High Interest Savings Accounts Online

Just for fun a few months ago I checked my savings account rate at my local bank.  I know interest rates have been at historical lows, so I didn’t expect to see much.  Unfortunately, I didn’t see much…at all.   My local bank was paying a whopping 0.15% on both checking and savings accounts.   That means on $100,000 I would make a grand total of $150.  The best part is that is before tax!

High Interest Savings Accounts Online

Knowing I needed to do something different, I started researching high interest online savings accounts searching for the best savings account rates I could find.  Before I share my findings, I wanted to first address what you need to look for when you choosing an online bank.  High interest Rates are one thing, but you have to make sure the financial institution is solvent.  Here are 5 things to consider when choosing an online savings account.

1. Liquidity and Flexibility

You want an online bank that has an interface that is easy to use and understand.  You shouldn’t have to have a Masters in Banking to figure it out.  If you plan on keeping bank accounts elsewhere, the process should be seamless in transferring money from one bank to the other.

What if you need the money?

Online banks operate different than your hometown bank.  If they don’t offer a debit card or checks, you need to find out how soon you can get funds in the case of a bind.

2. Safety – FDIC insured

How save is the online bank?

Confirm that your information is encrypted and cannot be viewed by anyone else. Peace of mind is important when it comes to your finances.

Are they FDIC insured?

FDIC limits have increased to $250,000 per account until the beginning of 2014.  The extension was included as part of the Helping Families Save Their Homes Act, which was signed into law on May 20th.  Make sure the online bank is covered by the FDIC.  A really high interest rate is irrelevant if the online bank goes kaput.

3. High Interest and Awesome Rates

Show me the money!  The leading reason that consumers seek out interest rates online is because they pay more than you get almost everywhere else.  Most online banks are competitive with each other, so be sure to shop around and find the highest savings account rate that you can.

4. Look for Bonus Rates

Nobody likes a tease, but sometimes “teaser rates” can be attractive.  One example of  a current teaser rate is through EverBank who is offering 2.25% for the first 3 months. After that 3 month period, the rate falls back to the current levels (which are still high compared to the competition).

5. Watch the Fees

Overdraft charges and balance transfer may wind up costing you. But also, many banks charge monthly fees. Know the details before opening up an account.

Best High Interest Savings Account Online

Everbank

  • Low $1,500 initial-deposit requirement
  • No-fee Online and Mobile Banking
  • Up to six withdrawals per month
  • 3 month bonus rate for new signees
  • FDIC Insured
  • Read here for EverBank Review

Sign up Here for EverBank Yield Pledge Money Market Account.

ING Direct

  • Low initial deposit requirement
  • Easy to use interface
  • FDIC Insured
  • Mobile Banking

Sign up here for ING Direct Savings Acccount.

Ally Bank

  • FDIC Insured
  • Very competitive rates on savings and CD’s
  • Open account with 0$
  • No Minimum Balance

Sign up here for Ally Bank savings account or CD’s

WT Direct

Competitive interest rate for higher balances

  • No minimum balance or maintenance
  • Friendly customer service
  • FDIC insured

Sign up here for WT Direct savings account.

Discover Bank

  • Fast & free online transfers
  • No minimum balance
  • $500 to get started
  • Pays 5 times the national average

Discover Bank online savings and CD’s

Online Checking Accounts

In the event that you’re looking for more than just a savings account, then check out Perkstreet Financial.  They have a reward program that gives you cash back for your purchases.

Perkstreet Financial

  • 1% cash back for checking accounts
  • Free checking acounts
  • Free online bill pay
  • FDIC Insured

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