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.
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!
Published or updated May 21, 2013.