Online Savings Accounts
Opening an online savings account is an excellent way to earn some extra money on your cash balances rather than simply stashing it away in a standard low interest checking/savings account. Most of these savings accounts are specifically designed to supplement your existing checking or savings accounts as well. If you don’t need the money immediately you can transfer it into one of the high interest online savings accounts below. When you do need it you can transfer it back without penalty or, in most cases, you may pay your bills directly from these accounts (since most online savings accounts don’t require any minimum balance). Below are the top 5 online savings accounts (with a bank rank of 1-5). The rank is determined by account flexibility, APY, and customer service.
Online Savings Account Rates
| Bank Rank | Name of Bank | Investment Type | APY% | Duration | Compounded: | Min. Deposit |
|---|---|---|---|---|---|---|
| 1 | Smarty Pig | Online Savings Account | 2.75% | na | Daily | $0 |
| 2 | Darby Direct | Online Savings Account | 2.20% | na | Daily | $0 |
| 3 | Discover Bank | Online Savings Account | 2.00% | na | Daily | $100 |
| 4 | Ally Bank |
Online Savings Account | 1.70% | na | Daily | $0 |
| 5 | WTDirect | Online Savings Account | 1.76% | na | Daily | $10,000 |
| 6 | HSBC Direct | Online Savings Account | 1.65% | 12 month | Daily | $1 |
| E-TRADE Bank | Online Savings Account | 1.20% | na | Daily | $1 |
Best Online Savings Accounts
Finding the online savings account with the highest interest rate is a time-sensitive process. The savings rate in which you will earn from these institutions is constantly changing. One week WTDirect may yield the highest interest rate while the next week it may yield the lowest. These savings accounts tend to not only mirror the trend of the economy as a whole, but also tend to follow eachthers’ trends. If you have been following the rates of online savings accounts for a few weeks, you will have most likely noticed this pattern.
Online Savings Accounts - Rates and Features:
ING Direct: 2.20% APY While it doesn’t have the most competitive interest rates, it is still a very popular option. The primary benefits of the “Orange Savings Account” is that it comes with no fees and no minimums, and an easy-to-use web interface. It’s also easy to create sub-accounts for different savings goals, and they have a high interest checking option.
WTDirect: 2.51% APY is one of the newest members of the online savings account community. While they offer highly competitive rates and no fees, they have a relatively high minimum deposit requirement of $10,000. It’s not for everyone, but their rate has been amongst the very best in the past, so they might be worth checking out if are looking to invest that type of cash.
HSBC Direct: 2.45% APY features no fees and only a $1 minimum. HSBC Direct has been very popular in the past and frequently boasted the highest rates. However, their rates have been less competitive of late and have fallen out of favor. Still a solid online savings option as far as flexibility and usability are concerned.
E-TRADE Bank: 2.50% APY is one of the favorites for online savings consumers. It has an extremely easy-to-use web interface, typically offers very competitive rates, and is very flexible. Their customer service department is also fairly responsive and timely with any concerns customers may have.
FNBO Direct: 2.60% APY Again, this one is a favorite to a lot of online savers. FNBO Direct features no fees and no minimums (though they require a $1 deposit to open the account). Readers liked it for it’s consistently high interest rate, the availability of an ATM card, and because you can easily reach an actual person when you call customer service.
Dollar Savings Direct: 3.20% APY is the newest online savings account offer through Emigrant Bank. So far they have offered a very competitive rate and only have a minimum balance of $1,000. They also have no fees and have a reasonably easy to use web-interface. The only negative with this bank is that their rating sits pretty low, however, your money is still FDIC insured.
