In response to the popular 10 Reasons to Open an Online Savings Account, one Reddit commenter asked this simple question:
Ok, great. So what's a good online bank?
What a great question. Let's go over 10 of them.
This list is my opinion only, and geared toward people just beginning their savings.
- Amboy Direct
With no minimums, no fees, $1 to open and a 5.25% APY, Amboy is the highest earning online savings account that requires little or no money to get started. - AmTrust Direct
No fees, a 5.30% APY and FDIC-insured, but $1000 minimum to open. However, you don't need to keep the $1000 in to avoid service fees - just to open the account. - E-Loan
The highest APY currently available - 5.50% - but requires a $5000 minimum to open. No fees, no monthly minimums, but if you don't have the $5000, try something else. - HSBC
A 5.05% APY, no fees, no minimums, FDIC-insured and a decent Web interface. One complaint, however, is that money transfers take longer than with other online banks. - Emigrant Direct
Emigrant offers the same APY and conditions as HSBC, but from my experience, the sign-up process is much more difficult. While I've heard that the process has improved, I haven't done it yet. - ING Direct
While ING's APY — currently at 4.40% — lags behind quite a few other options, the opportunity to get $25 free for opening an account ($250 minimum) makes it worthwhile. ING also offers $10 per referral — another great bonus. - grandyielddirect
A 5.25% APY, no minimums, no fees, $1 to open and FDIC insured. - Gloucester County Federal Savings Bank
$100 to open an account that earns a 5.09% APY. No minimums, no fees, but plenty of Jersey. - Citibank
No fees, no minimums and a 5.00% APY. - Capital One
There are no vikings here, but there is a 4.80% APY, FDIC-insured savings account. $1 to open, with no minimums and no fees.
(data pulled from BankRate.com)
Want to learn more about any of these online savings accounts? Join in the discussion at Online Savings Forum.
