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Best Online Savings Accounts with High Yield Returns
M y local bank offers a basic savings account with a 0.01% interest rate with the opportunity for a lot of fees. If you are a high roller and have a minimum of $30,000 to open an account, you can earn 0.25% interest at that bank (the interest rate skyrockets to 0.65% if you can bring $5 million to the table). Oh, and it took me a couple minutes to find that information. Where s the transparency?
If this situation sounds familiar to you, then I recommend looking into an online high yield savings account where you can earn a better return on your money, avoid most fees, and enjoy added functionality. If you still need a brick and mortar bank, then consider keeping your local account and using the online savings account to stash your emergency fund or long term savings.
How to Find the Best Banks and Rates
All banks are not created equally. There are variations in interest rates, reliability, functionality, and more. When looking for a new bank, consider these features:
- FDIC insurance. FDIC Insurance is one of the most important features if the bank is not FDIC insured, keep looking.
- Interest rates. The higher the better, provided the bank meets your other needs.
- Account minimums. Some banks require you to deposit a large amount of money to receive the best rates or avoid fees.
- Fees. Keep these to a minimum.
- Functionality. Some banks offer great features such as unlimited sub-accounts, high yield checking accounts, Certificates of Deposit, the ability to link to a brokerage account, and more.
- Access to funds. How quickly and easily can you access your money if you need it? Is there a brick and mortar version of the bank, or is it only online?
Check out our post about the benefits of Chase Checking accounts. this is one great online banking option with perks of free money for signing up!
Top Online High Interest Savings Accounts
The following banks meet the criteria listed above, and each of them offers something a little different than their competitors. These banks are all covered by the FDIC and are great options if you are searching for a new online bank. Bank rates change often, but we do our best to maintain an accurate listing of current high yield savings account rates. Use the following chart for current options, or read more details below the rate chart.
Minimum Deposit to Open Account
About Ryan Guina
Ryan Guina is the founder and editor of Cash Money Life. He is a writer, small business owner, and entrepreneur. He served over 6 years on active duty in the USAF and is currently a member of the IL Air National Guard. He also writes about military money topics and military and veterans benefits at The Military Wallet .
Note About Comments on this Site: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Does your bank offer a money market account at a higher rate? Citibank does this and pretty sure the set up and everything was free. Same rates as the online accounts.
Craig, Yes, they offer 0.10% interest for standard money market accounts, and bump it up to 0.75% if you can maintain a minimum daily balance of $10,000.
All of the online banks mentioned above have a minimum of 0.95%, up to 2.5%. So they are better options for stashing cash, especially if you don t have $10,000 at the moment.
I would seriously suggest looking into 5 yr CDs and ladder your money. Every year you earn only 1.5% is like losing 2.5% because you re not in a 5 yr CD.
Sure, inflation may go up, bringing up rates with it. However, simply then lock in that year s bonus or cash reserves in a higher yield and repeat.
Citibank was offering 4% for a 5-yr, and they are still offering 3.75%.
It adds up if you have $500,000 in savings and miss out on 2.5% every year, that s $12,500!
Financial Samurai, I have a 5 year CD ladder for a good portion of my savings, but it is also nice to (and sometimes necessary) to retain flexibility with some funds. Most of these banks offer very attractive CD Rates, so it is very possible to save in CDs and in a savings account.
Hey Ryan Sounds good man. BTW, how on earth do I upload my picture in my profile on your site? I m a computer dummy.
Go to Gravatar and sign up for a free account. You can upload an avatar which will display on sites based on which e-mail address you use.
You can set up Avatars to display in the WordPress Dashboard under Discussion Settings if your theme is set up for them. Many themes have this capability enabled. I currently use Thesis, which you can read about here: Thesis Premium WordPress Theme Review .
Thanks for the information, as a Canadian moving to the USA the number of banks to choose from were astronomical making a financial institute to choose from to be very difficult. Outside of Credit Unions we only have maybe 10 banks in the whole of the country and for the most part they service nationwide.
For those moving to the USA I would probably recommend HSBC since they are the only international bank on this list which can make it easier moving money in and out of the country.
Has anyone tried the discover high yield savings? They offer 2% wondering if they are good or bad. I have my savings in ING now but every month they keep lowering my APR.
I haven t heard of them before, but that doesn t mean they aren t a good bank. I went to BankRate s Safe and Sound Ratings and looked up StoneBridge Bank.StoneBridge is a relatively small bank compared to some of the banks mentioned in this article. Because the audience of this website is nationwide, I don t focus on small or regional banks, or banks with membership requirements. That is because there are so many of them and they aren t always the best option for people who live across the country, particularly when some of the larger banks have a more extensive ATM network, more B M locations, and excellent online features.
If you are happy with them, then by all means, enjoy your hidden gem!
I wish to tell all the members of the younger generation to be aware of all the investment opportunities that are available and for God sake save every dime you can. Retirement is right around the corner, don t be caught short.
What is Bankrate.com, their site is very confusing. I see you reference them from time to time, do you recommend the site for credibility?
Larry, Bankrate.com is an industry leader for objective bank rankings (see their Safe and Sound rankings ) which are based on public information, regulatory filings, etc. They also offer a wide array of tools, including calculators and comparison tools. Their site is legitimate and has been referenced by all of the major news outlets, such as CNN, Yahoo. MSN, etc. (they also advertise heavily on some of these sites).