High Yield Online Savings Accounts
I’m a big fan of online savings accounts. I hate dealing with BS and wasting time when it comes to banking…or just about anything. The beauty of online savings accounts is the ability to link them to your checking accounts, to open accounts in 5 mins of time and the very nice rates they offer. OK so maybe they’re not so nice during this time but compared with traditional banks, they are awesome. I usually keep just enough money in my traditional bank checking account to pay my bills. The rest (excluding investments) always goes off to my online savings account so I can get a nice return on the money I have. Without the brick and mortar expenses that are associated with traditional banks, online banks are able to offer you better rates, lower minimum balances and lower fees (in my experience there are pretty much no fees). Since I’m looking to get a higher yield from my savings account (I currently use ING Direct), I’ve been looking around to see what other banks are out there and what they offer. Here’s what I came up with:
| Minimum Balance | Fees | APY | |
| SFGI Direct | $500 | $0 | 2.25% |
| UFB Direct | $0 | $0 | 1.70% |
| Dollar Savings | $1,000 | $0 | 1.60% |
| Ally Bank | $0 | $0 | 1.55% |
| FNBO Direct | $0 | $0 | 1.50% |
| HSBC Direct | $0 | $0 | 1.35% |
| ING Direct | $0 | $0 | 1.30% |
Now compare these rates with savings accounts with traditional banks:
Wachovia: .02%-.4% APY depending on amount you have. You need $250,000 in order to earn the .4%
HSBC: .05% APY
Bank of America: .10% APY
Each bank has a minimum balance requirements and monthly fees. Is it time to switch to an online bank? I think so!
