Finding the best online bank has never been easier. Here you’ll find online banks that offer a high interest savings account and high yield savings accounts. We like online banks because they offer competitive interest rates, low fees, and other options, while making banking more convenient than it’s ever been. With all of the internet banks available today, let’s review which ones stand out above the rest. We’ll begin with current rates from some of the leading online banks, and then will provide more details about your best options.
High Interest Online Savings and Money Market Accounts
If you still haven’t found the high interest savings account you’re looking for, here are some more options to consider.
Bank | APY | Min. Deposit | Details |
|---|---|---|---|
 |  |
||
 | |
||
 | |
||
 | |
||
 | |
Online Bank Short Reviews
Discover is more than just credit cards these days and when you compare their savings rates with other online banks, Discover Bank will usually come out on top. They currently offer a pretty sweet 0.80% APY on their online savings account and a very solid 1.75% APY on a 5-year CD. With no minimum requirements for their savings account, Discover Bank makes for a very attractive place to store your cash. Discover Bank also offers a neat twist to your IRA as you can earn 2.10% APY on a 10-year IRA CD return. There’s really no telling if interest rates will pick up anytime soon and 2.10% APY is one of the highest rates you will find for any guaranteed return today.
FNBO Direct, which stands for First National Bank of Omaha, currently offers a competitive 0.85% APY for its online savings account, with a minimum deposit of $500.00 (The balance must also be maintained at $500.00). In addition to it’s online savings account, FNBO Direct also offers a extra rewards credit card where you can redeem the points you earn for cash right back into your savings account. For the first year, you earn double points on all purchases, then the standard 1 point per dollar spent. While FNBO Direct does offer CD’s their rates are significantly lower than what you can find at Ally Bank, so you may want to look elsewhere.
Ally Bank, formerly the bank known as GMAC, transformed it’s image with a new name, new slogan and new purple color. The transformation seems to be working as Kiplinger voted Ally Bank to have the best online savings account in 2009. Funny commercials aside, Ally Bank is a great option for your online banking needs and offers a wide variety of CD’s, including a 9-Month No Penalty CD with a competitive interest rate. As of January 17, 2012, the Ally savings account rate is 0.84% APY and their 11-Month No Penalty CD rate is 0.91% APY but you should check our high yield online savings accounts page, as their rates frequently fluctuate.
American Express Bank offers a new look for consumers who are used to their credit card products. Currently offering a savings account interest rate better than any other bank on this list, AMEX bank is still fairly light in it’s product availability but that is expected to change over the next six to 12 months. American Express Bank was launched in 2010 and is quickly becoming one of the best rated banks amongst consumers for it’s competitive interest rates and quality customer service.
PerkStreet, a new name to the space offers unlimited 2% cash back on debit card purchases – the most rewarding debit card around. As an added bonus, all account holders will receive 5% cash back on select purchases every month, PerkStreet offers more than 40,000 free ATM’s nationwide and a truly fee free online checking account. In order to qualify for the 2% cash back, you must maintain an average daily balance of $5,000 and any purchases made without this requirement will earn you 1% cash back.
EverBank is one of the few online banking institutions that offers users a high interest checking account. When I say high interest, I mean up to a 0.76% APY return every year. EverBank offers customers an interest rate of 0.76% APY, which is still one of the highest offered by an online bank today. In addition to their high yield checking account, EverBank also offers a Money Market account and a variety of CD’s. EverBank requires a minimum deposit of $1,500, and if you carry at least a $5,000 balance, EverBank will reimburse your ATM fees, if you acquire them.
E*Trade offers an online savings account, checking account and plenty of CD options even if you are not using them as a stock or options broker. The APY’s leave much to be desired as the current checking account APY is 0.15% for balances of 5K+ and their online savings account rate is a low 0.30% but the main advantage of opening and online banking account with E*Trade is the convenience you will have if you choose to use them as a broker. Transferring funds to and from your broker account using your E*Trade savings or checking account is a cinch and can save you a few days in transfer time as well. However, if you’re not planning to use your E*Trade savings account for investing purposes, you can certainly find better interest rates elsewhere.
All institutions listed above are FDIC insured so your money will always be safe. No need to worry!
Rob Berger
Latest posts by Rob Berger (see all)
- 6 Banking Options for College Students - May 21, 2013
- Sunday Morning Roundup: Berkshire Hathaway Shareholder Meeting - May 12, 2013
- KAIKU Visa Prepaid Card Review - May 11, 2013
Published or updated May 21, 2013.
{ 34 comments… read them below or add one }
I enjoy reading your blogposts! Just a quick comment; 12% of $1000 is $120. So, a $1000 gift card would turn into $1120.
I think that they said $1120.00!
I am sure that is annually and you would have to let your gift card set unused for a year to get the $120.00
Thanks John. Good find on my math mistake; I’ve got a friend indebted to you for life now that he knows I’m human!
ING Direct just dropped their APY to 1.20. WHAMP WHAMP
Capital One is now 1.45%, $2500 min, 10% bonus paid quarterly.
(down from 1.76 in article)
Discover 1.35% (down from 1.60 in article)
THUD THUD
My brother has used the services of online banks and to date has not encountered any problems. I didn’t know the list was so extensive and offered by many top known creditors. I will definitely review the list and make a decision about a choice. Thanks for the information.
Online savings accounts do make things easy, however, if you’re after a decent interest rate you may want to look into “rewards checking accounts.” They have monthly requirements which you need to meet each month, but if you are able to do so you will receive much higher interest rates. You could easily find 3% – 5% APY in today’s current market (compare this to the sub 2% APY online savings accounts are providing).
I have one of these and get 4.01% on the first $25000.00 and 1.07% after that. Have to do 10 debit card purchases a month, use e-statements, and look at my account on-line one time a month. Great deal!
There are many banks using this custom program to gain ground in their market. The “Rewards” programs are being turned into products and will be available to more banks.
Great informative Moneywise page for Dummies Site! Keep up the great work!
I have two separate questions. How is the Mango Card Savings account different from these Online Banks? Second, would such debit card savings accounts be less conspicuous or “safer” from being garnisheed by debtors and lawyers than regular online/corner banks?
Max in NYC
Great article but you need to learn the difference between “its” and “it’s”:
“It’s” should only be used when you are substituting for “it is” as “It’s raining.”
“Its” is possessive– as in “Zions bank provides its customers…” Of course you could solve this by using plural and go with “their” customers.
Sorry…English professor…it’s a gift and a curse.
Get a freaking life stupid woman! Good grief.
Don’t criticize the woman for making a valid point–the accusation of “stupid” is completely misplaced. If a doctor was doing something incorrectly you would want them to do their job right. Allowing people to be sloppy in one place gives them permission to be sloppy in others. This is basic English–don’t be an enabler.
Hope “Corgi Mom” wasn’t the one checking her Corgi Kids’ homework. Sloppy grammar and inappropriate word us, especially in the media, has a lasting impact on the erosion of our language and literacy. It’s always worthwhile to gently correct errors that, somehow, slip by even in the age of computerized spellcheckers and grammar checkers. And, by the way, Corgi Mom, you should have put a comma before “stupid woman” as it’s a direct address, stupid woman. (And you’re out there procreating? I shudder.)
@TexasGal–I value your educational achievement and efforts to remind the author and its readers on the proper use of “it” and “it’s.” I appreciate your “on-the-spot” correction. Not all grown-ups takes to someone correcting them. As I get older, I am reminded if I do not use proper grammar and mechanics, it will get lost. So again, thanks for the reminder.
It’s good to be reminded about correct grammar. And, saving for retirement brings its own rewards. Thank you, Texas Gal!
I loved the article as I have been looking for a higher savings account, since my bank or any local bank here, does not offer a percentage rate worth depostng into. I have been curious if anyone was using these online banking accounts. My CD at my local bank doesn’t earn enough to satisfy me, so I’ll be looking into these online accounts. Keep these articles coming, as everyone especially those who are still in the working force, needs to be savings for their retirement. I know first hand on this.
I still like to do business with people/businesses I know. I do not like to do business with banks/credit companies/ or loan companies that are or have been using federal funds(bail outs). For 1/2% to 1 % difference, no thanks, I will do business with people or organizations that I know.
Saving is the best way to gain a huge fortune.
Saving? Well, I sure hope then you are buying gold and silver, and not putting it your wealth in a so-called ‘savings’ account where you are get 1 or 2% interest rates. Real inflation (not the hedonically-adjusted BS that the Fed spews out – i.e leaving out petrol, food, and rent, etc) in the US is well over 5% now, and I would argue is really in the 7 to 9% range. So is you are holding dollars in a savings account, you are getting CRUSHED.
Gold has increased by double digits as a percentage gained for the last 10 years in a row. Can you say the same of the NASDAQ? The Dow? The S&P? The US dollar? US Treasuries? The average US IRA? LOL! How about your paycheck? How about the value of the average American house? Not so funny, now, eh?
I have been long gold AND silver since 1998 and 1999 (in physically-held, allocated non-bank secure vault accounts), when the US trashed the Glass–Steagall Act and legalized derivatives under the Clinton/Rubin/Greenspan troika. I have an average gain of over well over 300%, whilst the Dow is utterly stagnant from the tech bubble crash of early 2001 till now. In fact, it is off greatly, due to inflation, and many were crushed in the stock crash of 2008-2009, and pulled out, locking in huge losses that they could have somewhat recovered in the QE 1 and QE 2 fueled bubble that is now unraveling. Check back with me in 3 or 4 years when those 300% figures are closing in on 1000% profits.
In 1970, the average US car cost $3900 and it took 114 ounces of gold to buy. In 2011, that same car is around $29,000 yet takes less than 19 ounces of gold to buy. Hello dollar debasement!
Best of luck to all on here
I disagree with this statement. Sure saving is a great way of gaining fortune (20-30 years down the road), but to gain a huge fortune, you need to do more than just save. You need to invest or own a business, as these will allow your money to work for you. This article is about ‘investing’ in an account that will earn you more than your regular ‘savings account’ at your local bank. You know how much the average savings account is paying right now? 0.10%! Give me a break! This will never enable you to ‘gain a huge fortune’ Saving in the ‘right’ accounts will definitely help. Discover Bank has been one of our favorites over the past few years.
USAA is a good online bank, but is only open to active and former military members. They are best in class for service and offer great rates for loans.
Hi DR or anyone else who might have some input,
I am a recent graduate and I currently live in Beijing, China and work here. I want to open an online savings account but I’m not sure which one would be best for living abroad. My company can transfer part of my salary into an American account but are there any international online savings accounts? Any advice would be great appreciated! Thanks!
We really cherish this website. Wewish we could come here everydayall day.
It’s not for everyone but Wells Fargo / Wachovia has a Way2Save account that while having low limits on deposits (It automatically transfers $1 from your checking into this account every time you use your debit card and you can deposit up to a $100 a month above that ) it currently pays 2%. It is surprising how fast that can add up. It is a very painless way for people to save even while they spend. Your paying yourself a $1 on every transaction and the the rate floats with prime I believe.
I am a recent graduate and I currently live in Beijing, China and work here. I want to open an online savings account but I’m not sure which one would be best for living abroad. My company can transfer
bank here, does not offer a percentage rate worth depostng into. I have been curious if anyone was using these online banking accounts. My CD at my local bank doesn’t earn enough to satisfy me, so I’ll be
It’s not for everyone but Wells Fargo / Wachovia has a Way2Save account that while having low limits on deposits (It automatically transfers $1 from your checking into this account every time you use your debit card and you can deposit up to a $100 a month above that ) it currently pays 2%. It is surprising how fast that can add up. It is a very painless way for people to save even while they spend. Your paying yourself a $1 on every transaction and the the rate floats with prime I believe.
I just wanted to make a simple word in order to say thanks to you for some of the nice instructions you are writing at this site. My particularly long internet lookup has at the end of the day been honored with pleasant suggestions to go over with my best friends. I ‘d declare that many of us visitors are extremely endowed to be in a really good site with very many lovely professionals with valuable tricks. I feel very happy to have come across your site and look forward to some more entertaining moments reading here. Thanks a lot once more for everything.
I am a recent graduate and I currently live in Beijing, China and work here. I want to open an online savings account but I’m not sure which one would be best for living abroad. My company can transfer part of my salary into an American account but are there any international online savings accounts? Any advice would be great appreciated! Thanks!
when people invest there money into online banks is there any chance that the their money could not be insured like the banks say they are?
Capital One InterestPlus Online Savings Account is 0.85%APY and comes with a $50 cash bonus. For sure, deposits are insured though banking is done online.
I love american express. It’s the best service for me.