Online savings accounts are a great place to stash your cash. Also called high yield savings accounts, you earn some of the highest available interest rates for a savings account, and you get the convenience of online account management and easy transfers to and from your existing bank accounts. Recently, a reader e-mailed me asking where to find the best online cash accounts. So here is my list of some of the top paying online savings account offers.
| Financial Institution | Rate (APY) | Minimum Deposit | Reviews |
|---|---|---|---|
| Everbank | 2.25% | $1,500 | Everbank Review |
| SmartyPig | 2.01% | $1 | SmartyPig Review |
| Ally Bank (GMAC Bank) | 1.49% | $1 | Ally Bank Review |
| WT Direct | 1.41% | $10,000 | WT Direct Review |
| HSBC Direct | 1.35% | $1 | HSBC Direct Review |
| E*Trade Financial | 0.95% | $1 | |
| Discover Bank | 1.75% | $0 | Discover Bank Review |
Alternative to High Yield Accounts
If you are looking for higher returns, LendingClub may be the answer. LendingClub is a social lending site where you can invest in loans issued to individuals and businesses. The current average return is above 9%, and some loans carry interest rates as high as 20%. While these investments are not FDIC insured, given the low interest rates paid by banks, LendingClub may be a great alternative. Visit www.lendingclub.com for more information.
Online Savings Account Details
Because of their convenience, security and favorable interest rates, internet savings accounts are perfect for emergency funds or other short term savings. They can also be used in conjunction with 0% balance transfer credit cards to make money during the 0% introductory rate. Interest rates on these savings accounts do change, and here are some of the highest yield account offers to make the most of your money.
Ally Bank: Ally, formerly GMAC Bank, offers one of the highest available interest rates on a savings account. It requires no minimum deposit to open an account, and there are no monthly fees. It is one of our editor's picks. You can get more details about the savings account and apply online by clicking here.
Discover Bank: Discover Bank has just launched an online savings account offering one of the highest yields available. As with Ally Bank, Discover Bank has no minimum deposit requirement and charges no monthly account maintenance fees.
WT Direct: WT Direct has in the past been known for offering top rates for accounts with $10,000 or more on deposit. Recently, however, its rates have fallen slightly behind other high yield savings account options, including those that do not require a minimum balance to receive the best rates. Still, WT Direct ranks among those institutions offering very competitive rates. Note that there is no minimum deposit required to open an account. Even $1 will do the trick. But you do need $10,000 on deposit to qualify for the higher interest rate. There are no fees, no minimums, and deposits are FDIC insured. You can sign up for a WT Direct online savings account by clicking here.
HSBC Direct: HSBC's online savings account offers competitive rates with no monthly fees or minimum balance requirements, and you can open an account with as little as $1. And your money is FDIC insured to the maximum permitted by law. HSBC is a great option, and you can open an account online by clicking here.
E*Trade Financial: When you think of E*Trade, you probably think of the online discount broker. But E*Trade also offers an online high yield savings account, too. As with the other options, there are no account fees or minimum balance requirements.
I will do my best to update this page as interest rates and features change, but you should always confirm the terms and conditions of the online savings account before applying.
{ 1 trackback }
{ 16 comments… read them below or add one }
So 3.75% is the best deal online right now?.. I’m fairly certain that even Treasury bonds can provide a higher return than that.
@ GL… Yeah, but are treasury bonds as liquid as savings accounts?
GL, there is also more risk with Treasury bonds. Depending on when you need to cash out, if interest rates have risen, you may be forced to sell at a loss.
How about SmartyPig?
They offer 3.4% right now and it’s a great way to force yourself to save money by setting goals. Save now, buy later!!
Merna, it’s funny you mention SmartyPig. I just ran across an article in Fast Company magazine about SmartyPig, and I’m preparing a follow up article on the site.
Other than government bonds, the new Tax free Saving Account being introduced in Canada is also going to be a very good option for investors.
MiningOilGasGuru
It would be interesting to find out a comparison between the yields of the savings accounts now versus a year or two ago. I seem to remember that ING and others were at 4.5-5% in 2006, but I could be mistaken.
What can be the next best thing to stuff that is not fdic insured. What do you think about ag financial savings account Mr. Roller?
Actually, the AG financial savings account pays a good interest rate and promotes a good cause, too!
Hi – great list of online savings accounts – but there are more! I work with ShoreBank that has a competitive online savings account at 3.5% interest. Some more details: $1 minimum, no monthly fees, online and phone customer service. If you are interested in promoting good causes – ShoreBank is a great option. ShoreBank has a bottom line mission to invest in socially and environmentally (and sometimes both at once) responsible projects and businesses – so a good rate, a great cause.
It is in the forums section.
here is the link… http://feedingwealth.com/Home/Default.aspx?tabid=72&forumid=3&threadid=4&scope=posts
They talk about the most recent high-yield savings accounts and also gives an opinion about each one on Feeding Wealth.
How about American Express Personal Savings account? Like Discover, they recently started offering a savings account with a 2% APY. Any opinion on this one?
The TOP High Yield Online saving bank is and has been over a year is South Shore bank. Until very recently offrerd 2.1 % rate and just now dropped to 1.90% !
Why is this bank NOT reported is a mystery to me……
I do have an account there for last six months and surprised no one comes close to this bank!!
Bruce, thanks for the tip! 3.80% today is really good rate.
Chris, thanks for the tip. I’m not familiar with Venture, but will definitely check it out.