PT Money

by PT |  Print |

Today I thought I’d share some mini-reviews of one of my favorite financial products: the high yield online savings accounts. There are many of these accounts now available across the web. All contain different features, both positive and negative. But most, if not all, are FDIC insured, contain no fees, and pay an interest rate significantly better than traditional savings accounts. You should definitely find one that’s right for you and get started saving. And don’t just consider this list. These are just some of my favorites. For a side by side comparison, see my list of top high-yield savings accounts or the chart below.

FNBO Direct Savings- FNBO Direct is a product of the very old and stable First National Bank of Omaha. That’s where Warren Buffet lives. That’s got to be a good sign right? Anyway, they offer a nice, FDIC-insured savings account with a leading annual percentage yield (APY). There is no minimum to open a savings account. They also have a bill pay (checking) account, certificates of deposit (CDs), ATM card, credit card, and now a debit card. Their website is very user friendly, but maybe not as easy to maneuver as others. See my full review of FNBO Direct.

WT|Direct Savings – WT|Direct is a product of the Wilmington Trust Corporation. They promise a very competitive APY for the first 60 days of opening the account and if you open the account with at least $10,000. This rate has historically been one of the stronger rates out there. If you don’t have the 10K to get the good rate, the account doesn’t pay much better than a regular savings account. Still, you might want to check them out for the 60 days. The customer service is reported to be excellent. They are FDIC insured and charge no fees.

HSBC Direct Savings – HSBC Direct is a product of the massive global banking leader HSBC. They were voted “best of the breed” by Money magazine in 2007. They are very similar to the other major players in the online savings world. No fees or minimums, historically competitive APY, and access to a variety of related financial products.

ING DIRECT Orange Savings- ING DIRECT is, in my opinion, the reigning leader in online savings because of their great website, excellent customer service, and multitude of other financial products. They are owned by ING Group, based in the Netherlands. You mean you couldn’t tell they were Dutch based on that bold orange? They offer a great savings account, a $25 bonusto get started, electric orange checking account, as well as debit cards to access your money. Like others, there is no minimum to open an account and they extend their services into CDs. They also have mortgages, life insurance, and low-cost investing through their Sharebuilder product. They are also FDIC insured. See my full review of ING DIRECT.

E*Trade Complete Savings – The E*Trade Complete Savings Account is a product of the very notable E*Trade, the online, low-entry broker. I’m not exactly sure, but I suspect E*Trade opened this account because they got tired of all the traders moving their cash balances to high-interest savings account when not in the market. E*Trade simply created a local alternative. And they didn’t do a bad job at it. The Complete account offers a decent APY rate historically, with no minimums and of course, no fees. They are FDIC insured as well. Incidentally, they offer mortgages, checking, and CDs. Really a full range of products with a nice basic account. If you use E*Trade brokerage services, this is a great place to park your cash.

Virtual Bank eMoney Market – Virtual Bank is a division of Lydian Trust Company. They have a nice virtual savings account with no minimums or fees. The account is FDIC insured. The rate isn’t the best, but they do offer a refer a friend program that will pay you $20 for every friend you refer and will give them $20 to get started. They also have an eMoney Market account. I have one of these. The only difference that I can tell between this account and the virtual savings account is the $100 entry fee and the slightly higher APY. The virtual account is actually promoted as a good account for children. Whereas the eMoney Market account would be comparable to other high-interest online savings accounts.

Capital One Online Savings – Capital One’s Direct Banking division is the parent to this account. As you can imagine there are many banking options under Capital One’s umbrella, along with credit cards and other loans. This savings account is a nice one. It’s got a great rate as long as you have over $10K deposited. No fees and FDIC insured. Capital One, as you know, has a traditional bank as well. Therefore, if you go with the Direct Bank’s Online Savings then you will have an easy time making deposits and accessing your money if you sign up with a traditional bank too. As mentioned earlier, Capital One is also in the business of loans and credit cards. You’ve seen the annoying commercials.

Schwab Bank Investor Savings – Very similar to the other broker-owned saving account above, Charles Schwab is in the business of investments. Schwab obviously needs no introduction. They, like the other broker above, don’t want you to be tempted to keep your cash outside of their system. They get control of all your money by creating this account. Not that it’s a bad account though. It’s actually pretty great. No fees, no minimums, and it’s of course FDIC insured. The APY is very competitive right now. If you already have your investments with Schwab, it’s a no-brainer to stick with them and keep your cash earning money here.

EmigrantDirect American Dream Savings – EmigrantDirect is an online banking division of Emigrant Bank. They are one of the longest running online banks out there. Emigrant Bank itself is very established as well. They are out of New York. The American Dream savings account is excellent. No fees, no minimums, and FDIC insured. Transfers and APY are very similar to the other big players in this area. They also have some nice CD option available. This is definitely one account I’ve wanted to open for some time. I guess I just didn’t since they aren’t that much different from the one’s I have.

Dollar Savings Direct – Dollar Savings Direct is basically the twin of EmigrantDirect. Both are owned by Emigrant Bank. The story (thanks to Jim from Bargaineering) is that the Dollar Savings Direct account is some sort of English branded offshoot of the Spanish version of the Emigrant Direct account. Are you confused yet? Here’s what you need to know: the only differences between the accounts is that the Dollar Savings Direct account required a $1000 minimum and pays a slightly better rate. This account has no fees and is FDIC insured.

And now, if you’d like to compare the accounts side-by-side, here’s the table I created to help you do so:

Related posts:

1. Top High-Yield Savings Accounts
2. Ally Bank Review: High Interest Online Savings Account and More
3. FNBO Direct Review: High Interest Online Savings Account
4. 10 Things That Bring Success in Personal Finance: #5 Put Your Savings in a High-Interest Savings Account
5. Update: More $25 ING DIRECT Savings Account Bonuses!