You Should Open an Online Savings Account. Here's Why.

02.11.07 | Online Savings Accounts | 0 Comments | by junger

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It's a great time to be an online saver.

The number of online savings accounts is through the roof, and banks big and small are getting into the act.

With a 6.00% promotional rate from HSBC topping relative newcomer E-Loan's 5.25% APY, online savings accounts are beginning to compete to get customers.

As the folks at LendingTree say, when banks compete — you win.

This BankRate article takes a look at the competition, claiming the market is raking in customers and banks are having to do things to differentiate themselves.

Online, interest-paying checking accounts appear to be the next frontier in the battle to get and keep customers. …

In fact, the slim product lines being offered by many online institutions could be beefed up considerably as banks try to keep customers from bolting to the next bank that's raising the bar on high-yield accounts.

Just a couple of days before this article was posted, MyMoneyBlog asked if online savings accounts are becoming a commodity.

As online savings accounts get more and more popular, I get the feeling that they are becoming a mature product, almost a commodity. Sure, there will still be the occasional promotions, but for the most part all of the banks now are hovering around the same interest rate (currently ~5% APY). I believe that the banks simply don

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