Which online high yield savings account is best? Updated 2020

Which online high yield savings account is best? Updated 2020

 

Saving money is essential to building your net worth. Savings accounts and money market accounts are meant to hold your liquid assets or funds that you expect to use within a year. You may think, “If you've seen one high-yield savings account, you've seen them all” but, actually, higher interest rates and certain features can make one account a better choice than another.

Online High Yield Saving Account and Money Market Account Rates

As online banking has evolved, consumers can find a high yield and still hope to get the mobile and digital banking convenience they need. They're free to compare interest rates and account features in search of the best online high-yield savings account for their liquid assets.

Savings Accounts

When you want to set up an emergency fund or other savings account for short-term liquidity, an online savings account usually offers higher interest rates than many brick-and-mortar banks. In addition, online banking is much more convenient.

Money Market Accounts

While money market accounts are similar to savings accounts, they used to earn higher interest rates and their restrictions then were more stringent than they appear to be today. Our research is showing that, in some respects, the differences between the two types of accounts are blurring.

In your search for the best money market account, you may find that interest rates are quite similar to savings account rates. Also, the minimum balance requirements and number of withdrawal transactions allowed may be on par with savings accounts. All of this underscores the need to personally investigate the specifics of any account you open.

Even though rates are low right now, they will eventually rise as the economy recovers. Regardless, it is important to develop the habit of saving. Keeping track of the latest interest rates is the research part of that habit, but the payoff is that the best interest rates and services can help you make the most of your savings in any economic environment.

Here is a synopsis of what some of the major banks offer with a direct link to their individual website. That way you can easily learn more and open an account when you are ready.

The Best High-Interest Savings Accounts

Most Americans aren't saving much these days, but if they knew how to better grow their money with high savings rates, they may change their mind. One recent survey found 62 percent had less than $1,000 in a savings account, and only 29 percent had over $1,000 put aside for emergencies.

Many will point to low interest rates as the reason they are not saving in an account, adopting an almost “why bother” attitude. But having a savings account is smart for several reasons:

  1. In case of emergency, there's actual money to cover the cost, so you don't end up overloading credit cards or having to take out a loan.
  2. It makes you more aware of your overall financial picture, especially if you set up a schedule to make deposits into the savings account.
  3. Saving money up front also saves you on interest if you do need to cover an unexpected cost or save for something specific like a new car or a vacation.
  4. If you lose your job or find your hours reduced, a savings account is a nice addition to whatever severance or unemployment you receive.

With all the reasons to open a savings account, how about exploring these options?

Here are the best savings accounts for 2019:

Online Savings Account

Ally Bank

With a high savings rate, Ally Bank customers benefit from no monthly fees or minimums. Using the Ally Bank mobile app, customers can pay bills, perform money transfers and make deposits via mobile check deposit or other methods like electronic transfer, direct deposit or mail.

Synchrony Bank

In addition to a top-rated APY of 1.50%, Synchrony Bank offers a rewards program to get more out of your savings account. Synchrony Bank customers are automatically enrolled in its Perks program when they open a savings account (or other account like a certificate of deposit or individual retirement account). Synchrony Bank Perks gives customers a chance to earn rewards like ATM fee reimbursements and travel discounts.

Discover Bank

While Discover Bank is a big name among credit cards, its savings account is also deserving of attention, featuring no monthly maintenance charges. There is no minimum to open an account with Discover and after opening your savings account, there are no other minimum balance requirements to earn a high APY of 0.95%.

Barclays Bank

Barclays Bank offers an online savings account that has no minimum balance to open and a small minimum of just 1 cent to grow your money with an APY of 1.50%. The bank's mobile app has various features to manage your account like reviewing balances, transferring money and more.

MySavingsDirect

For a no frills online savings account, look to MySavingsDirect with its MySavings Account with no minimums to earn APY. Although MySavings Direct does not have a mobile app to oversee finances, customers can access their account information via online banking.

Bank5 Connect

Though Bank5 Connect has minimum balance requirements unlike some of the other banks on the list, it still has a similarly high savings rate. The bank has a minimum opening balance of $10. To earn the advertised APY of 0.90%, customers must deposit $100.

CIT Bank

True to its name, the High Yield Savings account offered by CIT Bank has one of the highest savings rates among the Best Savings Accounts with 1.05% APY. This free savings account has a low minimum opening deposit requirement of $100 to get this rate and no minimum daily balance requirement.

Best Savings Account Rates

Reminder: In terms of interest rates, there's no difference between a money-market account and a savings account. “Money-market account” is simply a marketing term for high-balance/high-yield savings accounts.
  • Barclays is offering a 1.50% APY for its online savings account. There are no monthly fees or minimums either. They also offer some attractive CD Rates. (Rates as of January 23, 2018.)Barclays requires no minimum balance, and there are no monthly fees. They also advertise interest is compounded daily. Barclays is a large bank, that has been around for over 300 years, and operates in 50 different countries. Barclays and GE Capital Bank for Money Magazine's Best Savings Account of 2013.
  • Ally Bank currently offers a 1.45% APY online savings account with no minimums. (Rates as of 09 February 2018.)They have a heavy marketing campaign going right now so you have probably seen their ads stating, “You can also depend on no monthly fees, no minimum balances or deposits, and no sneaky disclaimers.”
  • Incredible Bank is offering 0.95% APY on their money market account for balances between $0 – $249,999.99. (Rates as of December 11, 2016.)
  • SFGI Direct offers a 1.06% APY savings account with a $500 minimum to open but only a $1 ongoing minimum balance to earn interest. The SFGI Direct savings account can only link to one external account. (Rates as of December 11, 2016.)
  • Discover Bank has a 0.95% APY online savings account with a $500 minimum to open. (Rates as of December 11, 2016.)
  • CNB Bank Direct pays 0.26% APY on its high- yield savings account with a $1 minimum balance. (Rates as of December 11, 2016.)
  • CIT has a savings account which offers a 0.95% APY for all deposits between $100-$24,999 and 0.95% on any deposit of $25,000 or above. CIT was founded in 1908 in St. Louis by Henry Ittleson with a mission to provide financing for businesses. Throughout the 20th century, CIT continued to grow, offering financing, lending and insurance for corporations in all sectors. CIT Bank, an FDIC-insured institution, serves consumers and small businesses with certificates of deposit, savings accounts and custodial accounts. (Rates as of December 11, 2016.)
  • Everbank offers high-yield checking, savings and money market accounts with a variety of APYs, including a one year intro rate of 1.11% APY for Yield Pledge Checking and Money Market Account holders. There's a $5000 minimum deposit to open. Click through to learn more. (Rates as of December 11, 2016.)EverBank is an online-only bank that has been named “Best of the Web” for 5 consecutive years by Forbes.com and was also named “Best of the Breed” for online banks by Money Magazine.
  • Sallie Mae Bank has a 0.85% APY high-yield savings account with an added twist: If you use Upromise, the Sallie Mae savings account gives you a 10% rewards match. (Rates as of December 11, 2016.)SallieMae is best known for originating, servicing and collecting on student loans, and while they have a very competitive rate on the SallieMae high yield savings account, they also stay close to their education focus by providing a 10% match on UPromise earnings.
  • GRS reader favorite SmartyPig is paying 0.80% APY for account balances up to $2,500. SmartyPig is a goal-oriented savings account that many folks love. (Rates as of December 11, 2016.)
  • Nationwide Bank is paying 0.50% APY with a $1,000 minimum opening balance on their Money Market Account. (Rates as of December 11, 2016.)
  • OneWest Bank has a Green Savings account that currently pays 0.40% APY for balances up to $49,999. (Rates as of December 11, 2016.)
  • Zions Bank has long had some of the top savings account APYs in the country, and their non relationship Internet Savings Account is at 0.45% APY right now. To qualify for this rate, your balance must be over $1,000. In addition you may be eligible for a higher APY if you meet the relationship qualifications. (Rates as of December 11, 2016. Rates located in New York.)
  • iGOBanking is providing a 1.00% APY with no fees and no minimums. (Rates as of December 11, 2016.)
  • Dollar Savings Direct has an APY of 0.55% with no fees and a $1,000 minimum balance. (Rates as of December 11, 2016.)
  • FNBO Direct has an 0.95% APY online savings account with a $1 minimum deposit. (Rates as of December 11, 2016.)FNBO was named best online savings account by Kiplinger's Personal Finance magazine. FNBO has also been rated as one of the safest of the major online banks according to a study by bankrate.com.
  • Capital One has a 360 Savings account that pays 0.75% APY. No fees and no minimums. Capital One 360 is the old ING which was the darling of the personal-finance blogosphere. I use them too. (Rates as of December 11, 2016. Rate collected within: 10025 — NY.)
  • The HSBC Advance Online Savings Account currently provides an 0.01% APY for balances up to $14,999.99. There are no monthly maintenance fees, though you do need a buck to open the account. (Rates as of December 11, 2016.)
  • Emigrant Direct offers 0.50% APY with no fees and no minimums. (Rates as of December 11, 2016.)
  • Lending Club is an alternative to investing your money in a bank. Lending club is a peer to peer lending service. You can invest in people who are requesting personal loans through lending club, and they offer a 5.12% – 7.78% return on your investment for Grades A to C. (Rates as of December 11, 2016.)

This second group of banks is also worth considering. They tend to have stiffer requirements, more hoops to jump through, or lower customer reviews. (Note: E*Trade savings accounts are being sold to Discover, as Joe noted in the comments, and they have been removed from the list):

  • Savings Square Savings Account offers 0.55% APY. $200 minimum to open. Electronic interface only. I've had a couple readers tell me setting up an account at Savings Square is a nightmare. Rate as of December 19, 2014.
  • Presidential Online Bank Premier Savings Account offers 0.50% APY on balances up to $35,000. Balances in excess of $35,000 earn 0.25% APY. Why rates drop as your balance goes up is a bit of a mystery. No fees, ATM access, web interface. $5,000 minimum to open. Rate as of December 19, 2014.
  • Emigrant Direct Savings Account offers 0.50% APY, no fees, web interface. No minimum. GRS readers like Emigrant Direct. Rate as of December 19, 2014.
  • Lending Club is another option, but its not like a bank. Lending club works by people requesting personal loans between $1,000-$35,000, while others fund (fully or partially) them based on criteria provided by Lending Club. Although this option isn't as safe as a traditional bank as it lacks some of the protections afforded to traditional savings accounts by FDIC insurance, lending club offers yields above today's deposit rates. Projected returns for grades A-C 4.74% – 7.98%. Rate as of December 19, 2014

The rate of personal savings has been increasing recently, even despite low rates. A reader sent in a story about online banks last November, but that discussion was specifically about customer service. I'd like to hear from people who use one (or more) of these banks and can tell me more about the features. Which one should I choose and why?

You may also be interested to learn about rewards checking accounts. Also, Canadian readers should check out this article about Canadian high-interest savings accounts.

You can use the EDIE calculator to check on which types of accounts at which banks and for which amounts are FDIC insured. Do your homework and choose an online savings account that works for you.

Have you been able to find savings or money market account rates that are even better than the ones listed here? If so, please let us know. Don't forget to include all the details: name of the bank, state, rate, when you opened this account with this rate and whether one can you open an account online or have to come in person. I'd like to find the best possible savings account rates and money market rates to share with Get Rich Slowly readers. Rates are low right now, but they'll rise as the economic crisis eases. For more information about these banks, please see the 1,700+ comments that follow this list.

Comparing High-Interest Account Features

When it comes time to research which online high-yield savings account or money market account is best for you, take a look at the information we consistently maintain on this page and bookmark it. Plan to come back frequently to check that your accounts are still performing the way you want them to in light of any new rates and terms being offered.

An online savings account or money market account is a safe and convenient way to earn interest on funds that you may need easy access to. Either is a far better choice than simply keeping extra sums in cash or in a checking account.

Now that online banking is mainstream, many accounts offer some pretty nifty bells and whistles. It pays to shop for the best rates, the best service, and the best policies regarding their fees and services. Here are some of the most important factors to consider:

Safety

Banks are not required to be insured by the Federal Deposit Insurance Corporation (FDIC). Most are FDIC-insured up to the legal limit of $250,000 per depositor, per insured bank, for each account ownership category though.

Fee Structure

Monthly maintenance fees, statement fees, and ATM charges are just a few of the ways banks charge for their services. Since these costs can quickly exceed the interest you earn in your account, it is very important to compare each bank's fee structure to find the most competitive terms.

Minimum Deposit Requirements

Banks may require that a certain amount of money be deposited when you first open a new savings account. Some banks waive that requirement now and allow you to fund your new account with whatever balance you choose. A minimum deposit requirement is more common with money market accounts, however.

Minimum Balance Requirements

Likewise, some banks require that you maintain a certain minimum balance in your account at all times in order to avoid paying their monthly maintenance fee.

Transaction Limits

You can make up to six withdrawals or transfers without charge from your savings accounts during any statement cycle according to Regulation D of the Code of Federal Regulations, Title 12, Part 204.

Even though many money market accounts allow check-writing privileges and debit-card transactions, Regulation D applies to this type of account as well.

Linking Accounts

Many online banks make it easy to transfer money between your various accounts even if they are with a different bank. This is especially convenient when you open your new online savings or money market account.

24-Hour Access

One of the best features of online accounts is that you can manage your money whenever you like 24/7/365. You don't have to travel to a branch or wait for it to open.

Mobile Banking Apps

It is possible to do your banking from anywhere with some of the mobile banking applications available at an online bank as well. In addition, online banks invest heavily in making sure that every transaction is secure.

We're working hard to find the best possible savings account rates and money market account rates to share with the readers of Get Rich Slowly. Do your homework and choose an online saving or money market account that works for you, and then share that knowledge with others in the comments.

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Covert7
Covert7
13 years ago

When I started researching this stuff, I used to look up MMA Savings Accounts across the 100 top yielding accounts at banks (web or otherwise). From there I went with GMAC Bank since it had (and still does) have a >5% rate on an MMA savings account. I use this to hold my emergency fund money. I can quickly transfer funds from the site to my checking account at my local bank. Simple to use and good returns while keeping my money very liquid in case I need to get my hands on it quickly with no penalties. And do… Read more »

Mark
Mark
13 years ago

Who cares which one has the highest interest right now? Choose one that consistently has high interest rates and go with them. HSBC and GMAC have both had high interest rates over a long period of time. They might not be the highest but I don’t like switching banks every 3 months chasing a better rate.

anonymous..
anonymous..
13 years ago

i wonder why ING is lower than the rest of the others? getting at least 5% would be nice

maybe i should think about switching

chris hollander
chris hollander
13 years ago

“Has anyone used this? Do other banks offer similar features?”

my account at fidelity has a feature called “full view”, which is actually a branded version of an account aggregation service offered at http://www.yodlee.com. its not quite full featured, but its a great overall account aggregation service. its also available for free, direct from yodlee.

Cheryl
Cheryl
13 years ago

I have bonus referral links for ING if you decide to go with them, $25 bonus on a $250 account opening. Drop me a line if you want one! I have 2 accounts with them and am very happy with the ease of transition, direct deposits, and customer service!

Covert7
Covert7
13 years ago

Good point Mark. Since this article mentioned this as a “savings” account, I wouldn’t keep moving my money around just because another institution can give me a 0.85% higher rate than where I’m currently out. It can get confusing and messy doing that frequently.

Funds that I would juggle around would be stuff for middle term investments not my short term or emergency money.

J.D.
J.D.
13 years ago

Yeah, I’m not interested in chasing rates. I just want to find an institution that pays consistently well and offers good customer service and ease of use. Anything is better than the 0.4% I’m earning now, right? 🙂

Dennis
Dennis
8 years ago
Reply to  J.D.

If your looking for High Yield Cash/Savings Accounts there is a great bank in Cape Girardeau, MO that does online accounts called Kasasa Cash that is a checking acct that pays 2.00 APY !! But you have to make like one direct deposit a month and have twelve debits from the account per month as well. It is easy if you set up some really small “auto” debits for stuff you need to pay off or bills. The bank is called Wood and Huston Bank. A lot better than HSBC which sends you an email every other week saying they… Read more »

brad
brad
13 years ago

I’ve been using ING Direct here in Canada for two years and couldn’t be happier, although I’m jealous of the higher rates you get in the States (ING’s interest rate here is currently 3.5 percent). I wonder if there are any better alternatives to ING in Canada; I’d love to hear about them if they exist. Here in Québec, ING is the only place I know of where you can make money on a savings account; all the regular banks provide such low interest rates and charge such high fees that you are literally better off financially keeping your money… Read more »

Travis
Travis
13 years ago

I have had an EverBank checking account for a year now and the customer service is simply amazing. I get 3% interest for checking and they offer a money market account with 5% and 6% into for 3 months with only a $1500 minimum.

sjw
sjw
13 years ago

Brad, President’s Choice is now in Quebec: http://www.pcfinancial.ca/

4% on balances of at least $1000.01.

James
James
13 years ago

Citibank’s e-Savings account has a 4.75% rate, but it requires a Citi checking account. A Citi checking accounts can be a fantastic deal if you live someplace with no Citi branches; they will reimburse ATM surcharges if there is no Citibank in your home county. I moved my checking and savings to Citi a few years back and I have not paid a single bank fee since. In fact, they were running a promo at the time that paid me for moving my accounts, so I’ve come out $200 ahead on the whole deal. You can also do instant transfers… Read more »

Z
Z
13 years ago

I have an ING account and can shed some light. I believe the reason why ING currently has a lower rate is because they have been working hard on pushing out a product called Electric Orange. Basically what it is is a checking account with all your usual perks: direct deposit, free online bill pay, and ATM/Debit card. On top of that, they also have an interesting way of sending checks. They give you an online address book so that if you need to send a paper check, you can click who, type in how much, and ING will automatically… Read more »

Jim
Jim
13 years ago

I’ve used HSBC’s online savings account at 5.05% for about six months now for my emergency fund. Account security is second to none, customer service isn’t half bad, and I love watching that interest roll in month after month.

As an added bonus, they’ll give you 6% on all money deposited before 4/30.

Bessam
Bessam
13 years ago

Hey Brad (and other Canadians!):

Redflagdeals has a nice article about the options available to us: http://www.redflagdeals.com/deals/main.php/articles/savings1/

It was last updated in September so rates may have changed, but at least it’ll give you an idea of where to look for more information.

Nishant
Nishant
13 years ago

I have been using ING Direct for a while and recently opened an Orange checking account as well. The checking account actually pays a higher interest rate than the savings, if your balance is more than $50,000.

dan
dan
13 years ago

I’ve had an HSBC online savings for about 6 months and have no complaints. The account setup is long because they send everything through the mail.

You can tell they’re focused on security, even when it makes things less convenient (which is most of the time because they’re diametrically opposed), but I appreciate that as a customer.

Phone service is helpful once you get a person, but took me 5-15 minutes the few times I’ve used it.

Brian
Brian
13 years ago

ING will give you $25 bonus if you find a referral link (all over the web); I could even give you one. 🙂 We have 3 accounts with them because it’s so easy to set up additional accounts and it’s nice to keep large items were saving for separate (vacation, taxes, computer). The bank transfer can be slow at times (why does it take 3 days to transfer money between banks?); I’m not sure if that’s true at all banks. I didn’t realize we’re loosing 0.5% by going with them (vs E-trade), with the amount we keep there, it’s probably… Read more »

Aaron
Aaron
13 years ago

Your Countrywide APY is incorrect. It’s 5.4% only if you have a $50,000 minimum balance. For

Aaron
Aaron
13 years ago

whoa… messed up comment. I guess it doesn’t like less than symbols 🙂

Anyway, for less than $10,000, the APY is only 4%.

Clearly they’re trying to be sneaky, which is a good reason to steer clear of them.

Adam
Adam
13 years ago

I’ve been using HSBC for about the past year. No complaints, it has really been a nice account. Very security focused as well.

finance girl
finance girl
13 years ago

Have you considered a brokerage account? They usually also have money market mutual funds for 5% or better (not FDIC but still your risk is pretty much 0). You can online link to/from your checking accounts and transfer very easily and quickly. I have a Fidelity account and am very happy with it; also like the fact that I have $8 trades (I have a Gold account though; most trades are $10) another one to think about is Ameritrade. They just got a huge writeup today on cust sat and I can’t imagine that they wouldn’t have a high yielding… Read more »

Stephanie
Stephanie
13 years ago

I have accounts with Emigrant and Etrade – both were easy to open and I haven’t had any real trouble with them. Someone did come by my site the other day and leave a comment that in their experience, Etrade’s transfers from the bank account don’t work as promised, resulting in late payments and problems. I haven’t made any transfers with the account other than the opening balance, so I don’t know myself. Everything I’ve ever heard about ING has been overwhelmingly positive – it’s almost like a cult! I myself am waiting to open an account, once I have… Read more »

finance girl
finance girl
13 years ago

oops I meant to say more. Transfers are only 1-2 days between Fidelity and BofA so pretty quickly. The default settlement account, a municipal money market and thus tax free, is 3.5%. Really, good stuff! And you can buy CDs for free and since there’s so much visibility through Fidelity, banks list pretty competitive CDs (I buy CDs 6-12 month term with monthly payouts with annual rates of 5.2% which is great; CDs are FDIC insured).

BillyOceansEleven
BillyOceansEleven
13 years ago

I am a total interest rate whore, so I have accounts at several of them. Presently nearly all of my cash is in HSBC for the 6% APY promo, although I will move it back to Presidential’s savings account once the promo expires. I highly recommend Presidential’s internet plus checking account as well (4.5% APY on a checking account ain’t bad either). If you don’t want to jump around for rates, both EmigrantDirect and HSBC are good choices. ING was the first in the game but they aren’t staying competitive anymore and just aren’t relevant to a discussion of “high-yield”… Read more »

Cody
Cody
13 years ago

Great article, I’d like to see similar about the variety of IRA options that are out there.

brad
brad
13 years ago

Thanks Bessam and sjw for the Canadian tips! If ING is able to provide their Electric Orange service in Canada for zero or low fees, I’ll drop my bricks-and-mortar bank immediately. Last year I paid $173 in bank fees (there’s no such thing as free checking in Québec, at least as far as I know) and earned $2.95 in interest from my regular bank. With ING I paid $0.00 in fees and earned $1,230 in interest.

Ed
Ed
13 years ago

I’ve been using HSBC for about 3 months. Overall, the process to set it up took a little while (mostly because they mailed everything separately), but the process only took me a couple minutes. Their website is easy to navigate, the bank transfers only take a few days to go through. In general I have been very happy with them. And its difficult enough that when I put money into it I won’t be pulling money out all the time. Thats why I have a checking account. Its a great way to actually save.

Patrick Szalapski
Patrick Szalapski
13 years ago

I started with ING, but HSBC is better. I love the EasyView service, which is a “view all online accounts on one page.” I have set up 20 accounts to view there–it totals it all up and sections it out.

Jason
Jason
13 years ago

I’ve used ING since 2004 and have always been pleased with them. I also just opened up an Electric Orange checking account with them, 4% interest, and I’ve been using it for about a week now. So far so good!

Bryan
Bryan
13 years ago

Is Captial One really the only one that offers a Debit Card with the account? I like the idea of how easy it could be to access the account, but I’m not a huge fan of CO. I’ve looked into ING, but I don’t think they have a debit card, anyone know for sure?

Jenny
Jenny
13 years ago

I have had and ING Direct savings account for a while now. I have made a nice chunk of change parking my student loans there. I just opened up and Electric Orange checking account, which took about 3 seconds to do since I am already a customer. I like ING because the features of the accounts cover all the bases of what I am looking for in a bank: high interest, no fees or minimums, ease of use, and good customer service. As soon as I graduate and get a job I intend to open a money market with them… Read more »

Ryan
Ryan
13 years ago

Be warned of the citibank account. I’m not sure how other’s work when tied to your checking but with this account you can only make about 6 transfers out of it to your checking during a billing cycle… online at least.. I was successful completing a transfer at the ATM

Pat
Pat
13 years ago

For my emergency fund account, I’ve been using Paypal for the last 2 years and it has treated me really well. It’s at 5.05% in a money market account, and although it is not FDIC insured, it’s an easy and reliable way to hold money so it is virtually liquid yet still making interest. Do you guys think I should switch to one of these savings accounts referred to on this post? Don’t worry, I’m never tempted to just buy something impulsively on ebay, which I hear is a problem for some who store money on paypal. Any feedback would… Read more »

Gaming the Credit System
Gaming the Credit System
13 years ago

One that you left out is PayPal. Most of us already have PayPal accounts, and they offer a Money Market account that is earning 5.05% APY. I don’t keep tons of money there, but it’s nice to have for (minimal) eBay income not to have to worry about it before I transfer it to my bank account.

db
db
13 years ago

JD — I have an ING account and also signed up for an Emigrant Direct account although I’m not using it. While opening the account I needed to call Emigrant Direct and had a really bad customer service moment. On the other hand I really love my ING account — I like the web interface and security features. I’d like the higher interest rate but when I calculated it, at least in the short term there wasn’t a huge difference. So I’ve been procrastinating in looking elsewhere. If I did it would probably be Everbank or HSBC. I have no… Read more »

Elissa
Elissa
13 years ago

I personally use ING Direct for my savings account. I’ve been using ING since 2001, though I haven’t been very active with it until November of last year (hard to get into savings when you’re in college). I’m one of those people who wants to do EVERYthing online and thinks that everything should be instantaneous. And while yes, ING’s transactions aren’t what I would consider instantaneous (usually takes 3-4 days for deposits and withdraws to process) it’s pretty good considering it’s a 99% online acocunt. That and I have it linked to my BoA account, so I tend to blame… Read more »

Paul
Paul
13 years ago

I had an E*TRADE account and two ING accounts (US & Canada). E*TRADE customer service is the worst I’ve ever seen. It took me months to establish EFT. Be prepared to pay a fee if you decide to close the account. I have no complaints about ING.

Mark
Mark
13 years ago

Definitely look at features in addition to rates. I did a lot of research (bankrate.com, as others have mentioned) before choosing GMAC for myself. They have high rates (5.1% currently), fast ACH transfers, a debit card, and *free checking*. The last is the most important for me. It is limited to three checks written per month, but since I rarely write checks, it’s perfect for me, personally. I don’t need a separate checking account at all – everything goes in the MMA with its high interest.

Deepak Sharma
Deepak Sharma
13 years ago

Like a few other fellow readers, I too used bankrate.com and zeroed-in on GMAC. The MMA account currently offers 5.0% APY. Their website is very user-friendly, and the customer service is the best I have encountered anywhere.
It is best to go with a reputed company and one that does not change their rates every few months. Also, it was important for me to open an account with a company that does not indulge in cheap gimmicks to attract customers.

Special Ed
Special Ed
13 years ago

I use Amboy Direct 5.25% APY up to $19,999. 5.35% paid for $20,000 and up. FDIC insured.

Ken
Ken
13 years ago

Fatwallet.com has a forum thread that follows Savings rates and each has a separate discussion thread on people’s experiences with the company. Should be a useful tool for anyone doing the search:

http://www.fatwallet.com/t/52/437553/

I am currently using GMAC Bank and have been happy with their service. They don’t have the best rate, but transferring money to and from is pretty quick and painless.

Ross Hollman
Ross Hollman
13 years ago

I initially signed up with ING for a 5% promotion that they were running and have to say that compared to some banks like Wells Fargo, the interest rates at ING are pretty good considering that there is no minimum balance required. A few things to note with ING: (1) If you are putting money into an ING account via electronic transfer, it takes several days to link the accounts; basically ING does some small (i.e., less than $1) deposits into the account that you are linking to and you are required to verify those amounts on the ING site… Read more »

KJS
KJS
13 years ago

Another HSBC customer chiming in – I have had no problems with my account. I was able to use my account all over Europe with a flat 1 euro/transaction fee for non-network ATMs. The fact that you have access to phone support worldwide is quite good and I like the security features they offer. I’m going to India to work in July for 6 months and will definitely be using HSBC as my primary USD denominated account, as the wire transfer fees (salary while over there will be denominated in INR) are relatively low ($15 a transaction) compared to the… Read more »

Steven W
Steven W
13 years ago

I want to switch bank accounts, but I am a minor. I could get my parents to make an account for me and then put my money in it, but then I would be taxed at their rate. I have almost $5000 and am really looking for a way to make higher returns on it (as compared to my 1.25 rate). Any tips for minors?

db
db
13 years ago

To reiterate KJS, I’ve done some amount of research on how I’d bank if/when I move abroad, and I thought HSBC was probably going to be my best option for handling any residual bill paying in the US.

Steven — couldn’t your parents help you get the online account set up? I confess I really don’t know an answer for you, but I think you and your parents should contact your online bank of choice and see what’s possible.

Ronak
Ronak
13 years ago

>Has anyone used this? Do other banks offer similar features?

Money Center from Yodlee is a full aggregation service. At the back-end on a few of these banks, yodlee is the software that is used.

https://moneycenter.yodlee.com

Bank of America also uses Yodlee aggregation service in “My Portfolio”.

Kevin
Kevin
13 years ago

I’m late to comment and I’m not going to read all 48 other comments, but my Dad had E-Trade and –hated– them. Customer service is terrible. If your brokerage account dips below $10k (say because the market goes down), they start hitting you with inactivity fees ($40 a quarter).

Ridiculous.

ING is by far the best. You’re only missing out on .25-1% with ING, you get great customer service, and fantastic online security.

Mike Panic
Mike Panic
13 years ago

OK, I’m really late to this article, but I’ll echo nearly everyone else about ING. I’ve been using them for nearly two years now and have been more than thrilled. The new interface is uber secure, the actual transfering of money is super easy and the options to do auto-deposits on a regular basis is great. The downside to ING that I’ve found is that it takes 10 full days from the time you transfer money till the time you start earning it. A co-worker recently tried HSBC because he wanted to make a bit more money than his ING… Read more »

Wesley
Wesley
13 years ago

Great discussion! This article came at the exact time that I’m looking for an online bank. I’m considering Countrywide… they’ve got the rates (and they currently have my mortgage). Besides being relative newcomers, I wonder if there are any other negatives about them? I’m not concerned about the tiered interest levels, but consistent rates and any fees could definitely be a factor.

Ed
Ed
13 years ago

I have been using HSBC for the higher rate. I have not been impressed with the speed of the balance transfer. For example on Tuesday evening 10pm, I went to HSBC site and transferred $900 from my credit union. Wednesday I get an email from HSBC that says I have requested a tranfer. Thursday it is taken from my credit union account, Friday to Sunday nothing. Monday I get an email that says the transfer is complete and it should show up in my HSBC account within the next 24 hours. So on Tuesday, a full week later, the transfer… Read more »

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