If you’re looking to open an online savings account, it’s important to do your research. You want an account with the highest interest rate – around 1 percent – minimal or no fees or balance restrictions, FDIC insurance and a good customer service rating for the accompanying bank. Here are some of the best online savings accounts available.
Best online savings accounts No. 1 – Ally
Ally Bank has a savings account that yields 0.95 percent annually with no minimum balance required. Thus, fees are avoided. Ally’s 24/7 customer service reputation is strong, the website is easy to use. Customers who wish to explore other savings products can also apply for high-yield CDs and IRAs.
Best online savings accounts No. 2 – CIT
A Small Business Administration Preferred Lender that has been in business for a century, CIT offers a 0.90 percent APY on balances under $25,000. Those above hit 1.05 percent. A $100 minimum balance is required, but there are no other associated fees. Customer service is available daily, but hours are set.
Best online savings accounts No. 3 – American Express Personal Savings
Through American Express Bank, FSB, this savings account has an APY of 0.90 percent currently. The bank offers full 24/7 service, and there are no fees or minimums.
Best online savings accounts No. 4 – Discover
Another bank better known for its credit cards, the Discover savings account has a yield of 0.80 percent. A minimum balance of $500 is required to open the account, but after that, no minimum is needed and there are no monthly fees. Service is 24/7 via all common communication methods.
Best online savings accounts No. 5 – EverBank
For serious savers, the EverBank Yield Pledge Money Market has a very high 1.25 percent introductory rate on balances of $50,000 or less. Over the first year, the APY still sits high at 1.01 percent. The entry amount is $1,500, the bank’s website is intuitive and numerous other savings products are available.