This is somewhat surprising timing for an uptick in savings rates given the latest announcements from the FED reaffirming the 2014 timeline for raising Read more...]]> Not sure if many of you have stopped by our savings rate database lately, but we have a new champion in rates. Currently CiT bank has just surpassed Barclays as the highest yielding online savings account with a 1.05% APY on balances of at least $25,000.

This is somewhat surprising timing for an uptick in savings rates given the latest announcements from the FED reaffirming the 2014 timeline for raising key rates. However, being relatively new in the online savings game, CiT likely made a smart move setting themselves apart from the competition in regards to rates.

Making More Sense of CiT’s Rate Hike:

Like we said CiT is relatively new, having only been on the seen for a few months. And since the release of their savings and CD products earlier this Spring they have been undergoing a fairly extensive marketing campaign.

As with every new online based savings account, you have to kind of take the market place by storm to receive much attention. And as a new savings account issuer, you really have only a few fronts to do this on. You can either come out with a new set of technological features that take advantage of user-requested capabilities like this, or with a new way of rewarding spending like this, or simply by offering the best rate – which is what CiT is doing.

CiT Bank recent rate history:

When CiT first issued this savings account it came with a still respectable 0.85% APY on daily balances of at least $25,000 or more. They then raised this rate to around 0.90% APY earlier this month and finally gave it an extra boost to it’s current level of 1.05% APY – allowing it to rest easily at the top of the charts (gaining them more exposure).

Our Take:

If you’re looking for an FDIC insured liquid savings account and have the required $25k in cash, then this is the way to go simply because you’ll be garnering the most in returns. However, like all money market and online savings accounts, the interest rate is variable and liable to change at anytime. Many new banks, or banks with a new online presence, come out of the gates sprinting with an enticing APY only to drop it once they’ve shored up enough new accounts. So I guess we’ll have to wait and see if CiT can maintain these attractive rate levels.

Today’s national average for money market accounts sits at just 0.50% APY on accounts with no minimum balance restrictions and just 0.66 % APY on balances of $25k or greater – making CiT’s offer close to double the national average. Compare all rates here.

Although their primary business operations are based in London, they now have offices here in the United States and can accept Read more...]]> It has only been a few weeks since the UK-based, Barclays Bank, began offering FDIC insured deposits and savings accounts here in the United States (through their Delaware headquarters) however, they now have a full suite of online savings products – many of which are offering fairly exceptional yields.

Although their primary business operations are based in London, they now have offices here in the United States and can accept deposits from American consumers nationwide through their website. Compare Barclays rates vs. other online banks here.

Barclays Bank Online CD Rates (2012):

(Barclays Bank requires no minimum deposit on any of their savings products)

- 6 month CD yielding 0.55% APY.

- 12 month CD yielding 0.90% APY.

- 3 year CD yielding 1.40% APY.

- 5 year CD yielding 1.75% APY.

Their online savings account is featuring the highest APY when compared to the national average. As of May 2012, Barclays online savings account is providing an APY of 1.00%.

As we mentioned in our review of Barclays when they launched their CDs and savings accounts last month, Barclays has a decent assortment of features associated with their accounts. Our personal favorite is remote check deposit. Barclays customers can cash checks on the go via their smart phone (so long as its got a camera and internet connection). Remote deposit is the number 1 most desired feature in mobile banking this year!

Have you opened a Barclays savings or deposit online? If so, let others know what you think by leaving a comment!

For a limited time Leighton State Bank (based out of Leighton, Iowa) is offering customers an incredible 2.50% APY savings account on balances between $5,000 and $25,000.

Related: Compare this offer to the best CD rates available in Iowa from both community banks and credit unions.

To be eligible you’ll also have to Read more...]]> We were just tipped off on a very noteworthy savings account promotion based out of a small community bank in Iowa.

For a limited time Leighton State Bank (based out of Leighton, Iowa) is offering customers an incredible 2.50% APY savings account on balances between $5,000 and $25,000.

Related: Compare this offer to the best CD rates available in Iowa from both community banks and credit unions.

To be eligible you’ll also have to open a checking account with the bank, however, their checking accounts come with no minimum balance requirements and no service charges.

To put this offer in perspective, the best money market accounts and online savings accounts available both online and throughout the country are paying just 1.00% APY, with the national average hovering around 0.55%.

And keep in mind, you’ll need to be able to stop by one of their 2 branches to open this savings account. They have a branch in both Leighton, Iowa as well as Pella, Iowa and are open from 9 – 4 on Monday through Friday and 8:30 – 11:30 on Saturdays. This offer is only available for a limited time.

Thanks to BankVibe.com reader Alex for tipping us off on this 100 year anniversary special from Leighton Bank (leightonbank.com)!

Here’s how it works:

Visit a participating Read more...]]> Below is a solid savings account bonus from US Bank (thanks to BankVibe.com reader Jennifer for tipping us off on the offer!). Currently US Bank is giving away $50 Rewards Visa Cards for those that can stash away $1,000 in the account (as well as meet a few other account requirements). That’s equivalent to a 5% APY – try getting that from a CD rate!

Here’s how it works:

Step 1

Visit a participating branch, call us toll-free at 800-593-6087 or enroll now and choose the U.S. Bank Package that works best for you.

Step 2

Enroll in S.T.A.R.T. and create your savings plan. Set up one or more of the following qualifying transfer options from your Package Checking account to your Package Money Market Savings account:

Transfer an amount you choose on a specific day of the month, OR

Transfer an amount you choose for each U.S. Bank Check Card purchase, OR

Transfer an amount you choose for each U.S. Bank Credit Card purchase.

What you get:

Enjoy rewards from US when you reach one or both S.T.A.R.T. goals:

• When your savings balance reaches $1,000, we’ll recognize your achievement with a $50 U.S. Bank Rewards Visa® Card⁴.
• Maintain a balance of $1,000 or more in your account for one year, and earn another $50 U.S. Bank Rewards Visa Card.

To help accomplish your goals, you will also receive:

• S.T.A.R.T. goal progress and transfer summary information within U.S. Bank Internet Banking
• S.T.A.R.T. details on your monthly account statement
• 24/7 assistance from our bankers

Go the the promotional offer here.

Flexibility with an online savings account is crucial. You’ll want an account with limited restrictions on Read more...]]> In 2011 the best online savings accounts haven’t been able to provide too much on the interest rate front, however, if you happen to be in the market for one of these we’ve compiled a list of the top 5. We put this list together based on account flexibility, customer service, and APY (annual percentage yield).

Flexibility with an online savings account is crucial. You’ll want an account with limited restrictions on withdrawals and easy wiring options to add/subtract funds. You’ll also want a low minimum balance requirement (especially if you don’t plan on stashing too much cash in the account) as well as various online management tools.

We’ve taken customer service into consideration when ranking these accounts because none of the institutions have brick and mortar branches. And even though you’ll likely never need to speak to a representative it’s still nice to know there are actually human beings behind the screen.  There should also be an easy to navigate website with secure and straight forward transfer options.

After reviewing numerous online savings accounts in 2011, we’ve compiled our favorite five based on the criteria we’ve mentioned above. We’ve also used your comments as a basis for this evaluation as well.

Top 5 Online Savings Accounts in 2011:

(Interest rates and APYs are time sensitive in nature, please refer to the date of this article for accuracy. Visit our savings account center for updated rates and information.)

1) Discover Bank High Yield Savings Accounts – Discover offers one of the top online savings accounts on the market in 2011. They have an extremely fast opening process (typically under 24 hours) and one of the best interest rates available. You’ll also encounter intuitive online management software and transfer options. The account features a low opening balance and no minimum deposit requirement.

2) Sallie Mae’s Online Savings Account – Sallie Mae, generally better known for student loans, entered the savings arena last year. Their online savings account features an easy to navigate interface along with no minimum balance requirement. Their interest rates have consistently beaten the national average but are currently lower than Discover’s APY.

3) Ally Bank’s Online Savings Account – The former GMAC re-branded them self after a tumultuous 2008. Ally was named Kiplinger Magazine’s best online savings account in 2009. Their interest rate is generally slightly lower than the top two accounts, however, it features just as flexible of terms and conditions and has 24/7 support available.

4) FNBO Direct’s Online Savings Account – Like Ally Bank, FNBO Direct was rated the best online savings account of 2008. It comes with no fees and no minimum balance requirement and is the online division of the First Bank of Omaha.

5) ING Direct’s Online Savings Account – Often featuring the lowest APY of the bunch, they probably have the most easy to use interface and ATM’s throughout the country (and abroad). They are known for a widely available and responsive customer service department and have a number of online account options available.

Have you opened an online savings account in 2011 that you feel deserves to be on this list. Tell us about it by leaving a comment!

The primary reason for many people to use Swiss banks in the past was to Read more...]]> When you think about Swiss Banks, the first thing that comes to mind is likely Switzerland’s well-known commitment to privacy. The Swiss banks have been getting money from the rich and the filthy-rich since the Middle Ages. These account holders are then known externally only by their account numbers, and only the banks know their true identities.

The primary reason for many people to use Swiss banks in the past was to evade taxes. Others have been known to use it for sheltering their money from being stolen, especially during times of war. Then there are some that simply opened a Swiss bank account because it was convenient when traveling or vacationing in Europe, because they could simply withdraw money with their own Swiss credit or charge cards.

Related: Foreign currency bank CDs may advertise higher interest rates but with greater risk due to lack of FDIC insurance. Some domestic banks will allow Americans to invest in growing economies around the world through bank deposits in foreign banks.

Who are the primary customers?

There are a few types of people that come to mind, such as politicians, celebrities, dictators, socialites, industrialists, financiers, white-collar criminals, and those who just don’t trust traditional banks. Some top criminals were known to have Swiss bank accounts, like Boston crime boss James “Whitey” Bulger, but run-of-the-mill Swiss nationals and legal residents are the main account holders at Swiss banks.

You may think they are exclusive, but in reality, anyone can open an account. You don’t have to have large amounts of money to open one either. At their web site Swiss-Bank-Accounts.com, anyone can open an account with as little as 5,000 francs. Right now, that’s just over $5,000. The American dollar is weaker than the Swiss franc, which has powered through the global crisis and avoided the drastic devaluation that has hurt other currencies.

How do you set up an account?

• Like many domestic banks, you can often apply online. Or you can also apply by “correspondence”, or letter, at the bank of your choice.
• You can transfer money from your bank to the Swiss bank through wire or the Internet, or mail a check or money order.
• Paypal and Western Union can sometimes be used to fund the account, but contact the bank beforehand.
• You may also be able to use a debit card or credit card to fund the account.
• Go to a local branch of the Swiss bank, like Credit Suisse.
• Or take a trip to Switzerland and visit a bank branch.

With these mundane techniques for opening an account, you may be wondering how confidentiality could possibly be maintained for account holders, especially with the electronic and paper trails they leave behind. But clients of these banks tend to be a bit more ingenious with ways to hide their funds, like using wire transfers and doing multiple offshoring, all the while opening and closing accounts until their money has reached the Swiss bank.

Of course, it’s useful to have the help of unscrupulous brokers, bankers and accountants. They help account holders by placing accounts in the name of other offshore companies, preferably with a multi-layered global presence. These corporations can be intentionally ambiguous phantom organizations with store-fronts and web sites that miraculous disappear and reappear with different names.

The USA Today recently reported on a prime example of this kind of illicit money transfer ingenuity. Leon Cohen-Levy and Mauricio Assor, father and son hoteliers, were accused of placing revenue from a sale of one of their hotels into an anonymous HSBC account that was officially held by a Panamanian firm, and the two men didn’t report their sale to the Internal Revenue Service.

The privacy laws behind Swiss banks have brought on a lot of suspicion regarding non-government and government organizations that have their money stored in offshore Swiss accounts. Accusations have been raised that the Swiss banks’ cloak of privacy has protected drug lords, dictator, suspected tax evaders, and terrorists.

Sound like fun?  Think again

America is proactively looking to uncover any American money that has been laundered using Swiss banks. Back in January of 2003, the U.S. Treasury announced that it would be signing an agreement with Switzerland that will involve sharing information for tax purposes. In March 2009, Switzerland agreed to increase their anti-money laundering laws to honor their agreement with the U.S. So now that the 2009 treaty is in effect, account holders of Swiss bank accounts are required to be identified and any transactions that are suspicious must be reported to the Money Laundering Reporting Office.

Criminal charges are also to be filed against 4,000 or so Americans who had an account with UBS. These account holders will be fully audited and will be liable for tax repayments and penalties, unless they are given leniency by the 2009 IRS voluntary disclosure program. This program has since ended, but the Justice Department and IRS are still putting pressure on suspects of UBS and other offshore bank account holders.

With the U.S. deficit mounting, and taxes inevitably on the rise, more and more U.S. citizens are being tempted to open up offshore accounts for their money. Even with all of the risks involved, like imprisonment, large fines, and disclosure threats, some are still risking it anyway. I, on the other hand, prefer just to keep my money close by.

This post comes from the NerdWallet.com team of financial bloggers and experts in helping consumers compare rewards credit cards.

Attention! – The Information Below is Outdated and No Longer Accurate -

Sallie Mae just lowered their online savings account rate last week to 1.10% APY (from 1.25 APY). Of all the online banks offering money market accounts or online savings accounts, Sallie Mae has consistently remained the forerunner for interest rates. Plus, their terms and conditions remain Read more...]]> UPDATE: Sallie Mae now offers an online money market account. Visit updated offer in our latest post covering the best money market accounts online.

Attention! – The Information Below is Outdated and No Longer Accurate -

Sallie Mae just lowered their online savings account rate last week to 1.10% APY (from 1.25 APY). Of all the online banks offering money market accounts or online savings accounts, Sallie Mae has consistently remained the forerunner for interest rates. Plus, their terms and conditions remain fairly lenient as well. They have no minimum balance requirements and no monthly fees.

Top Money Market Rates by Online institutions:

Sallie Mae: 1.10% APY with no fees or minimum balance requirements.

American Express FSB: no fees or minimum balance requirements.

Capital One Bank: no fees and a minimum balance requirement of $1,000.

Features, Terms and Conditions w/ Sallie Mae Online Savings Account:

- 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

Apply Now!