Online savings account | High yield savings account

Published 1/15/08 (Modified 7/14/14)
By MoneyBlueBook

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*:

  1. Ally Bank Online Savings Account - for 0.87% APY Rates as of 6/04/2014.
  2. Capital One 360  360 Savings - 0.75% APY Rates as of 6/04/2014.
  3. FNBO Direct  Online Savings - 0.75% APY Rates as of 7/14/2014.
  4. Mutual of Omaha Bank Online Money Market - 0.85% APY on balances between $5,000 - $500,000 and Rates as of 6/04/2014
  5. Capital One Bank Smart Savings - up to 0.85% APY Rates as of 6/04/2014.
  6. Lending Club - Projected Average net annualized returns for Lending Club notes are between 4.77% for grade A notes and 8.24% for C grade notes. Lending Club is definitely a rather impressive high yield interest rate alternative to traditional online banks. However note your funds are not federally insured. Rates as of 6/04/2014.
  7. Sallie Mae Money Market Account - 0.90% APY Rates as of 6/04/2014.
  8. Dollar Savings Direct Dollar Savings Account - 0.55% APY Rates as of 6/04/2014.

*These rates are subject to change at any time by the respective banks. Check the banks website for current rates, fees, terms and additional information before applying.

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 6/04/2014, unless otherwise noted.

Bank Name APY Rate* Min. Balance Notes and Review
Lending Club TBD $1 Lending Club Review
EverBank-Money Market 0.61%* $1,500 EverBank Review
Ally Bank-Online Savings 0.87% $1 as of 6/04/2014
Dollar Savings Direct 0.55% $1,000 Dollar Savings Direct
Savings Square
0.55% $200 Review pending
iGO Banking 0.25% $1 iGOsavings
American Express 0.80% $1 High Yield Savings
Capital One Bank up to 0.85% $25 Smart Savings
FNBO Direct-Online Savings 0.75% $1 as of 7/14/2014
HSBC Advance 0.01%* $1 HSBC Advance Review
Capital One 360 0.75% $1 360 Savings
Bank of America 0.03%-0.03% $25 Personal Money Market - Rate collected within: NY
Bank of Internet USA
0.75% $100 Money Market Savings Account
Citibank Savings Plus 0.05%-0.15% $1 Rate collected within: NY
MyBankingDirect
0.80% $5,000 Money Market Account
Sallie Mae MMA
0.90% $1 Money Market Account

*Additional Notes:

These rates are subject to change at any time by the respective banks. Check the banks website for current rates, fees, terms and additional information before applying.

*Everbank high yield money market account. For first time account holders, new account bonus rate for Yield Pledge Money Market Account for account balances up to $50,000 – 1.40% for the first six months, first year APY currently 1.01% and an ongoing APY currently at 0.61%.

*HSBC Advance Online Savings Account APY for balances $0.01-$9,999.99

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.

Disclaimer: Discover is a paid advertiser of this site.
Reasonable efforts are made to maintain accurate information. See the Discover online credit card application for full terms and conditions on offers and rewards.

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56 Responses to “High Yield Savings Account | High Interest Savings Account | Savings Account Rates” 

  1. worldtraveller says:

    1.99% May 07, 2009.

  2. Diane says:

    Shorebank offers high yield savings accounts. Currently 2.05% APY

  3. Perch says:

    High yield savings account rates are not that great these days. Has anyone tried out these new high yield CHECKING account rates? They seem to be much higher than even savings account, money market accounts, or cd rates. Only downside is that they frequently have maximum caps...like $10,000-$50,000...and they have high debit card usage requirements (like 5-10 or so transactions a month). I use my reward credit cards for all purchases so this debit card requirement is a bit hard for me to deal with.

    But this just means you really can't use the high interest checking accounts as your savings account equivalents for the long haul. Plus you never know where these interest rates are headed and they are likely to fluctuate or disappear as promotions are pulled.

  4. AllyBank aka GMAC Online Bank says:

    Ally Bank is the new bank in town. Actually Ally Bank is the bank formerly known as GMAC Financial. GMAC Bank is revamping its old image into Ally Bank to attract new customers and shed its old crippled Detroit auto maker image. I guess they are trying to send the message that they are your ally or something like that.

    But regardless, their high yield savings account rates are pretty good and so are their CD rates. Their best CD rates are pretty high compared to competing banks. Not only do they have classic CDs, they also have these new no penalty CD accounts that allow you to withdraw your money and put it anywhere without a fee! Right now the CDs with Ally are 2.50% APY. Check the CD and savings account rates out

  5. Sarah says:

    Clear Sky Accounts looks pretty decent. Clear Sky bank accounts are offered by Chesapeake Bank. Right now they offer something like 2.05% APY for all high yield savings accounts. Even their high yield checking account offered the high 2.05% APY interest deal for balances in excess of $25,000. According to the website, Clear Sky Accounts are totally paperless and completely online, and fully FDIC insured.

  6. Chris says:

    Ally Bank is def worth a good review. It's one of the, if not the best bank right now in the market offering the best rates. They've been advertising hard on TV and on the web lately.

    1 year classic CD's are 2.80%,
    Online savings accounts are 2.25%,
    and free checking money market accounts are 1.90 % APY.

    Of course, this is all assuming that Ally Bank, despite the name change, has overcome the problems of its former GMAC Bank self....let's home it's not another repeat of Washington Mutual, an online bank that pushed hard in the marketing arena but ultimately failed and went bankrupt (eventually getting bought out by Chase Bank).

  7. Marly says:

    Ally Bank is my new online bank. I just transferred funds from my defunct Countrywide Bank account (now run by Bank of America) to Ally Bank. Opened a high yield savings account. Ally's money market account looks good but the rates weren't as high and I don't really need checking writing privs. Good savings account features with lots of CD rate offers to pick from. Let's hope this bank survives the subprime mortgage mess!

  8. Kirk says:

    Ok I just came across while browsing BankRate that there are numerous high yield savings account banks that i've never heard of before. Places like Discover Bank, AIG Bank, E-Loan Bank, and heck even Met Life Bank (with Snoopy). I had no idea Discover Cards even had its own bank. And AIG Bank?? Aren't they bankrupt already. Are these online banks reputable and stable? Not sure they are worth the risk since they don't even offer the best interest rates. Should unstable banks with tarnish brands be offering the highest rates to attract new customers?

  9. DC Aristocrat says:

    I live in the Washington DC area where Chevy Chase Bank used to dominate the region with its huge ATM and retail banking presence. Now that they've been bought out by Capital One Bank, Cap 1's now got the upper hand in terms of market share in the DC area.

    In my review of Capital One, the company's existing banking features are more in depth than Chevy Chase but I preferred Chevy Chase's community and localized customer service reputation. Hopefully, the management at Capital One will leave Chevy Chase's pluses intact but port over their high online rate accounts. Chevy Chase Bank was notoriously terrible in terms of its rate offerings. .25% APY for a savings account...are you kidding me?

    Capital One's high yield savings accounts and money markets are decent, albeit a bit shabbier than others in the interest yield department. Capital One CD rates need to see some improvement as well

  10. punkguy0017 says:

    Why has ING gone down from 1.50 % to 1.40 %?

  11. Hilbert K. Presser says:

    ShoreBank Direct High-Yield Savings Account is now offering 2.15% APY* (2.13% Interest Rate), effective Tuesday, July 28, 2009. ShoreBank's ABA/Routing Number is 071004226.

  12. frank says:

    I don't understand Bankrate.com's ratings. When you are looking for the highest interest savings accounts they exclude some of the bettter paying banks. Why is that? Are they really honest about their ratings or bais? depending on what? I noticed for instance that they show other banks as top interest payers on online savings, while excluding Shorebank who ia paying a higher interest. Why is that?

  13. allison Scott says:

    Yoo hoo, VentureBank has been shut down -- just click on their website.

  14. ds says:

    All balances on Lending Club are NOT FDIC insured, nor are they insured by Lending Club. If 100% of your loans default, you are guaranteed to lose 100% of your balance. I'm not sure why one would compare the Lending Club rate with FDIC insured bank rates. Apples to oranges.

  15. Charles says:

    I was rather shocked to see Lending Club in the list of banks above. ds points out that Lending Club is NOT FDIC insured. If the loans you make default, you lose the money. BUT, there's another problem. If Lending Club goes bankrupt, those who owe money still owe it to Lending Club, but you become a creditor at the back of the list. In other words, if LC fails, the loans you made could be completely paid in full and you still not get any of the money. And, if you read the details, you'll quickly find out that LC is losing money at a rapid rate. I would not touch LC with a ten foot pole.

    It should be noted that clicking in Lending Club on this page or the review page takes you to their site with a code so they know you came from here. I suspect they are getting paid for referrals.

  16. JD Law says:

    Charles, you sound like a disgruntled Lending Club investor or someone who runs Prosper or one of LC's other competing companies.

    I've had a Lending Club account for a year now and invest mostly in the high grade loan offers. So far I've had good success with no defaults. Unless you choose to invest in super risky loans, you are generally pretty safe in my opinion. It's the same way with stock market investing. You can shoot for the sky and invest in penny stocks and hope to double or triple your investment in days, but you are risking everything. Likewise, you can stick with safer investments and earn a steady rate of return in time. That's my approach with LC.

    My LC rate of return averages around 7-7% APY based on my rough estimates. It's not going to blow anyone's socks off, but compared to online banks offering 1-2% APY these days, it's quite impressive. You're right its not FDIC insured the way banks are...but I think that's why you can get higher rates with LC...it's really a tradeoff.

  17. JD Law (2) says:

    JD, you completely missed Charles's point. He was not talking about the risk of a particular loan or borrower. Rather he was talking about the structural risk of not being FDIC insured.

  18. Tyler says:

    Flux Holdings is offering 5% APY. No minimums. Must be a US resident though.

  19. bigdaddyrichard says:

    Lending Club appears to be a reliable high yield investment alternative. But I guess I need do more research on this.

  20. KIN says:

    I love the fact that Flux Holdings has a stipulation that you must be a US resident. Now if we could just everyone else here in the US to committ we may have a few less people takeing advantage of our social security and medical expense. We will be broke before long because of it so we all best figure out where and how to invest our money to retire on. Tell me where to put my money.

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