Best High Yield Savings Accounts Rates
(Updated 1/5/09) 
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.
I’ve compiled a list of the best of the best FDIC insured (now up to $250,000 through December 2009) banks below.
High Yield Savings Accounts Rates
| Bank | Rate (APY) |
Minimum Balance | High Yield Savings Account Review |
| Dollar Savings Direct | 4.00% | $1,000 | Dollar Savings Direct Review |
| Everbank Checking | * (see below) | $1,500 | EverBank Review |
| GMAC Bank | 3.25% | $500 | not yet |
| Bank of Internet | 3.20% | $1000 | not yet |
| OnBank (M&T Bank) | 3.60% | $1 | not yet |
| iGoBanking | 3.08% | $1 | not yet |
| WTDirect | 3.06% | $10,000 | not yet |
| E*Trade | 3.01% | $1 | E*Trade Review |
| FNBO Direct | 3.25% | $1 | FNBO Direct Review |
| HSBC Direct | 2.60% | $1 | HSBC Direct Review |
| ING Direct | 2.50% | $1 | ING Direct Review |
| E-LOAN | 2.06% | $5,000 | not yet |
| CapitalOne Direct | 1.50% | $1 | not yet |
| Virtual Bank | 1.00% | $100 | not yet |
* Everbank offers 3.76% promotional rate for the first 3 months, then 3.09% thereafter.
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Tags: Dollar Savings Direct, E-LOAN, Emigrant Direct, ETrade, Everbank, FNBO Direct, High Yield Savings Accounts, HSBC Direct, ING Direct
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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.