Best High Yield Savings Accounts Rates
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(Updated 7/4) High yield savings accounts are the rage these days, with people pouring billions of dollars into banks and certificates of deposit. A few years ago, the only online bank with a high yield savings account was ING Direct. The first time I saw them I was a little apprehensive – an entirely online bank? But they were FDIC insured and all turned out well. Since then, dozens have popped up to offer high yields because they run leaner than traditional brick and mortar banks. No branches, no tellers, no managers, no paper statements – all result in higher yields.
Are these online banks safe? Yes, they are FDIC insured and you can confirm that with the FDIC’s Bank Find tool. In fact, with all the bank failures of 2008 (IndyMac, Washington Mutual), not a single one was an online bank.
How can they offer such high rates? They run streamlined operations, entirely online (with telephone access), and don’t have to pay for branches, tellers, and managers.
I’ve compiled a list of the best of the best FDIC insured (now up to $250,000 through December 2013) banks below.
| Bank | Effective Date |
Interest Rate (APY) |
Minimum Deposit |
| Everbank | |||
| Bank of Internet | |||
| Dollar Savings Direct | |||
| Ally Bank (GMAC Bank) | |||
| HSBC Direct | |||
| FNBO Direct | |||
| ING Direct | |||
| E*Trade Bank | |||
| Capital One Direct Banking | |||
| E-LOAN | |||
| Virtual Bank | |||
| Corus Bank |
* Everbank offers 3.01% promotional rate for the first 3 months, then 2.00% thereafter.
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Everbank Checking has a $1,500 minimum initial deposit; HOWEVER, to get the high promotional and continuing rates you must keep a very high balance (between $50k – 100k). This option is not as attractive as your chart indicates.
See Details of Everbank Checking’s Rates and APYs here:
http://www.everbank.com/001Checking.aspx
I’m going to stick with HSBC as it looks like it is one of the better rates and doesn’t have a minimum balance. Great chart though and gives me an idea of what other online banks are offering.
This really kind of steams me because of the huge “come on” that ING Direct has about being the highest interest rate (or, at least, they used to do that) and offering $25 to open an account.
I can’t/don’t want to go chasing after interest rates. Once I open an account I like to let me money sit until I need it and I’d like to get a decent rate.
Fortunately, ING Direct is still lots better than a lot of brick and mortar banks in my area.
I’ve been with FNBO for almost 2 years and I’ve been happy with them. They offered that 6% promo rate last year (ah the memories) and have kept near the top with their rates since. I keep the bulk of my savings there, though I still keep some money in ING as well. I like ING’s site, FNBO’s sucks, but if no frills means better rates then I guess it’s OK.
Vanguard tax-exempt money market mutual funds beat all these, with comparable interest rates that are, as the name suggests tax free. If you live in a high tax state (NY, CA, etc) the TEMMF rate can be more than double the paltry rates shown here. I imagine that other high quality mutual fund families (Fidelity, TRPrice come to mind) have similar TEMMF rates as Vanguard.
You left OnBank off of your list, current rate is 3.60%, also there is iGoBanking with 3.28%. Both are “Online” extensions of brick and mortar banks, FDIC insured, and require no minimum balance.
Citibank is at 3.50% now.
What was Wamu – online savings according to my October statement of 3.87%. Their site is simply terrific.
Check out Everbank at epinions and you might not think it worth the trouble
http://www99.epinions.com/reviews/finc-Financial_Services-Online-Netbanks-Everbank
Any reason you haven’t reviewed WTDirect? I have an account there and thinks it’s great.
WTDirect has been at 3.31% APY for a while and at the time I opened up all my other accounts, it was a laggard. I didn’t review it yet because I hadn’t opened an account yet.
GMAC dropped to 2.75 apy. I have one….
Thanks, I updated the list.
ING Direct just dropped to 1.85% APY. Been with them for almost 4 years now and have watched it steadily drop. Seriously considering moving the cash elsewhere.
Is it worth it, or will everyone else’s rates tank as well?
I moved funds from my ING Direct savings account after the rate dropped to 1.85% My local bank was offering a 9 month CD at 3.09% APR, so the bulk of the funds were deposited there. Since I earmarked the ING Direct money to cover my property taxes at the end of the year, locking the money up for nine months was not a big deal.
I am planning to open an Everbank money market account to take advantage of the 3.51% teaser rate. I am a Priority Club member, so getting the 5,000 Priority Club point bonus is nice.
Have you seen the rates lately?
GMAC did the old bait and switch with me. I understand that the rates are subjet to change but I was lured in with a promise of 3.25% percent. I never saw the 3.25% rate, as soon as I transfered my money in from my Capital One Money Market account(2.00%)they dropped the rate to 2.75%.
Better than what I was getting but if they drop the rates again it will have been a waste of time for me.
I don’t think GMAC did it intentionally, rates have always been falling.
Effective March 3, the interest rate on ING Direct Savings is 1.65% APR
Are you kidding me? I just jumped through all the hoops and opened a Everbank MM account one week ago. The rates have now dropped! Intro Bonus 3.51% – 2.51% and non intro 2.73% – 2.16%. I have never been worked over like this before.
I did the same thing, I think the promo rate should still be good for three months though.
I went with Dollar Savings Direct in late January when they were offering 4%. Now it is 2.05% in less than two months. That sounds like a bait&switch to me.
All the banks dropped their rates, the Federal Reserve’s target interest rate is 0.25%.
Difficult for many retired folks to make money with a decent monthly return from savings. But, inflation is around the corner.
Try a local bank. I get 2.25% for a 1 year CD which allows me 1 withdrawal a year and that withdrawal could be for the whole amount. The interest is calculated daily.
Wow ally (former GMAC) is very impressive. NO penalty CD 2.55! High online yield 2.25 savings. No minimum (your chart lists 500, but there is none) Jim, you should def review ally!
I think I may just have to!
Does SmartyPig qualify for this list?
I personally am happy with ING but have considered a switch to one of the other services listed to get a better rate. Seems like the last 3+ years ING has steadily decreased their rate. Understanding that there are numerous factors that go into a change like this, it still seems that ING tends to come up short of the other options.
That said, I’ll probably stay put because I like the usability/friendly interface and I’m a pessimist who knows that the minute I move from ING they’ll bump the rate north of whichever option I leave for…
Saw an article on Smartmoney on where to find the best rates on CD, Savings and Money market today.
http://www.smartmoney.com/spending/deals/where-to-find-the-best-savings-rates/
One Year CD’s
anmi Bank, Internet bank 2.53% $500
Affinity Bank Online 2.50% 500*
Ally Bank, Midvale, Utah 2.34% No minimum
Savings & Money Market
First Trade Union Bank 2.32% na $2,5000 minimum balance to earn APY
Doral Bank Direct 2.25% na $250 minimum balance to earn APY