For those who want to know my short list of the top 5 online savings banks that offer the best yield interest rates for savings and checking accounts, here they are. All of the top 5 or 6 banks I list here also provide very competitive online banking features and back their banking websites up with commendable customer support:
- FNBO Direct - 3.25% APY
- WT Direct - 3.31% APY
- E-Trade Savings - 3.30% APY
- HSBC Direct - 3.25% APY
- ING Direct - 3.00% APY
- Emigrant Direct - 3.00% APY (Honorable Mention)
Interest Rate Chasers and Choosing A High Yield Savings Account
There’s an interesting breed of savvy savers called high yield interest rate chasers that are continuously on the hunt for the best interest rates. However, although it is very important, I don’t think high interest rates alone should be the sole determining criteria when deciding where to do your banking. Thus you don’t need to immediately go nuts and jump ship whenever your bank drops your interest rate by a few decimal points. There are other quality factors worth taking into consideration and evaluating such as - reliability, customer service, website interface ease of use, brand name reputation, availability of brick and mortar branches, and consistent history of offering high rates. Just for the record, the vast majority of my cash is invested in the stock market, but what little cash I have is stashed in my Citibank Ultimate Savings Account. It doesn’t offer the highest APY interest rate out there, but Citibank has always offered reliable and satisfactory service, with the added convenience of brick and mortar branches. Of course, with the growth of online banking and the stiff competition among online banks for high yield banking customers, I will likely expand my high interest savings account options very soon.
The online banks listed below are sorted in the order of interest rate currently offered, starting with the highest APY. I’ve chosen to leave out some regional banks as well as several established institutions like JP Morgan Chase Bank, Wells Fargo, and Bank of America for various reasons. Many of them either offer terrible interest rates for their savings and money market accounts, or their top rates require too high of a minimum account balance to achieve (frequently more than $100,000). Below, I’ve also provided information such as the minimum initial deposit required to open an account, as well as additional noteworthy information such as whether there are fees or minimum balance requirements.
All of the online banks listed below have indicated that they are fully FDIC insured, which means all customer bank accounts are protected against catastrophic bank failure and financial loss up to a fairly substantial amount, backed by the full faith and credit of the United States government. As we should all be well aware at this point in time, due to the near rock solid FDIC insurance coverage that they provide, checking, savings, and certificate of deposit (CD) accounts invested at traditional and high interest online banks are the safest places to put your money during turbulent economic times.
| |||||||
| Bank Name | APY Rate | Min | Notes and Additional Info | ||||
|---|---|---|---|---|---|---|---|
| FNBO Direct | 3.25% | $1 | No fees or minimums | ||||
| Countrywide Bank | 3.50% | $1,000 | Need $10,000 to get the top rate. 2.50% APY interest otherwise | ||||
| WT Direct | 3.31% | $1 | No minimum. Need $10,000 to continue the max rate after 60 days - 0.50% APY otherwise | ||||
| E-Trade | 3.30% | $1 | This popular brokerage/bank provides lots of financial services in one place | ||||
| iGO Banking | 3.28% | $1 | No fees or minimums | ||||
| HSBC Direct | 3.25% | $1 | No fees or minimums | ||||
| Savings Square | 3.05% | $1 | No fees or minimums | ||||
| ING Direct | 3.00% | $1 | No fees. Good customer service and this online bank has been around. | ||||
| Emigrant Direct | 3.00% | $1 | No fees or minimums | ||||
| Capital One | 3.00% | $1 | Money market account. No fees | ||||
| Citibank Ultimate | 3.00% | $5,000 | Make 2 bill payments via linked Citi account to get top rate - 2.27% APY interest otherwise | ||||
| UFB Direct | 2.50% | $1 | No fees or minimums | ||||
| AmTrust Direct | 2.00% | $1 | Money market account | ||||
No comments:
Post a Comment