Online savings account | High yield savings account
Published 1/15/08 (Modified 5/10/13)
The high yield savings account and money market annual percentage yields (APY) listed below are current (verified as of the date provided). APY interest numbers can change not only after every major interest rate move by the Federal Reserve, but at other times as well. Keep in mind that online savings and money market account rates do fluctuate and check back often to ensure you are getting the highest rate.
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For those who want to know my short list of the best online banks that offer the best yield interest rates for savings and checking accounts, here they are. All of the top online banks I list here provide very competitive online banking features and back their websites up with commendable customer support. Some products below may require minimum balance to earn APY, be sure to check bank website for requirements. The following are all highly recommended by fellow high yield savings and money market account seekers:
- Lending Club - Average net annualized return for Lending Club notes are between 5.49% for grade A notes and 10.40% for C grade notes. Lending Club is definitely a rather impressive high yield interest rate alternative to traditional online banks. Rates as of May 6, 2013.
- Ally Bank - 0.84% APY Rates as of May 6, 2013.
- Dollar Savings Direct - 0.55% APY Rates as of May 6, 2013.
- Capital One Bank - up to 0.50% APY Rates as of May 6, 2013.
- FNBO Direct - 0.85% APY Rates as of May 6, 2013.
- Capital One 360 - 0.75% APY Rates as of May 6, 2013.
- HSBC Advance - 0.10% APY Rates as of May 6, 2013.
- Sallie Mae MMA - 0.90% APY Rates as of May 6, 2013.
Interest Rate Chasers and Choosing A High Yield Savings Account There's an interesting breed of savvy savers called high yield interest rate chasers that are continuously on the hunt for the best interest rates. However, although it is very important, I don't think high interest rates alone should be the sole determining criteria when deciding where to do your banking. Thus you don't need to immediately go nuts and jump ship whenever your bank drops your interest rate by a few decimal points. There are other quality factors worth taking into consideration and evaluating such as - reliability, customer service, website interface ease of use, brand name reputation, availability of brick and mortar branches, and consistent history of offering high rates. Just for the record, the vast majority of my cash is invested in the stock market, but what little cash I have is stashed in my Citibank Ultimate Savings Account. It doesn't offer the highest APY interest rate out there, but Citibank has always offered reliable and satisfactory service, with the added convenience of brick and mortar branches. Of course, with the growth of online banking and the stiff competition among online banks for high yield banking customers, I will likely expand my high interest savings account options very soon.
The online banks listed below are sorted in the order of interest rate currently offered, starting with the highest APY. I've chosen to leave out some regional banks as well as several established institutions like JP Morgan Chase Bank, Wells Fargo, and Bank of America for various reasons. Many of them either offer terrible interest rates for their savings and money market accounts, or their top rates require too high of a minimum account balance to achieve (frequently more than $100,000). Below, I've also provided information such as the minimum initial deposit required to open an account, as well as additional noteworthy information such as whether there are fees or minimum balance requirements. All of the online banks listed below, with the exception of P2P social lending sites, have indicated that they are fully FDIC insured, which means all customer bank accounts are protected against catastrophic bank failure and financial loss up to a fairly substantial amount, backed by the full faith and credit of the United States government. As we should all be well aware at this point in time, due to the near rock solid FDIC insurance coverage that they provide, checking, savings, and certificate of deposit (CD) accounts invested at traditional and high interest online banks are the safest places to put your money during turbulent economic times. At the same time, those looking to diversify their holdings for greater interest rate returns, but still enjoy similar semblances of protection may want to check out a number of savings account alternatives available out there. List Of The Top High Interest Savings and Money Market Accounts. Rates as of May 6, 2013.
Please let me know if there are any other better high interest online banking and savings account deals out there! I'm also interested in keeping abreast of the best CD rates in the market as well.