital One:

• It starts with a great rate: You’ll earn a 1.60% Annual Percentage Yield (APY)* on balances of $2,500 or more. That’s one of the highest rates you’ll find in a savings account.
• Quarterly bonus: You’ll get a 10% bonus on your interest earned four times a year. Just keep an average balance of $15,000 in your savings account each month or use a Capital One credit card at least once a month to qualify.
• Never charged for any fees: Rest easy knowing fees don’t apply to this account.

Rewards checking accounts sustain high yields throughout 2009

If you’ve kept tabs on savings rates throughout 2009 you’ve undoubtedly noticed the downward trend which plagued the entire year. In the beginning of ’09 rates were still respectable — 12 month CD’s providing 4% APY, 6 month CDs providing a 3.0% APY and in rare, promotional cases, 7 month CD’s were providing 7% APY — as we mentioned in last weeks post, however, these rates have long been extinct. Today, you’d be hard pressed to find a 6 month CD yielding above 1% APY and a 12 month CD above 1.75% APY. Some financial analysts have even brought up the increasingly apparent fact that in most cases you aren’t even getting ahead of inflation, which in turn, eats up any potential interest you may have incurred.

So were there any real winners in the savings arena in 2009? Well, we’d like to think so, although it may just be a consolation prize due to lack of competition from traditional savings accounts (ie. certificate of deposits, money market accounts, etc).However, Rewards checking accounts, or interest checking accounts, still maintained very respectable yields through the previous year.

Today you can still find these accounts providing 4.0%, 5.0% and even 6.0% annual percentage yields, however it takes a proactive approach from the saver each month.

Here is the run down on these accounts (in a nut shell) for those who are unfamiliar…

These accounts are for those looking to invest anywhere from $1,000 to $100,000 in a liquid savings account. To earn the advertised interest rates (which vary between 2.50 and 6.0% APY) you must make a certain amount of debit card transactions from the account each month as well as set up at least one automatic payment. This can be a car payment, rent, phone bill, etc… basically anything that reoccurs each month. They may also ask of you to meet additional requirements such as enroll in e-statements, open another account with the bank, etc. The accounts are more frequently found with credit unions but are being picked up by larger banks as well. Browse through our archive of the best rewards checking account offers from 2009.

Outstanding savings rates at this SEG based credit union

Utilities Employees Credit Union, based out of Pennsylvania, is an SEG (select employee group) based credit union which is currently providing some phenomenal CD rates, money market rates and checking rates to it’s members.

Thanks to BankVibe reader Jamie for giving us the heads up on these rates! Below are some of their noteworthy products compared to the current national averages.

They have a 6 month CD yielding between 1.75% APY and 2.25% APY depending on your deposit amount. The rates are set up in tiers based on the amount in which you can invest. If you invest between $500 (minimum deposit required) and $9,999 you will receive a yield of 1.75% APY. If you invest between $10k and $74,999 you will earn 2.05% APY and if you deposit $75,000 or more you will earn an unheard of 2.25% APY on this 6 month certificate of deposit!

Other UECU products which are smashing the national averages…

12 month CD yielding between 1.85% APY and 2.35% APY depending on deposit amount.

2 year CD yielding between 2.05% APY and 2.55% APY depending on deposit amount.

3 year CD yielding between 2.25% APY and 2.75% APY depending on deposit amount.

4 year CD yielding between 2.50% APY and 3.00% APY depending on deposit amount.

5 year CD yielding between 2.75% APY and 3.25% APY depending on deposit amount.

The current national average for 6 month CDs is 1.05% APY, 12 month CDs is 1.51% APY, and 3 year CDs is 2.14% APY.

They also have an “Advantage Money Market Checking Account” yielding 1.0% APY for balances between $1.00 and $9,999, 1.75% APY for balances between $10k and $49,999, and a solid 2.50% APY for balances of $50k and above. The national average for money market rates sits at 0.93% APY.

Who exactly is eligible for membership?

Regular employees, temporary or contract employees, retirees of UECU’s sponsor companies and their subsidiaries. Family members of the above are also eligible. Family members include: spouse, domestic partner, children and step-children, grandchildren, parents and step-parents, and siblings.

Best savings account rates in California: Top 2

If you’re in the market for a traditional savings accounts – one with a variable interest rate and limited withdrawal allowances, don’t expect much in the way of great interest rates. The average yield for online savings accounts (money market accounts) are providing yeilds of less than 1.00% APY and the average yield for 12 month CDs (fixed interest rate for 1 year with penalties for early withdrawal) are garnering a rather pathetic 1.50% APY.

However, if you reside in the state of California and are willing to consider a couple of credit unions as potential options for your business, then you may be able to snag some higher rates. Below are summaries of two accounts that have better than average savings rates as well as a unique approach.

First is Alliant Credit Union, based out of San Francisco, California. Their savings accounts are currently yielding 2.0% APY (almost twice the national average for these particular accounts). The only problem with Alliant is that their doors are not open to everyone. If you do not fit within their membership eligibility guidelines then you’re most likely out of luck.

The second option, however, opens their doors to potential customers nationwide so long as you’re willing to open a membership savings account and maintain a balance of $5.00. Provident Credit Union, out of Redwood Shores has many locations throughout California. They have branch locations in Belmont, Dale City, Eureka, Folsom, Hayward, Los Gatos, Oakland, Millbrae, Palo Alto, Redwood City, Redwood Shores, San Francisco, San Jose, San Mateo, San Ramon, Sunnyvale, and Walnut Creek. Their savings account is called the “Accumulator Account” and promises a 1 year savings plan with a much higher rate than their 1 year CD (certificate of deposit). What’s unique about this account is that they guarantee the interest rate through 12 months (even if the market falls drastically). The “floor yield” is determined by the credit union and adjusted in January of each year. For 2008, the interest rate has been set at a now seemingly high 2.00% APY, however this rate will be readjusted next month.

Smarty Pig’s Online Savings Account: 2.01% APY!

Smarty Pig’s online savings account is currently yielding an interest rate which absolutely demolishes the national average for these particular accounts, plus they have some innovative features/tools to help you save!

Smarty Pig’s online savings account rate: 2.01% APY national average: 1.25% APY

SmartyPig, based out of Des Moines, Iowa was launched in April of 2008 and is a banking partner of West Bank and a subsidiary of West Banc Corp. Because West Banc Corp is member FDIC your funds held in Smarty Pig’s savings accounts will be federally insured (by the FDIC) up to $250,000.

Smarty Pig’s Unique Approach to Savings…

Open a goal-based savings account that can be attached to social networking features (Facebook, MySpace, Blogger, Google, etc.) allowing your friends and family to view and even contribute to your savings goals.

You then set a time in which you would like your goal to be completed, along with an initial deposit (the minimum deposit required is only $25.00). You can allow anyone to contribute and view your goal (or nobody) it’s up to you.

Some customers have set up goals to either help pay for Christmas shopping, pay off a credit card, pay off a student loan or save for a vacation. 

…And to help you reach your goal they claim to consistently provide a savings rate which beats the national average. The current rate is 2.01% APY.

ING Direct’s Black Friday/Cyber Monday special

Jeff over at ING Direct gave me the heads up on a fairly interesting promotion that they are having this month. It’s called the “Black Friday special” and it is designed to discourage the urge to overspend this holiday season.

Here is the scoop from Jeff’s email:

Americans plan to spend less on gifts this holiday season. To help holiday savers stock up on savings this year, ING DIRECT is announcing that it will offer four Black Friday and Cyber Monday specials. No long lines or 4am wake up calls needed for these Saver deals.

ING DIRECT will offer $683 off Easy Orange and Orange Mortgage (their mortgage products) closing costs for anyone who applies on Black Friday.

Why $683?

That’s what the average American will spend on gifts this holiday season, according to the National Retail Federation.

On Cyber Monday, November 30, ING DIRECT’s brokerage, ShareBuilder, will offer a 20 percent rebate on trades to help investors save money while they grow their investments.

There’s no avoiding the hustle and bustle of holiday shopping, but it’s still a great time of the year to think about saving money, even when you’re spending a little bit of it. ING Direct claims these blockbuster specials are sure to bring holiday cheer to those Americans who are building emergency funds, eliminating debt and saving for retirement.