Are there still any places left for your short term savings or emergency funds? The interest rates these days are nothing to be thrilled about, but if you’re currently sitting on yields that are under 1%, then it may be worth it to check around for savings and checking accounts that can actually give you something better. Unfortunately, right now, there is a shortage of safe places to put our money in, which will offer you great returns; but if you turn to internet banking, there may be a few options worth considering.
Top Online Savings Accounts At Internet Banks
Here’s a quick list of savings products from a few online banks that I like. The products range from money market accounts to certificates of deposit, checking accounts and high yield savings accounts. Many of these accounts are free, no fee, and require a low or no minimum balance.
| Online Bank |
Savings Product |
Interest Rate |
Min. Balance |
| EverBank | Yield Pledge Money Market Account | 2.25% | $1,500 |
| EverBank | FreeNet Checking Account | 1.02% to 1.46% | $1,500 |
| EverBank | Yield Pledge CD | 0.75% to 3.39% | $1,500 |
| Sallie Mae | Sallie Mae Savings Account | 1.30% | $0 |
| FNBO Direct | Online Savings Account | 1.10% | $1 |
| Ally Bank | Online Savings Account | 1.25% | $0 |
| Ally Bank | Classic High Yield CD | .74% to 2.74% | $0 |
| Ally Bank | No Penalty CD | 1.32% | $0 |
| Ally Bank | Interest Checking | 0.50% to 1.05% | $0 |
| HSBC Advance | Online Savings Account | 1.10% | $1 |
| HSBC Advance | Online Payment Account | 0.85% | $1 |
| HSBC Advance | Online CD | .10% to 1.70% | $10 |
| ING Direct | Orange Savings Account | 1.10% | $1 |
| ING Direct | Electric Orange Checking Account | .25% to 1.25% | $1 |
| ING Direct | Business Savings Account | 0.95% | $0 |
| ING Direct | Orange CD | 0.75% to 1.25% | $0 |
| WT Direct | Savings Account | 1.21% | $1 |
Online Savings Accounts At Other Financial Institutions
If you’re looking for other savings options beyond those offered by online banks or their brick and mortar counterparts, then you may be surprised to find that you can also open such accounts at some online stock brokers like Scottrade and ETrade, or at many mutual fund companies. For example, many brokerages will have a whole slew of financial funds that you’d be able to select from to build your portfolio, but will also have a variety of sweep cash accounts, which can typically be linked to your brokerage accounts.
There are also some other folks who have decided to join a credit union instead, which have traditionally been a great place to house one’s savings. I’ve heard some great things about credit unions, which are pretty much described as non-profit banks. They don’t have any shareholders and have members instead. If you hate bank fees, then you’ll like credit unions, since they limit the fees they impose upon their members.
So somewhere among the many online banks, brick and mortar banks, brokerages, mutual fund companies, credit unions and thrifts that exist, there’s probably something here that would be a good fit for your savings. The challenge is to find the financial institution that you hope to build a long term relationship with. For many savers and investors, parking their money at a variety of these institutions makes sense, particularly for diversification purposes.
The EverBank one looked tempting — until I read that the 2.51 % is only for the first three months. People really have to read the fine print for these offers.