We all work hard for our money. We all also would like to see our money work for us. This leads to a few important questions: What is the best online bank account? Where can I do the best online banking? Many long time readers of Studenomics have asked that I try to squeeze in a few investing and entrepreneurship posts here and there. Since I’m really interested in trying to grow the little savings that I have, I decided to do some research on the best online banks and the products they have to offer us.
Online bank accounts:
The following are some of the most popular high yield savings account choices that we have at online banks. If you want the best return on your money, while it remains safe, then consider the following options:
Everbank
The EverBank Yield Pledge Money Market Account yields a 2.51% APY for the first 3 months once you open a new account. After this, you will earn an APY of 1.51% in your first year. This is for the more serious investors because an initial deposit of $1,500 is required. The plus side is that you won’t have to pay any fees.
ING Direct
The Electric Orange Account is presently yielding .25% — 1.45%. From all of the best online banks, ING is probably the most useful for new investors (in my opinion of course). There is no minimum and no account fees. How can you go wrong? Well the interest rates flat out suck. Besides that you really can’t go wrong. Check here to sign up or you can check out my ING Direct Review.
Ally Bank
The Ally Bank Online Savings Account is currently yielding an APY of 1.29%. Ally Bank is a fairly new online bank account with no minimum balance, no monthly fees, and daily compounding. Click here if you want to learn more.
WT Direct
The WTDirect Savings Account will now give you a 1.26% APY. Here’s the deal with this savings account: The first 60 days you’re guaranteed to earn 1.26%. Once the 60 days are up, you’ll have to maintain a balance of 10 grand to keep the 1.26% rate. If you don’t maintain the balance then your APY will be decreased to 0.50%. Once again, there are no fees or hidden costs. Click here to open an account.
These are the top online bank accounts from the research that I’ve been doing for the past few years. Now it’s time to look into what it takes to become the best online bank account:
1. Safe & reliable.
All of the best online bank accounts mentioned above are FDIC insured. I must admit that I’ve dabbled in other investments, but high yield online savings accounts have provided me with the safest returns. If you don’t want to be taking too many chances after the economic downturn of late-2008 then you should hold your money where it’s safe.
2. High interest rates.
I know that rates have dropped in the past few years. There’s nothing we can do about this. Well, that’s unless we want to take on some risk and invest in real estate or the stock market. The interest rates offered with online bank accounts surely defeat a standard checking account or keeping the money under your pillow.
3. Customer service.
Customer service? You know the process of answering the phone right away and answering all of my questions with respect and courtesy. That’s all I ask for from my customer service. Unfortunately, I don’t have much else to add to the customer service bit because I’ve been fortunate enough to not have to deal with any customer service reps. when it comes to online bank accounts.
Where do you think you can find the best online banking? What criteria do you use to rate online savings accounts?
(Note: I will be discussing entrepreneurship, banking, and investing, more as time goes on. Feel free to request a topic similar to how your peers have.)
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It’s a little different, but Smarty Pig is worth looking into as a holding account. It’s at 2% right now, is FDIC insured, and is easy to use. You can’t make small withdrawals, but it’s working great for our main emergency fund.
I bank with USAA (usaa.com). No monthly service fees; $25 to open an account; refunded ATM fees. I love the fact that USAA offers a mobile app to deposit checks via your phone.