Best High Yield Savings Accounts Rates

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These days, the best way to help your savings grow is by saving it in an online high-yield savings account. With interest rates as low as they are, you simply can’t get anything by putting it in your neighborhood bank. Online banks, with lower overhead, are still the best place to earn a much higher yield with absolutely no risk. After years of managing this list manually, we’re now happy to offer up this table that is updated daily with the highest rates you can find anywhere. The table is powered by Bankrate, an industry leader, and hundreds of banks are surveyed each time to ensure that the highest rates are displayed. Lastly, all of the banks on this list are FDIC insured so you know your money is 100% protected.

State of High Yield Savings

Updated 5/21/2012: A few years ago, high yield savings accounts were popular but they were an also ran. With the stock market flying high and certificates of deposit offering 5%, savings accounts were boring. Now, with the federal funds target rate set to 0.00% – 0.25% and various versions of “quantitative easing” in place, it’s hard to earn any risk-free interest.

The interest rates you can get at your local bank will be abysmal and these days “high yield” means anything close to 1%, but it’s better than zero – right? The reason why online banks can offer these higher rates is because they save money by not having branches, tellers, managers, or even paper statements. Those savings are passed onto you.

Best High Yield Savings Accounts

Ally Bank

A relatively new entrant into the online savings account world is Ally Bank. Ally Bank is an online bank that’s been FDIC insured since August 2nd, 2004 under FDIC Certificate 57803. They are a unit of GMAC Financial Services and was once known as GMAC Bank before changing their name in May of 2009. The reason I like Ally Bank is because they have no minimums on any of their deposit accounts, they offer plenty of options from an online savings account to no penalty certificates of deposit; all of which are at market competitive rates. They are certainly worth a look.

Click to apply for an Ally Bank account today!

ING Direct

What discussion of the savings accounts would be complete without a look at the grandfather of online banks – ING Direct? ING Direct hasn’t been the leader in interest rates in recent years but the quality of their website services is bested by almost no other bank. While they were recently sold to Capital One, it’s unclear whether that sale will impact the level and quality of services ING Direct currently provide. Most recently, they rolled out remote check deposit, a service that is a must for any bank without local branches.

FDIC Insurance

Are online banks safe? Yes, they are FDIC insured and you can confirm that with the FDIC’s Bank Find tool. You might be surprised to learn that in the last few years, none of the banks that failed were online banks. The last time an online bank failed was Netbank in 2007, which predating the recent economic crisis.

Do you bank with someone not on the list and want to sing their praises? Let us know in the comments below!


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30 Responses to “Best High Yield Savings Accounts Rates”

  1. eric says:

    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

  2. Patrick says:

    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.

  3. 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.

  4. Miss M says:

    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.

  5. Anon says:

    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.

  6. urbantux says:

    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.

  7. Anonymous says:

    Citibank is at 3.50% now.

  8. Andy says:

    What was Wamu – online savings according to my October statement of 3.87%. Their site is simply terrific.

  9. Jack says:

    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

  10. Lisa says:

    Any reason you haven’t reviewed WTDirect? I have an account there and thinks it’s great.

  11. jim says:

    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.

  12. James says:

    GMAC dropped to 2.75 apy. I have one….

  13. Brian says:

    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?

  14. BrewCrewFan says:

    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.

  15. dave says:

    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.

  16. BrewCrewFan says:

    Effective March 3, the interest rate on ING Direct Savings is 1.65% APR

  17. Bryan says:

    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.

  18. Mikey says:

    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.

  19. James Cessna says:

    Difficult for many retired folks to make money with a decent monthly return from savings. But, inflation is around the corner.

  20. Fatubus says:

    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.

  21. Jason says:

    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!

  22. Cat says:

    Does SmartyPig qualify for this list?

  23. jepoole17 says:

    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…

  24. TJ says:

    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


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