On-Line Savings Account Interest Rates

I am a big fan of the on-line savings accounts I hold.

I want to make it clear that these accounts are held with on-line banks.  There are several LARGE banks that have on-line banking, but they pay VERY LOW interest.

Here are some of the reasons I like on-line banks so much.

  • Excellent interest rates.  Their interest rates are usually equal to 30-month CD rates, but you do not lose the liquidity of your money.  This is excellent compared to my large bank that I use for bill paying which is currently paying nearly 0% interest AND has a minimum balance of $300 or else I am subjected to a $3/month “monthly maintenance fee”.
  • No fees.  No minimum balance fees.  No on-line banking fees.
  • FDIC-insured.  I like having my deposits backed by the FDIC.
  • Excellent user-interfaces.  They are both very user-friendly and intuitive.  I am a simple guy, and I like it when my banking is that way too.
  • Security.  Both banks have unique log-in procedures that ensure that I am who I say I am.

  Click here to start saving with ING DIRECT!

There are other good on-line savings accounts out there too, but I do not have accounts them so I can not adequately say how good they are.

Here are the names of on-line savings accounts that I have heard good things about.

What other banks out there have excellent savings rates AND excellent customer service?

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  1. David Nanney on September 12, 2008 at 3:07 am

    GMAC Bank and E-Trade are also good. To your point about ING, I think they are still offering the $25 bonus to open an account.

  2. chris on September 12, 2008 at 7:37 am

    I would for now stay away from Washington Mutual as they seem to be having financial troubles. Even though they are FDIC protected, it could be possible that funds could be tied up until a mess is untangled if for some reason they fail.

    Link to google news search with stories on their problems.


  3. Bill G on September 12, 2008 at 3:43 pm

    Joe – why do you use two accounts? I want to put money into one, would you recommend one over the other?

  4. erika chapman on September 12, 2008 at 6:59 pm

    I am one of Michael Brown’s Florence crew. I started following your blog a couple of months ago and am working on your book. I have been using some of your online tools for budgeting but I was wondering when/if you might come to Florence for a conference.

    We would love to have you and sure could use all that you offer. Thank you for your blog, it really helps. I know Florence won’t launch in the immediate future but it would be awesome for the core team to be able to use your teaching and resources as we work toward getting Newspring off the ground in our city.

  5. Tapan@inquisitiveaboutfinance on September 13, 2008 at 8:47 pm

    capital one is one such bank. but how many bank accounts shud one maintain?

  6. Justin on September 15, 2008 at 7:08 am

    I have found Capital One to be very easy to use and easy to transfer funds to. Some people do not like them because they’ve been a slave to Capital One(via the dreaded credit card) in the past.

    The rates have been pretty competitive with ING and HSBC, and Capital One has a good rating as far as stability.

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