So far, 145 banks and thrifts have been closed by regulators since the start of the credit crisis in 2008. One hundred a forty five. Every Friday, when the FDIC usually announces closures, for the last two years, we’ve expected at least one bank to fail… sometimes two. Last week, five banks failed, bringing the 2009 total to 120.

Scary huh?

So you might be surprised to learn that not a single one of those failures was an online bank. In fact, the last time an online bank failed was back in 2007 when NetBank of Alpharetta, GA was closed. It was acquired by another online bank, ING Direct. Many people would have you think that your money is safer earning 0% at your local bank than 2% at an online bank.

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(Updated 11/17) Welcome to the self-service $25 ING Direct signup promotion center at Bargaineering. I’ve written on numerous occasions about how ING Direct will give you a $25 bonus for opening either a checking or savings account through a referral and depositing $250, so I’ve set up this page to allow readers to help themselves to the referrals (I get $10 for each referral). In the past I asked for you to contact me, then I emailed out the referrals… no more, this is far easier!

Below, you will see a series of links to ING Direct and each one is an account referral link good for one $25 bonus per new customer only. Each link will only work for one new account so if you click the link and it says “We’re sorry, but the referral link within the email you received has expired and is no longer valid. We recommend that you contact the sender and ask them to re-send the referral email. Or click ‘Continue’ to proceed with the application process without the account opening bonus.” then please move onto the next one. As links are used, I’ll clean up the page such that only the good links are left.

If you use an expired link, you will not get the bonus. Clear the cookies from your browser before you try any of the links or they may appear to have “expired” but still be valid.

If you do not deposit $250, you will not get the bonus. If you still want an account, please use this link.

ING Direct Savings Accounts

1. ING Direct $25 Savings New Account Opening Bonus
2. ING Direct $25 Savings New Account Opening Bonus
3. ING Direct $25 Savings New Account Opening Bonus
4. ING Direct $25 Savings New Account Opening Bonus
5. ING Direct $25 Savings New Account Opening Bonus

If you want to get in the queue to have your link posted, you can peruse the Bargaineering Bucks Store.

If you are looking for a high yield savings account to earn more money, you have come to the right place. This page will give you three of my choices for the best online bank along with their rates, a list of comparable banks, and between the two you will find a savings account that will beat your current one.

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. At first I was a little apprehensive – an entirely online bank with no physical branches I could visit? But they were FDIC insured and it’s 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.

Enter in a new class of deposit account – the high yield savings account. It follows all the rules of a regular savings account except the bank running it is cutting costs wherever it can and passing it along to you, the customer, in higher interest rates. So which online banks offer the best high yield savings accounts?

Best High Yield Savings Accounts

Everbank’s 2.51% Bonus Rate

If you’re looking for the best rate you can get from an a high yield savings account, Everbank is the one for you. Right now you get an interest rate of 2.51% for three months, which is certainly among the highest, and the initial deposit requirement is only $1,500. You only earn the bonus rate on the first $50,000 you deposit, anything over earns 1.50%. EverBank, along with every bank on this site, is FDIC insured since 1998 (FDIC Cert. #34775) up to $250,000.

In terms of accolades, they have collected several in their years in the business. Kiplinger’s Personal Finance once named them the “Best Checking Account” because their yields were often 10X that of industry averages while Money Magazine named them a “Best of the Breed.” For five years in a row, Forbes.com named them the “Best of the Web.” This isn’t a bank that will pull a bait and switch, they’ve been here for a while and their reputation speaks for itself.

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!

Best High Yield Savings Accounts Rates

I’ve compiled a list of the best of the best FDIC insured (now up to $250,000 through December 2013) banks below.

* Everbank offers 2.51% promotional rate for the first 3 months, then 1.77% thereafter.

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 lately, you might be surprised to learn that not a single one was an online bank.

My friend asked me the other day whether I thought high yield savings accounts were worth it. He’s an engineer and a numbers guy at heart, so he appreciates the mathematical differences between an online savings account and your standard no-interest checking account. What he wanted to know was whether there were headaches involved in dealing with something that was online-only.

I think that as I’ve gotten older, the amount of headache I’m able to stand has dropped significantly. A few years ago, I’d be willing to stay on the phone for an hour with a Comcast rep arguing down my bill. I’d research purchases for hour, then wring my hands for days, and then research some more before pulling the trigger. Now? With all the other headaches I have, the last thing I want to do is add to the mix!

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Every week I get an email from Ally Bank informing me of how the rates will be changing (Ally Bank rates are adjusted on Fridays) and their rate structure has been confusing me as long as I’ve been getting these emails.

Ally Bank’s Savings & CD Rates

• As of August 28th 2009, their current online savings account interest rate is 1.75% APY.
• As of August 28th 2009, their current 9 month CD rate is 1.55% APY.
• As of August 28th 2009, their current 9 month no-penalty CD rate is 1.85% APY.

Rates are subject to change, here are the current Ally Bank CD rates.

Why Is This Weird?

Typically, your online savings account interest rate should be the lowest of the three. Next would be the 9 month no-penalty CD rate followed by the regular CD rate. You should get a lower interest rate on the account with the most flexibility. Since you withdraw money from a savings account at any time, you should be paid the least amount of interest in that account. Since you can withdraw your money from a no-penalty CD at any time without penalty, it should have a lower interest rate than a regular CD, where you would have to pay a penalty to access your funds.

Ally Bank has had this interest rate irregularity for a while now but recently it’s come back in line.

So What?

If you have money in Ally Bank’s online savings account, you should open a 9 month no-penalty CD immediately and transfer all your funds into that CD. Should the online savings account interest rate ever increase past the no-penalty CD, then you could liquidate the no-penalty CD without penalty. If you need the money, you can liquidate the no-penalty CD.

In fact, the best strategy would be to open up multiple no-penalty CDs so that if you do need the cash you don’t have to close out one big CD. Ally Bank does not have a minimum for CDs. For example, if you have $5,000 to save and you aren’t sure if you need the money. Open up five $1,000 no-penalty CDs. If you need $500, you can just close one of the CDs. If you opened up one single $5,000 CD, then you’d have to liquidate the whole to get access to just $500.

Am I missing something?

How much money do you have sitting in a savings account? $500? $1,000?

Do you have plans for that money? If not, it should be in a certificate of deposit at your bank. If your bank doesn’t offer good CD rates, then you should open a CD with an online bank and take advantage of their better interest rates. If you don’t think you have enough money, you’re wrong. You can open a CD at an online bank with a single dollar.

One dollar.

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In mid-May, GMAC Bank changed its name to Ally Bank. With General Motors in the news every day for something negative, it’s hard to do business when everyone thinks you’re about to go out of business. The funny thing about it all is that GMAC Bank’s parent company, GMAC Financial, hasn’t been a part of General Motors for several years. When you have financial companies in distress and auto companies in distress, a bank that people think is inextricably linked to auto company is in some deep trouble.

So, they changed their name.

But are they a good bank to do business with? Let’s find out.

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A few weeks ago I asked for your opinion of the best high yield savings account and the one thing I learned something very interesting. With interest rates as low as they are, with many banks offering less than 2%, it’s the other services and amenities that dictate which bank you’ll work with.

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This is comprehensive review of the best online banks, specifically those with a high interest savings account and high yield savings accounts available (high interest refers to the interest rate). Given the recent economic uncertainty, interest rates have come down from their earlier highs and so “high yield” is more a relative term than an absolute one. Gone are the days of 5% and 6% APYs, today the best ones are in the 2-3% range. While not incredible, they are certainly better than the 0% your local bank is likely giving you on your savings accounts nowadays. In this post, Everbank, Ally Bank, E*Trade, HSBC Direct and WTDirect are given brief looks to see how strong they are in the current rate environment.

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(Updated 9/1) In the world of banking products, you are always trading off interest rate for flexibility. Typically the higher the interest rate, the less flexible the account. Take CD rates for example, they are often higher than savings accounts and they are less flexible. You decide how long you’re willing to keep your money locked up and then pick a bank that offers the best rate for that term. If you wish to get your money early, you pay penalty. On the other end are checking accounts. Checking accounts have the worst interest rates but offer the most flexibility. You can get your cash whenever you want it, write as many checks as you’d like, and visit your own ATM without penalty. For that flexibility, you earn very little, if any, interest.

Where does that leave money market accounts?

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