Editor's note - You can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. Opinions are the author's alone. This content has not been provided by, reviewed, approved or endorsed by any advertiser, unless otherwise noted below.

With more online banks available now than ever before, finding the best online bank has never been easier. In this article, we’ll explain how online banks work, whether or not they are safe, and compare how they differ from traditional banks. We’ll also explore some of the advantages and disadvantages of using online banks as well as provide information about some of their current offers and rates.

Deal of the Day: Chase is now offering a $225 cash bonus when opening a Total Checking® Account. No minimum deposit and all deposits are FDIC insured up to the $250,000 per depositor maximum.

Advertising DisclosureThe savings offers that appear on this site are from companies from which DoughRoller receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). DoughRoller does not include all savings companies or all savings offers available in the marketplace.

Best Online Banks — Short Reviews

Let’s start by looking at some of the best online banks of 2021.

Online Bank
Savings APYApply Here
0.50%Learn More
Citi Accelerate Savings
0.50%Learn More
0.45% APY ($100 minimum deposit required)Learn More
American Express National Bank Member FDIC
0.40%Learn More
HSBC Direct
0.15%Learn More
LendingClub Rewards Checking
0.25% APY on balances of more than $25,000; 0.15% APY on balances of $2,500 - $24,999.99; 0.05% APY on balances of $10 - $2,499.99 on High-yield Savings.Learn More
Discover Bank
0.40%Learn More
Barclays Bank
0.40%Learn More
FNBO Direct
Learn More

We like online banks because they offer competitive interest rates, low fees, and other options, all while making banking more convenient than it’s ever been. There are a number of different banks to choose from. I personally have accounts at Ally and Capital One 360, and also have an account at American Express National Bank – Member FDIC.

Based on my personal experience along with substantial research, here are some of the top online banks we feel stand out above the rest:


Editor’s Pick–Best Overall

Chime – Chime is an online-only financial app that offers you several unique features. When you sign up, you’ll have access to a “spending account” (which is essentially your checking), a savings account, and a debit card. Regarding the unique features, Chime offers something called SpotMe – which “spots you” money if you overdraw your checking account for any reason.

In addition, you can leverage Chime’s saving round-ups, where Chime will round up your purchases to the next dollar amount and deposit the difference into your savings account. You’ll also get access to a paper checkbook, a 0.50% APY, and close to 40,000 fee-free ATMs nationwide. Check out our complete review of Chime for more information.

Chime Disclosure - Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
Learn More at Chime


Citi – Citi currently offers the highest APY of any savings account online that does not require a minimum deposit to earn interest.  The accelerate Savings account currently yields a 0.50% APY and if you’re in need of bonus cash, you’ll want to consider a Citi Priority Checking account which offers a $700 cash bonus for meeting certain requirements.

Current Rates

  • Citi Accelerate Savings: 0.50% APY
  • Citi Priority Checking Account – $700 bonus

CIT Bank

CIT Bank – As interest rates slowly start to rise, CIT Bank is vying for the top spot. It currently offers one of the highest APYs available in their Savings Builder Account.  CIT also offers great rates on their MMA and 12-month CD products

Current Rates

American Express Bank

AMEX Personal SavingsAmerican Express® High Yield Savings Account – I’ve been banking with American Express for the last few years and can vouch for their quality.  Currently, the American Express® High Yield Savings Account offers two primary products; CD’s and Savings.  The allure of their CD offerings kicks in at the 18-month mark and both online savings and CD accounts require no minimum deposit.  Rates current as of 03.11.2021.

Current Rates

Learn More at American Express

HSBC Direct

HSBC Direct SavingsHSBC Direct Savings – You’d be hard pressed to find a better rate than the one HSBC Direct is currently offering in their Savings Account.  A 0.15% APY is being offered across all balances and there are no monthly maintenance fees to worry about.

There is also no minimum deposit required to open an account.

Current Rates

Learn More at HSBC Direct


LendingClub Bank

LendingClub BankLendingClub Rewards Checking offers low minimum deposits and no minimum balance requirements. Plus, they offer unlimited cash back of 1% on signature-based purchases with your LendingClub Bank debit card. They also offer unlimited rebates for ATM fees charged by other banks. But, their APYs aren’t as competitive as some of the other online banks.

Current Rates

  • Rewards Checking: 0.15% APY on balances of $100,000 and up or 0.10% APY on balances of $2,500 – $99,999.99
  • High-Yield Savings: 0.25% APY on balances of more than $25,000; 0.15% APY on balances of $2,500 – $24,999.99; 0.05% APY on balances of $10 – $2,499.99
Learn More at LendingClub Bank

First National Bank of Omaha

FNBO Direct – First National Bank of Omaha currently offers a competitive APY for its online savings account, with a minimum deposit of just $1. Even more impressive, it offers an interest bearing checking account that currently pays APY.

Current Rates

  • FNBO Online Savings: 1.00% APY
  • FNBO Checking: APY

Discover Bank

Discover Bank – Discover is more than just credit cards. Through Discover Bank, customers can find great rates on nearly any type of account they want – including  savings, money market, CDs, and IRAs.

Current Rates


Barclays  – UK banking giant Barclays offers clients in the U.S. access to online savings accounts and CDs. Online savings accounts through Barclays feature no minimum balances to open and no monthly maintenance fees.

Current Rates

Read more: Barclays Bank Review

Bonus: Online Banks for Small Business

Online banks aren’t just for consumers. Businesses need their own bank accounts too. This is especially true for small businesses, where the owner can be tempted to let their personal and business funds mix.

Maintaining a separate business account is important for bookkeeping, as well as maintaining business protections like the limited liability offered by an LLC.

These are some of the best online banks for small businesses.

Bank Novo

Bank Novo – Novo is an online bank designed specifically for small businesses and freelancers. Novo has a minimum opening deposit of just $50, which means almost any small business can open an account. There are no monthly maintenance fees or minimum balances to meet once you open the account. Novo also offers powerful online banking features, such as integrating with digital wallets, easy international transfers, and mobile deposits.

Novo customers also get valuable perks such as discounts or credits for popular services including Stripe, Google Cloud, and Salesforce.

Where Novo falls short is in offering options for businesses that do much of their business using cash or checks. Because Novo is an online bank, you don’t have any way to deposit cash. You also don’t get a checkbook from Novo that you can use to pay vendors, forcing you to use electronic transfers to pay people.

If you do most of your work online, this won’t be a problem, but if your small business is something like a coin-operated laundry, Novo probably isn’t the right choice for you. You can read our full review of Bank Novo here.

Learn More at Bank Novo


Lili is a mobile bank designed specifically for freelancers. It’s a great choice for anyone who is freelancing, whether you’re just getting your business off the ground or you’ve been freelancing for years.

Lili’s checking account is nearly fee-free, with no monthly fees or overdraft fees to worry about. You can also easily withdraw cash, fee-free, at more than 32,000 ATMs across the United States.

When it comes to helping freelancers in particular, Lili offers a few useful tools. One is the option to set money aside each time you get paid by a customer. This makes it easier to be prepared for tax season, because you don’t have an employer who sends a portion of each paycheck to the IRS.

Lili can also automatically categorize your expenses, which can help you maximize your business expense deductions when tax time comes. That can help you pay less money to the IRS and keep more in your pocket to help grow your freelancing business.

You can learn more by reading our full Lili review.

Learn More at Lili

Learn More:  Best Business Checking Accounts

Compare: Azlo vs. Novo vs. BlueVine

What is an Online Bank?

It may seem odd to speak of online banks as different than traditional banks. Don’t all banks offer online banking?

An online bank is a financial institution that does not have physical bank branches. All banking is done online. The advantages is that without the cost of physical locations, online banks offer higher interest rates on savings products and lower fees. And consumers have taken notice.

Although many consumers still love the idea of doing business with a traditional bank, the fact is that consumers are flocking in huge numbers to online banking options. According to the Federal Reserve’s “Consumers and Mobile Financial Services 2015” report, 74% of banking customers reported using some type of online banking application to access their bank accounts in 2014.

That number is up from 65% in 2011. Even more striking is that 35% of banking customers used mobile banking apps in 2014, up from just 20% in 2011. Clearly, the online banking trend is moving upward.

So what makes online banking so attractive to banking consumers? Online banking is extremely convenient, for one. Customers of online banks are able to access their information from anywhere with an internet connection. That makes doing all, or even some, of your banking online very convenient. Even traditional banks now include an online banking component for most of their customers.

Unlike their traditional counterparts, online banks do not have physical brick-and-mortar locations. Obviously, this presents both advantages and disadvantages for online banking customers. Because banks don’t have the high overhead costs of maintaining or staffing physical locations, they are able to pass those savings along to their customers in the form of higher yielding products.

Additionally, online banks typically are able to charge lower fees for the same reasons. However, customers who bank mostly in cash may find not having a branch location to be more trouble than it is worth. Customers who crave a personal face-to-face experience will also be disappointed.

Just as most traditional banks have the backing of the FDIC, online banks fall under their protection as well. Furthermore, many online banks offer the same banking products that you can find at traditional banks. Most online banks include checking, savings, CDs, and money market accounts. However, online debt focused products – such as mortgages and personal loans – are rare. Although some online banks do offer IRA accounts, many do not offer any type of investing products or services.

How Online Banks Work

Due to the nature of how they work, online banks are geared toward satisfying the needs of more mobile and tech savvy customers. Because online banks do not have physical branch locations, consumers need to make some adjustments in how they interact with their new bank.


If you already have your paycheck directly deposited into your bank account, you’ll notice little difference in depositing your monthly income. With direct deposit, online banks work the same way as traditional financial firms. However, if you receive a paper check, you’ll need to find a different way to make your deposits.

An online bank typically enables deposits in the following ways:

Mobile Deposits: Most online banks today enable customers to deposit paper checks via smartphones. The feature is as simple as snapping a picture of the front and back of the check.

Electronic Transfers: You can connect an existing bank account with an online bank. This makes it easy to transfer funds to your primary bank account. That’s what we do. We transfer funds to our online banks to take advantage of the higher yields. When we need to use the money, we then transfer it back to you brick and mortar institution.

U.S. Mail: In addition to direct deposits, customers can also mail in their paper checks. Doing so means that your check will not clear and be credited to your account for at least a few days.

Related: Banks That Offer Early Direct Deposit


Online banking customers can get access to their money in a number of different ways.

Debit Card: The easiest way to make a purchase is to use the debit card provided by your new bank. Typically, these cards will have a daily purchase limit that protects your account from unauthorized purchases.

Paper Checks: Online banks may also provide customers with access to paper checks and online bill payment systems. Customers may also transfer funds to a traditional bank, which can then be accessed at that bank’s physical location within a few days. This can typically be done without incurring any fees.

ATMs: Most online banks have agreements with ATM services that allow their customers access to cash from these machines without paying a fee. Again, ATMs may be subject to a daily withdrawal limit.

Electronic Transfers: As mentioned above, this is how we access are funds in most cases. We simply transfer the money to our primary checking account.

Is Online Banking Safe?

If you are new to online banking, you might be wondering if online banking is as safe as banking through a traditional bank. Although the act of physically handing your money to a teller may seem safer, the fact is that many traditional and online banks operate in a similar fashion.

Most online banks use the same type of security systems used in traditional banking. Furthermore, both traditional and online banks store your information on servers and databases that could potentially be vulnerable to cyber criminals. So, the perception of safety is not always the reality.

Before doing business with an online bank, make sure that they are a legitimate institution. Of course, we recommend using online banks that are insured by the FDIC. That way, your money is getting the same type of protection that it would get if you deposited it with a traditional bank (up to $250,000 in coverage).

Whether you choose to bank online or with a traditional bank, the safety of your account is really up to you. Monitor your accounts and look for any irregularities on a regular basis. With online banking, in particular, make sure that you are secure private internet connections, rather than public wireless connections where your information may be visible to other users. Most of all, be vigilant about your online banking relationship. If you see something that doesn’t look right, take action immediately.

For more information about how you can keep your accounts safe, visit the FDICs tips for “Safe Internet Banking.”

Read More: 

Advantages of Online Banks

Due to the nature of online banking, there are some distinct advantages that online banks can offer over traditional banks. Here are a few:

High Rates

Because online banks typically don’t have the same overhead costs of traditional banks, they are able to pass the savings on to their customers in the form of higher rates. Many banks are able to offer savings account and CD rates that are 0.5% higher (or more) than their traditional counterparts. Depending on the size of your balance, that can mean a lot of interest being put back into your pocket.

Low Fees

Again, because they have much smaller overhead expenses to deal with, online banks are typically able to offer lower fees than traditional banks. At most online banks, many of their account types offer zero fees.

Easy of Use

Since their entire business structure is based online, it makes sense that online banks would provide their customers with easy to use platforms. Additionally, most online banks now have mobile apps to help meet their customers banking needs even while they are on the go.

Read More: Best Mobile Banking Apps

Disadvantages of Online Banks

Of course, making the switch to online banking presents some challenges as well. Here are a few disadvantages of online banks:

No Branch Locations

Although online banks are able to keep their overhead low due to the lack of physical branch locations, it does present some issues. For online banking customers, this means that face-to-face meetings with tellers and bankers are nonexistent. Customers desiring personal interaction will not find it in an online bank.

Difficulties with Cash

Another result of not having physical branches is that online banking makes it difficult to deposit and withdraw cash. Cash deposits are not allowed, and withdrawing cash must be done at an ATM machine. While online banks have agreements with ATM companies that eliminate processing fees, cash withdrawals are subject to daily limits.

Limited Product Offerings

Most online banks are able to offer the basic accounts that customers seek – checking, savings, and money market accounts. However, few online banks provide other products – especially debt products – that can be obtained from a traditional bank. Customers typically are unable to obtain home loans, personal loans, or brokerage accounts from an online bank.

No Safety Deposit Boxes

If you are somebody who uses a safety deposit box, you’re obviously out of luck finding those with an online bank. Since there are no physical locations, online banks are clearly not able to provide this service.

How to Open an Online Bank Account

Opening an account at an online bank is pretty straightforward. Just visit the website of the online bank of your choice. Click on “Open Account” (or something similar). Choose the type of account you wish to open, and fill out the required personal information. You can then fund your through an online funds transfer, mailing a check, submitting an eCheck, or completing a wire transfer.

Related: How to Avoid Wire Transfer Fees

If you do not wish to open your account through the online process (and why wouldn’t you since you’re switching to online banking?), many online banks allow you to open your new account by telephone. Some also allow you to complete and mail paper forms to open your account.

Related: How Many Bank Accounts Should You Have?

List of Online Banks

Here is a list of additional online banks. Please note that, due to federal regulations, all savings and money market accounts are limited to 6 transactions per calendar month on certain types of transactions (wire transfers, phone transfers, etc.). Deposits and ATM withdrawals are not included in this number. Unless otherwise noted, there are no deposit or ATM withdrawal fees at participating machines.

Capital One 360 – Capital One 360 offers multiple online accounts, including checking, savings, CDs, business savings, and children’s accounts. Brokerage accounts, IRAs, and mortgages are also available. Checking and savings accounts include no minimum balance requirements and no monthly fees.

Bank5 Connect – Bank5 Connect is an online bank offering checking and savings accounts as well as CDs. They also offer person-to-person payments. Checking and savings accounts require a minimum balance of $10 to open and $100 to earn interest. There are no monthly maintenance fees.

Sallie Mae Bank – Student loan giant Sallie Mae has also gotten into the online banking game. Currently, they offer savings and money market accounts, CDs, and Upromise GoalSaver college fund accounts. Savings and money market accounts offer no minimum balance requirements or monthly maintenance fees.

First Internet Bank – First Internet Bank is a full-service online bank offering personal and business banking accounts, mortgages, CDs, IRAs, commercial loans, and more. They offer both free and interest earning checking accounts, with a minimum opening deposit of $25 and $100, respectively. Interest checking accounts charge a monthly maintenance fee of $10 a month for average daily balances below $500. Free and interest-bearing savings accounts are also available, with minimum opening deposits also sitting at $25 and $100, respectively. A monthly maintenance fee of $2 will be assessed to regular savings accounts with an average daily balance of less than $1,000. Money Market accounts require a $100 deposit to open and an average daily balance of $4,000 to avoid the $5 monthly fee.

Simple Bank – Simple Bank offers an online bank account similar to a checking account. You can pay your bills through their system and use your Visa debit card to make purchases. Their “Safe to Spend” feature helps you keep track of both your current balance and future financial commitments (like monthly bill payments). Your funds are held through Simple Bank’s partner bank (Bankcorp Bank). Unlike most online banks, Simple Bank does not offer high-yield checking or savings rates. Thus, their current rates are nominal. So, if you are looking for high-yielding bank accounts, Simple Bank is not your best option. However, if you’re looking for an online bank with a great mobile app, online bill pay, and tools to help you budget, Simple Bank is a good option.

Nationwide Bank – Nationwide Bank is a full-service online bank offering personal and business accounts, as well as CDs, mortgage and home equity loans, car loans, IRAs, and a variety of other banking products. They offer 3 types of personal checking accounts, all requiring a minimum of $50 to open. Two of these accounts are interest bearing, and all of them have small monthly maintenance fees that can be waived by meeting varying direct deposit or minimum balance requirements. Regular Savings accounts also require a $50 minimum opening deposit and are charged a $3 monthly fee for minimum daily balances below $300. Money Market accounts are subject to a monthly maintenance fee of $8 for minimum daily balances below $1,000. Nationwide also offers a special “Holiday Club” savings account, helping you plan and save for holiday shopping throughout the year. The account is free, and you’ll receive a transfer to your Nationwide checking or savings account in October of each year.

TIAA Direct Bank – TIAA Direct Bank offers checking, savings, and money market accounts as well as CDs. Borrowers can also apply for mortgages and home equity loans through this online bank. On all accounts, there are no minimum balance requirements or monthly maintenance fees. Checking and savings accounts require a $100 deposit to open, while money market accounts may be opened with a deposit of at least $2,500.


The Bottom Line

Online banks can provide customers with high-yielding accounts and CDs that traditional banks may not be able to offer. Since there are both advantages and disadvantages to banking online, be sure to weigh the pros and cons before you make a complete switch.

Related: Best Bank Referral Programs

The beauty of online banking is that you don’t have to switch entirely. You may consider keeping some accounts with a traditional bank while moving some of your money to an online bank in order to take advantage of the great rates. As always, do your research and think carefully before making any major financial decision.

Listen to our show about online banks vs traditional banks

Author Bio

Total Articles: 1074
Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

Article comments

joanofark06 says:

I was shocked at some of these comments, till I saw that they were from WAY back in time…2011, and it’s 2020 now. When I saw that year, I was like “Why am I reading these”??

joanofark06 says:

It was said in the article, that Barclay’s had a 2.10% rate, for the 1 year, but it’s not. It’s actually 2.00%. This article was wrote on Feb 6, so it should be corrected. I had to go to Barclays to see if that was true, because I would of signed up for that 1yr CD for that rate.

LF says:

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David says:

I wish you would also review customer service. I have always wondered whether I can trust these online banks if there is a problem. I don’t really want poor customer service in exchange for 75 basis points.

Osgood says:

The following online banks should avoided for reasons cited:
TIAA Direct (Creff) – $5,000 max daily outgoing ACH limit is too low. Many others offer $250K.
Customer Service replies lack sender name & are anonymous. Unaccountable.
Tim Shinn- Operations in Charlotte, NC closes accounts is you object to either of above.
ally bank- This is the old GMAC, sold off when GM went bust & got taxpayer bailout.
Insists on running credit report with full accounts info, resulting in inquiry on your report for 2 years that lowers credit score. Application fails to disclose credit will be run & subject to account agreement. Violation of FCRA & dishonest to run credit without consumer authorization. ID can be verified without need to run full credit inquiry, as many banks do, despite wrong info ally spits out from misinformed reps.
Tells customers that credit inquiry is “soft hit” which is false. Soft hit only verifies ID & does not include credit account history. If your credit is frozen, to prevent ID theft, fraud & unauthorized full credit inquiry, than account will not be opened by ally. But that is OK. Who needs them¿

Pam says:

Why do you list GE Capital on here as an editor’s choice? It has a huge amount of complaints on spambook.

Rob Berger says:

Pam, I list it for two reasons. First, it offers the most competitive interest rates with no fees you’ll find anywhere. And second, the complaints you mention relate to the financing arm of GE, not its savings products.

Rose says:

I love american express. It’s the best service for me.

HYSA says:

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.

Donna says:

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?

شات مصرى says:

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!

Senaida Mendivel says:

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شات says:

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.

دردشة says:

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

Rob says:

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.

Sarah says:

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!

Robert Dudley says:

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.

Laan says:

Saving is the best way to gain a huge fortune.

stockholmer says:

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

Ben says:

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.

Fred Brown says:

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.

JoAnne says:

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.

Beri Greenwald says:

It’s good to be reminded about correct grammar. And, saving for retirement brings its own rewards. Thank you, Texas Gal!

TexasGal says:

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.

Sean says:

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.

Antonio says:

@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.

LARose says:

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.)

Max says:

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

Jersey Gal says:

Yes, they are safer for the purpose of your question about debt, because there is no place to serve an individual. At least not at present.

Frank says:

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).

Kathy says:

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!

Poofpoint says:

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.

Lillie says:

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.

Dallas Nine says:

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)


Karen says:

ING Direct just dropped their APY to 1.20. WHAMP WHAMP

Michael says:

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!

John Flanagan says:

I enjoy reading your blogposts! Just a quick comment; 12% of $1000 is $120. So, a $1000 gift card would turn into $1120.

Christie says:

I think that they said $1120.00!

eh says:

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

Gary C says:

Barclays is at 0.90% also 0.90%APY compounded daily, no maintenance fees, and it can be opened with a $ 0 balance.