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.
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 APY on their online savings account and a very solid rate 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.
FNBO Direct, which stands for First National Bank of Omaha, currently offers a competitive 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 its 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 its 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.
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 a very competitive rate as noted above, 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 very low for balances of 5K+ and their online savings account rate is low, 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!