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Online Savings & Money Market Account Rates 2022

Highest Online Bank Rates for Savings And Money Market Accounts - November 30, 2022

Savings Account National Average Rate: 0.10% ?

The Powell Fed has completed its November meeting with its sixth rate hike of 2022, bringing the Fed Funds rate to almost 4% for the first time in a generation.   The Fed still isn’t finished with rate hikes as it moves late to get a handle on soaring inflation that has now permeated the US economy and shows no signs of moderating. (...read more in the Recent Articles section below the rate table).

ONLINE BANKS APY? MIN?
Sponsored Advertiser Disclosure

Grow your money with a high yielding savings account. Member FDIC.

Last change: ↑0.40% on November 11.
External transfers are limited to $5,000/day and are not free.

| Oct 11, 2022

Well intended, but not exactly brilliant. Feels too much like a mom and pop operation and not a place where I want my cash held in an evolving economy. I will move along shortly. Read More

Last change: ↑0.15% on November 15.
External transfers are limited to $30,000 per week.

| Sep 24, 2022

Was going to open a savings acct ----- after reading the reviews, NO WAY. Don't make it difficult for customers, (or potential customers), to do business with you. Read More

Last change: ↑0.67% on November 9.
Bank reports that this rate is for new customers only.

| Oct 29, 2022

Caveat Emptor! Like others, attracted to their competitive rates. Moved 125K into their MMA from my credit union. They have a system that somehow displays account information from other institutions to be ... Read More

Last change: ↑0.67% on November 3.
Bank does not offer ACH processing. Customers need to initiate ACH from outside bank.

| Aug 3, 2022

No ACH processing, what is this the 1960's? No customer service team, just one person.

Last change: ↑0.98% on November 16.

| Mar 19, 2022

Problem with ties to puppy mills. I closed a cct. https://www.americanbanker.com/news/tab-bank-dragged-into-seedy-world-of-puppy-mill-loans-by-fintech-partner

Last change: ↑0.35% on November 18.

| May 26, 2020

BEWARE! Very easy to open MM savings account which I did with $5k ACH transfer (minimum for high yield rate). Fortunately I discovered that ACH withdrawals are limited to $5K daily limit and perhaps $10K ...

Last change: ↑0.55% on November 2.

| Oct 30, 2022

very easy process, no probs at all Read More

Last change: ↑0.50% on November 8.

| Oct 17, 2022

I opened the account without reading the reviews and I am glad I did. No troubles and they just raised their rate so it is on top of this list!

Last change: ↑0.10% on November 25.
Online transfers limited to $1,500 per day and $10,000 per month.

| Nov 2, 2022

They have a limit of no more than 2000.00 a day transferred in and no more than 10,000.00 per month transferred in. Their customeer service is not very knowledgeable of this online account either. I wanted... Read More

Last change: ↑0.39% on October 27.

| Oct 17, 2022

This is my third time around the block with Dollar and Emigrant. There is always a time to come and a time to go. It is an easy bank to work with and as long as the rate is competitive, it is fine. So, ... Read More

Last change: ↑0.10% on October 28.
Outbound transfers limited to $10,000/day or less.

| Oct 30, 2022

Closed the account after one year. These folks are killing lots of trees to send out cross-selling info on credit cards, home equities, personal loans. It seems like the savings is just to bring people in ... Read More

Last change: ↑1.00% on October 1.
Rate requires download of bank app and recording of over 12,500 average daily steps (or 10,000 if over age of 65).

| Oct 11, 2022

Glad to have found this one and thanks to bestcashcow for not hiding the best rates like bankrate does Read More

Last change: ↑0.40% on November 3.

| Aug 20, 2022

Great experience with Ivy Bank! They are constantly updating their rate to stay competitive. Since I've opened my account they've increased my rate 4 or 5 times. It's easy to apply and open and have had no... Read More

Rate available for new accounts only.

| Apr 10, 2021

I opened an account a couple of years ago and had a dreadful experience. I saw two weeks ago that the rate was better than at Citizens so I closed that account for this one. I cannot access my money now or... Read More

Last change: ↑0.24% on November 11.

| Oct 3, 2022

The rate is not always competitive (but I am checking now on October 3, 2022 and it is above Ally, Barclays, Marcus, Synchrony). I still give CIBC an A+. It is all about transfers. Theirs are easy, reliabl... Read More

Last change: ↑0.13% on November 9.

| Nov 12, 2022

I was shopping for deposit rates in August, and NerdWallet, a site I had previously trusted, had it on their list. I was unaware they took deposits. They are the only bank that ever duplicated a transactio...

Last change: ↑0.55% on November 8.

| Sep 20, 2022

Prime Alliance Bank has a single branch (outside Salt Lake City) and does an excellent job with distance banking (we are based in Washington state). It stands out in several ways: (1) Interfacing with the...

Last change: ↑0.25% on November 16.
External transfers may take up to 3 business days and may be limited to $25,000/day.

| Jun 13, 2022

3 days for an ach is not market when most banks on this list do it instantly. even frigging rising bank. customer service is beyond dreadful. Read More

Last change: ↑0.50% on November 7.

| Jul 29, 2022

Been with Etrade-Morgan Stanley for decades. Always fantastic service & can move funds online in a second from savings to brokerage for trading. Very competitive on saving rates. Very happy customer in ... Read More

Bank reports that this rate is for new customers only.

| Jun 20, 2018

Their website says the offer is going away tomorrow at 9AM EST. Hurry! Read More

Last change: ↑0.25% on November 4.

| Jun 2, 2022

I've been a customer since CIT emerged from the financial crisis as a real competitor in this space (14 years or so). Zero complaints about anything over this time ... until today. Now they are offering a... Read More

ConnectionPlus Savings. New customers only, but existing customers may transfer assets online to new account.

| Nov 30, 2022

Hey. I visited your site and just wanted to let you know that your site is not adapted for people with disabilities. According to the law, every website must be accessible to people with disabilities a...

Last change: ↑0.50% on November 4.

| Sep 11, 2022

If I could leave a -10 star review I would do it in a. This is a classic example of a ridiculously unmanaged government program with zero oversight and zero sensibility. In April 2022 I applied for a st...

Last change: ↑0.50% on November 4.
External outbound transfers are limited to $25,000 per day.

| Aug 26, 2022

Too slow to raise rates. Read More

Grow your money with a high yielding savings account. Member FDIC.

| Nov 12, 2020

Rate has remained competitive and they are easy to work with.

Last change: ↑0.60% on November 4.

| May 2, 2022

Barclays is the worst. Transfer speeds even worse than Synchrony now. Service is worse than anything. Save yourself the trouble of getting sucked into rates that are sometimes competitive and choose anythi...

Last change: ↑0.25% on November 18.

| Aug 31, 2022

never had a problem moving money in/out. After trying a couple banks with higher rates but less service will be moving my money back here. Read More

Last change: ↑0.25% on November 22.

| Aug 16, 2022

ally is still the gold standard in online banking, but the rate needs to get more competitive and the wait to speak to someone on the phone is just ridiculous. Read More

Last change: ↑0.65% on October 28.

| Nov 1, 2022

I never in my 80 years of life seen a company that treat their customers like shit and still expect them to come back. I have always paid my bills monthly without hesitation, in the past I have had so many... Read More

| Mar 14, 2018

Poor service. Condescending attitude. Savings application denied without giving reason (Equifax file had a freeze because of hacking history) and not advising customer of need to unfreeze credit file for a... Read More

Last change: ↑0.15% on October 28.

| Aug 6, 2022

The idea that they aren't competing is wrong. They'll give you 1% more on your savings if you run around promoting their brand and get a friend to sign up. Great marketing scheme actually, since those so i... Read More

Last change: ↑0.00% on November 30.

| Sep 1, 2022

updated review - The bank managed to finally provide the requested document listing the beneficiary after a number of calls. So will add a few stars. The website still needs some work to be more descript... Read More

New money only.

| Sep 6, 2019

Went to bank yesterday this is not a good rate. Needs to be updated. Read More

| Apr 22, 2015

Hello, I am interested in a line of credit against my home. I have a high interest credit card that I want to move to this credit. I have a wells fargo mortgage which is only a few years old which I do no...

| Jun 26, 2022

ACH transfers are not allowed. Called and was told that I had to set up wire transfers (and pay fees) or I could come in to the bank and get a bank check.

| Jul 15, 2021

I finally closed my account. Was great back in the day as everbank but now it is a joke in every way. Read More

| Jul 1, 2022

not really an onllne bank. compare this interface that gives you no information with that of any other bank (I cannot even confirm the rate). cannot switch in and out of cds or np cds. just not an online b... Read More

| Nov 11, 2022

I have been with PenFed for a number of years, and have gotten good products. Employees have been helpful. However, beware of titling for accounts with trusts. You will not be able to distinguish betw...

| Dec 31, 2020

I’ve filed a complaint with the FDIC. This bank keeps rearranging my transactions, even if they’ve posted and are not pending. They also will deny a transaction and charge a non sufficient funds fee ... Read More

| Nov 2, 2020

Got the account opened after weeks and finally got it funded and then they dropped the rate the next day and it is no longer competitive.

| Oct 27, 2021

I joined this bank and went through the process of applying for a HELOC. Everything seemed to be going well with only the paperwork needing to be signed and when I contacted them about having a POA and the...

| Jun 12, 2022

I have a small question Read More

| Sep 17, 2020

It is a complete game between MySavings, DollarSavings and Emigrant. Some days one has a competitive rate, the next day the rate on that one has dropped to zero and it is one of the other brands that has... Read More

| Jul 17, 2021

I've been with this bank for 6 months and have not had any problems. Bill pay works good. The 24 month investing CD is another vechile I use. Rates are above average considering the national rate. I'd reco... Read More

Last change: ↑0.00% on November 30.

| Mar 25, 2020

I was told on the phone by a bank rep that my present money market acct interest rate would continue at 2.25% until June 30, 2020 and would be FDIC covered up to $250,000. Please verify if this is true???...

| Jun 12, 2022

I have a small question Read More

| May 21, 2021

avoid this Read More

| Jun 1, 2021

Update: STAY AWAY FROM THIS BANK! They have no clue how to run an online bank. This bank is not ready for prime time. Nothing but problems. Customer service is dismal at best.

Seattle Bank

0.85%

$0

Learn More

Last change: ↑0.00% on November 30.

| Nov 20, 2022

I recently filed a complaint against VIO Bank's parent, Mid First Bank, with the Comptroller of Currency and the Dept. of Justice, Atty. General of Calif. The essence of my complaint was that VIO Bank did ... Read More

| Mar 30, 2021

These guys are the best local bank. Very responsive.

| Jul 28, 2020

Dropped rates again with restrictive transfer limits and poor service. Better rates and liquidity elsewhere. Beware!!! Read More

| Apr 30, 2019

No issues. I feel confident using them. Read More

| Oct 11, 2020

You probably thought - as did I - that you were looking at a site that belongs to and was the responsibility of Gateway First. After all it includes their headings, selected financial statements, many pag...

Zions Bank

0.45%

$1,000

Learn More

Amboy Direct

0.45%

$30,000

Learn More

Norwood Bank

0.45%

$100,000

Learn More

| Aug 10, 2019

I did not appreciate getting pulled into the 2.53% offer on $100k only to have the rate lowered by the time I finally got the money in.

Freedom Bank

0.40%

$0

Learn More

Not available to residents of states with PNC branch locations.

| Oct 25, 2020

Online Savings rate was dropped to 0.65% a week ago from 0.80% and BestCashCow still showing former rate. Read More

| Jun 10, 2022

This bank hasn't raised their rates! Maybe I was sleeping but I need to get out of here fast. Read More

| Jan 24, 2020

This rate is not accurate as it is 2.25%

Inbound transfers limited to $25,000/day and $100,000/month.

| Aug 28, 2022

Rates are totally uncompetitive now.

| Mar 10, 2021

Northpointe -- my most favorite bank -- held their rate when others dropped -- nice people to deal with -- and -- COURAGE + INTEGRITY.

Signature Bank of Georgia

0.30%

$200,000

Learn More

| Oct 29, 2022

Caveat Emptor! Like others, attracted to their competitive rates. Moved 125K into their MMA from my credit union. They have a system that somehow displays account information from other institutions to be ... Read More

| Apr 8, 2019

Their online interface is circa 2004. They limit the number of accounts you can set up for ACH. And they sit on ACH transfers.... for days. Not sure if the good rates are worth it. Read More

| Aug 13, 2019

I filled out the application 10 days ago answering all questions and sent a file with a copy of my drivers license to Western Bank. I received an email saying that a banker would call me within one busines...

| Jan 4, 2020

Be aware, when cd comes due, they mail a check to your home which takes 7-10 business days. That is a long time to have money not drawing any interest. Read More

Last change: ↑0.00% on November 30.

OneWest Bank, a division of First-Citizens Bank and Trust

0.15%

$100,000

Learn More

Rate not available in all states.

| Aug 7, 2020

Had a car loan with them. Paid it off because I was selling the vehicle. They told me it would take 10 business days to clear the transaction (it was immediate via electronic) and was out of my account th... Read More

| Jan 24, 2020

This rate is not accurate as it is 2.25%

| Apr 18, 2018

Worst experience of my life. Did not fund and gave $25 to my own charity. Read More

| May 26, 2017

Before009 Read More

| Feb 12, 2020

WILL YOU CASH MY EE SAVINGS BONDS? PLEASE ADVSE.

Promotional rate for new depositors only. Prior depositors may receive a lower rate.

| Apr 14, 2020

I call HSBC they told me they don't have 1.85 1 year CD. current CD is 0.8 / year Read More

New Dominion Direct

0.05%

$100,000

Learn More

Edu Federal Credit Union

Restrictions

0.01%

$1

Learn More
All rates listed are Annual Percentage Yield (APY). The APY rate in a savings account or money market account is a variable rate that is subject to change at any point. The Min listed is the minimum deposit account balance required to obtain the rate listed.

Best Online Savings Account Rates

Finding the best high interest online savings or money market account is a highly subjective exercise. The best account for your neighbor may not be the best account for you. To help you determine which account is best for you, we have created the following 7 point checklist:
  • A competitive interest rate. BestCashCow maintains the most comprehensive list of deposit account rates. The rates above are the best available rates for online savings accounts. In order to ensure that your money continues to grow over time, you may wish to avoid banks which rely heavily on very short term promotional rates (such as EverBank). If you open an account with a promotional rate or even if you open an account where the rate isn’t promotional in nature, you should check back with BestCashCow regularly to be sure that your bank continues to offer one of the most competitive rates.
  • Full functionality through online and mobile access. Most of the accounts listed above have robust websites and mobile access that enables full functionality. Read the comments from other users before opening an account as they often highlight problems with access.
  • Assess how the bank provides customer service. Many of the leading online banks now have customer service representatives who are U.S. based and available 24/7 with low wait times. This is often a distinguishing feature that makes a well-recognized bank significantly more attractive than a smaller bank trying to enter the online banking arena.
  • Absence of fees. Be sure that you are opening an online account with a bank that doesn’t charge fees and has very low minimum balance requirements. American Express, CIT, GS Bank, Barclays and Ally are all well known for low minimum requirements and the absence of any unusual monthly fees.
  • Easy Access to your Cash through Immediate Online Transfers. The reason why you keep money in savings is for access in an emergency or to take advantage of immediate financial opportunities. You need access to your cash. Yet, some banks impose strict limits on the amount of cash that you can access from your account in a single transfer or limit the numbers of transfers you can conduct over a given time period. Other banks can delay your transfers for days while they make money on the float. You should check with the bank where you are considering opening an online account to understand the restrictions before you open an account. You may also read the comments from other users above as they can highlight which banks enable the best access to your cash.
  • Stay within FDIC limits! See the section above and read this article.
  • Use the BestCashCow Savings Calculator to see how important it is to be maximizing your interest on savings accounts over time.

Expert Reviews of Well-Known Online Banks, November 2022


Online Savings - 3.00% APY, $1 minimum


Great for: Competitive CD Rates with no transaction fees.

Overview: Marcus is the online bank of Goldman Sachs. Throughout 2018, it consistently offered one of the highest online savings rates, but it was quick to lower its savings and CD rates in 2019 and 2020. Marcus has a highly rated mobile app.

Highlights: Marcus is very highly rated in customer reviews on BestCashCow. Users cite the consistently high savings rates, lightening fast ACH transfers, the ease of web access, strong customer service and the absence of any fees ever.

What to watch for: In 2022, the bank began offering much better rates to those who successfully push the bank on their contacts (i.e. receive a better rate if you get someone to sign up). No ATM access. No custodial accounts.


Citizens Access logo

Online Savings – 3.00% APY, $5,000 minimum


Great For: High Savings and CD Rates with no transaction fees ever.

Overview: In the online space, Citizens is a decade old player that was previously branded as Citizens Access. It brings the experience of Citizens Bank N.A., one the largest, oldest and most well established US banking institutions.

Highlights: Citizens never charges any monthly fees. Its user reviews on BestCashCow have been outstanding. It was ahead of the curve in increasing its savings rates in anticipation of each Federal funds rate increase in 2018, although it may not be as competitive as interest rates in 2022 and 2023. Citizens also allows online customers to set up online savings and CD accounts in the name of a personal trust (very rare among online banks).

What to watch for: All Citizens savings and CD products require a $5,000 minimum balance.


Online Savings Account – 3.00% APY, no minimum


Great For: Sometimes competitive savings rates and No Penalty CD rates with 24/7 Customer Service.

Overview: Ally’s strong advertising campaigns and name recognition has made it one of the most recognized online banks. It savings rate is always competitive. The bank also offers competitive CD products (with modest early withdrawal penalties) and no penalty CDs (with no early withdrawal penalties).

Highlights: BestCashCow user reviews cite a strong mobile app and the ease of getting into and out of No Penalty CD products. Ally often offers new and existing users a 1% cash promotion for bringing new deposits, and regularly gives existing depositors a 5 basis point step up for renewing CDs and No Penalty CDs.

What to watch for: Ally is the former GMAC Bank, having been spun out following the 2009 financial crisis, and may continue to have significant exposure to used automobile loans. Depositors should therefore be cautious and maintain their deposit balances within FDIC limits. In addition, some customers complain about waiting hours to reach customer service by phone at all hours. Others have expressed frustration about being inundated by Ally's cross-selling of auto loan, personal loan, credit card and online trading products.


High Yield Savings – 3.25% APY, no minimum


Great For: Stronger CD rates than many other well-known online banks.

Overview: Synchrony Bank is the former GE Capital Retail Bank that has been spun off completely into its own institution. Even though Synchrony is an entirely independent entity now and should not have exposure to GE's troubles, there may still be hidden exposure and depositors should remain well within FDIC insurance limits.

Highlights: Online savings accounts can be opened for IRAs and trust accounts (which is ordinarily not possible at leading online banks). Upon setting up an account, you may also add up to 10 beneficiaries. Your account may be linked with up to 10 external accounts at other banks. Synchrony offers ATM access and will reimburse up to $5 per statement cycle in other banks' ATM fees.

What to watch for: Synchrony Bank is associated with worse customer service than most other well recognized US online banks. Their website continues to lack basic functionality about deposit times, processes and limits, and has no web-based customer service functionality (no internal email, messaging or chat functionality). To boot, User reviews cite the inability to reach US-based customer service reps by phone. During periods where the bank is not rate competitive, it will cancel outbound transfers with no notice, limit them to $25,000 per day, further delay its transfer process (beyond the usual 3 business days). The bank also charges a $25 outbound wire transfer fee.


Savings Account - 3.00% APY, no minimum


Good for: Solid APY with No Minimum Balance

Overview: Barclays Bank Delaware is a division of the often-troubled UK-based Barclays PLC. In the US, its brand recognition emanates from its acquisition of Lehman Brothers, its name on an arena in Brooklyn and its role as one of the credit card issuers for American Airlines. Unlike in the UK, the US subsidiary does not have a branch network and operates mainly online.

Highlights: Barclays offers savings accounts with no minimum to open, 24/7 access to funds, online transfers to and from other banks, easy ACH transfers, direct deposit and a mobile app. Barclays' user reviews are generally very positive.

What to watch for: Barclays Bank Delaware is not consistently competitive in raising its savings rates as the Federal Reserve increases the Fed funds rates. With uncertainty around the UK's economy under Prime Minister Liz Truss, BestCashCow strongly recommends that depositors at this U.S. subsidiary maintain deposits strictly within FDIC limits.

Why You Can Trust BestCashCow

Every year, Americans collectively lose at least $80 billion in income just by putting their savings in the wrong bank accounts. BestCashCow is the most comprehensive and unbiased bank rate site on the Internet and our mission is to help you to avoid your share of these losses. We monitor over 30,000 rates from over 8,000 FDIC-insured banks and 7,700 NCUA-insured credit unions. Take a few minutes to explore the table above to see the best savings rates currently offered by online banks, or use the tabs to explore local bank rates or local credit union rates if your prefer to do your banking locally.

By using BestCashCow to move your money to a new bank from one with a low savings rate you may be able to boost your annual interest earned from savings by more than 10X. Banks are always competing for your money. Take advantage of it!

You can learn more about BestCashCow here.

Recent Articles


Fed Makes Much Anticipated 4th Consecutive 75 Basis Point Move, Bringing Fed Funds Rate to 3.75% to 4.00%, Refines Language

Rate information contained on this page may have changed. Please find latest savings rates.

The Powell Fed has completed its November meeting with its sixth rate hike of 2022, bringing the Fed Funds rate to almost 4% for the first time in a generation.   The Fed still isn’t finished with rate hikes as it moves late to get a handle on soaring inflation that has now permeated the US economy and shows no signs of moderating.

The Fed says that ongoing rate increases are appropriate, but that it will begin to assess the cumulative tightening of monetary policy.   Even if the 75 basis point moves are over, it is very possible that we will see a further 50 basis point hike in December and one or two more hikes in 2023 before beginning to pivot.

For an economy that has grown addicted to a very cheap cost of capital, the Fed’s moves continue to be difficult to swallow, and that is why the Fed is now speaking about the cumulative impact of its actions.   And, whatever the Fed's goals are, as the Fed gets closer and closer to its peak funds rate (what is now being referred to as a “terminal rate”), financial markets are breathing a sigh of relief.

It is worth emphasizing again that the Fed was late to react to clear signs of incipient inflation in 2020 and 2021, with Jerome Powell and Treasury Secretary Janet Yellen referring to pricing pressure as transient and insisting on holding the Fed funds rate at zero well into 2022 which further fed the inflation beast that they are now trying to tame.

It also bears repeating that nobody has seen inflationary pressures that are as acute as those we are now facing since the 1970s.   While many financial analysts continue to believe that the terminal rate will be no higher that 5%, there continues to be a risk that the Fed may need to move much higher to get things under control, especially since Powell himself believes that the only precedent available to him is Fed Chair Paul Volcker’s actions in the 1970s.

Against that backdrop, I am frequently asked whether online savings rates make sense, given that the top rates lag below not only US Treasuries but short term brokered CDs.   The answer is that they do until we have greater certainty that the Fed is nearing completion of the cycle.   Going into today’s move, the top online savings rates were at or just over 3.50% APY, and it seems likely that they will go above 4% before the end of the year.   The incremental gain in buying even a short brokered CD seems to be outweighed by the risk that we still haven’t priced in rates where we need to go to control inflation.

(Take it from me, I personally bought 2.65% 6-month brokered CDs less than three months ago, and am very glad that I acted in moderation!)

Bottom line: Continue to ride the wave by seeking the best online savings rates here. 


Federal Reserve Moves Fed Funds Rate to a 3.00% - 3.25% Target

The Federal Reserve has raised the Fed Funds target rate by 75 basis points to a target rate of 3.00% to 3.25%.   This is the highest it has been since 2008.

The rate represents the third successive 75 basis point rate increase as the Federal Reserve moves desperately and late to try to get control of inflation in the US.   The rate is now dramatically higher than it was at the beginning of 2022, at which point Fed Chairman Jerome Powell was still holding its target at 0 to 0.25% as part of its COVID-19 emergency stimulation measures.

More importantly, the Fed has sharply raised its Fed funds target for the end of 2022 and into 2023.   Its target rate for the Fed Funds future rate in three months time is now 4.40% (versus earlier guidance of 3.40%), meaning we now have another 125 basis points or so of additional rate hikes in October, November and December.  And, into 2023, the Fed will hold rates higher for longer to fight inflation.

As the Fed Funds rate increases and as liquidity is removed from the system, you should expect to see more competition for your cash.   If you bank is not increasing its savings rate commensurately in order to stay competitive, consider moving to a more competitive online savings or money market account.

Most major online savings and money market rates can be opened in a matter of minutes through their website or mobile application.  Compare the best rates among these online banks on BestCashCow here.


Is Your Online Bank Giving You Their Best Savings Rate As Savings Rates Increase?

More than a decade ago, when GMAC Bank had just rebranded as Ally Bank, they ran a series of commercials designed to build the Ally brand around integrity of treating their customers equally, and not giving preferential treatment to new customers over existing customers.   I’ve only been able to find a handful of these commercials on YouTube, but there were many more than these:

 

 

The commercials were outstanding.   They set Ally apart as a bank that could be trusted to treat its customers fairly, and they also set a paradigm for the online banking industry which virtually all of Ally’s customers were forced to follow for more than a decade.

But, now as interest rates are increasing, some banks feel the need to attract new capital by offering new customers better rates than existing customers.   This practice enables them to keep their cost of capital lower as rates rise.  To be clear, it is perfectly legal to segment your market, but as Ally understood, it is just really bad business.

Here are four culprits who are at it already.

First, Flushing Savings Bank.   This bank has been in the online space for quite a while and it operates IGoBanking, BankPurely and GiftsforBanking.  The bank has a bit of a checkered history of moving rates around between the different banks in order to segment the brand (as does Emigrant Direct which does the same thing through the parent brands, MySavingsDirect and Dollar Savings Direct).   Segmenting the market with different brands, however, is at least transparent.   The IGoBanking and BankPurely brands have been increasing their rates, but the new rates are only available to new customers.  I personally had been a customer for many years through one of the brands and when rates started to rise, I reached out and asked them to extend the new rate to me, and was invited to haggle for something midway)   I obviously closed the account.

Second, Sallie Mae Bank.  This bank has been competitive over the years, and this year as rates have started to rise, they’ve rolled out a whole series of No Penalty rates through a third-party broker that are much higher than those available to existing customers.  I had been a customer for over a decade and when I asked them to make one of these products available to me, I received a curt email which made it clear that I was no longer valued as a customer.

Third, Goldman Sachs or Marcus or Goldman Sachs Marcus, or whatever they have decided to brand themselves this week, has been very competitive since the business was bought from GE Capital a few years ago, and always treated its customers very fairly.   However, as rates began to increase in 2022, they decided to be competitive only for those customers who are hawking the bank to their neighbors and social media acquaintances (i.e., you only get their most competitive rate if someone signs up with your referral code).   Those long-term customers who don’t have quite the following of a Kardashian are left out in the cold with an uncompetitive rate.  Not exactly the kind of loyalty that you would expect from a brand like Goldman Sachs.

Ally’s ads of a decade ago were right!   Banking is a people business and people expect to be treated fairly.   We are in a rising rate environment and there are banks that are desperate for your hard earned capital.  There is no reason to play gotcha and there is no reason to allow a bank that you’ve been loyal to for many years to give you anything but their best rate.

If that is happening to you, find a new bank here

Did you have an experience where you were extended a lower rate than a new customer?  Let us know below.


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Frequently Asked Questions About Online Savings Accounts

What is a savings account?

A savings account is one of the simplest types of bank accounts. It allows you to store cash securely and earn interest on your money.

What is a money market account?

The differences between a savings account and a money market account are largely arcane. Some savings accounts are limited by US federal regulations to six outbound transfers per month (the bank may allow additional access for a fee). Money market accounts are technically not bound by those limitations and offer more ways to access deposits by issuing checks and debit cards. Prudent consumers will compare the two interchangeably, focusing primarily on rates and service among FDIC-insured banks (or NCUA-insured, for credit unions). Consumers who maximize their use of online savings and money market accounts access these accounts through ACH transfers that are easily set up on the online bank’s website so the additional ways to access deposits that money market accounts offer are rarely valuable.

How Do Online Savings And Money Market Accounts Work?

Over the last two decades, online banks have emerged to offer depositors higher rates on their online savings and money market accounts than are available in the major money center banks and in smaller brick-and-mortar banks. Since these online banks do not have expensive branch networks to maintain, they usually pass some of their savings back to depositors in the form of higher rates. All online banks and local banks listed on BestCashCow are FDIC Insured.

Unlike certificates of deposit (CDs) or time deposits, money in savings and money market accounts accrue interest on a daily rate. The best yielding savings rates can conceivably change from day-to-day with new online banks emerging or existing banks more aggressively seeking to raise the capital accounts. It is important to check back on BestCashCow regularly to be sure that your savings accounts continue to earn the most competitive rates, no matter what the rate environment is.

The table above lists the highest yielding online savings account rates.

How Do I Open An Online Savings or Money Market Account?

The process of opening an online savings account or money market account is usually very simple. Banks ordinary ask you a few questions to verify your identify. These questions include seeking information from a state or government issued ID, such as a driver’s license. Due to increased US anti-money laundering rules and Department of Homeland Security requirements, it is very likely that you will also be asked to produce a photocopy of your license and a picture taken from your iPhone or other smartphone and emailed to the bank will ordinarily suffice.

The bank may ask for information regarding a correspondent account from which you intend to have them draw the money to provide the initial funding. You therefore will need the ABA number and account number from an existing account that you have. They will verify this account by having you log back in to confirm the amounts of one or two small deposits to your correspondent account before they draw the funds from this account. Finally, many banks do a “soft” credit pull from Experian, Equifax or some other credit rating agency. While your credit rating will ordinarily not be affected, the application process may involve your answering questions about where you have lived, loans you may have had, past employers or cars you may have owned. Many people do not enjoy providing the amount of personal information required over the internet; therefore, some of the larger online banks have 24-7 customer service to guide you through the process. You can see the experiences of others with a given online savings bank that you are considering by reviewing the comments left in BestCashCow’s table above.

What are the Best Bank Accounts with High Interest Rates?

In the above table, you will find a list of the highest online savings account rates, ranked in descending order by interest rate currently offered. Online bank accounts are slightly different in terms of their features and the services offered. By reading the reviews of each bank, accessible from the rightmost column, you will be able to determine which bank is the best for you. Please also refer to the section below entitled “Best Online Savings Account Rates".

Are online savings rates always better than rates at brick-and-mortar banks?

No. Online banks often offer higher savings and CD rates because they have lower expenses by not having to maintain brick-and-mortar locations. You should also check rates at local banks and credit unions. Unlike other websites, BestCashCow.com compiles all of these rates, listing them in an unbiased manner that shows the proximity of each bank or credit union to you. Please access these rates using the tabs above.

Depending on where you live, there may be banks and credit unions offering rates still higher than the best online savings rates.BestCashCow maintains the largest rate database – including rates on over 2,000,000 bank products from all 8,000 banks and 7,700 credit unions in the US – in enable you to compare online rates with local rates in your area.

Are Online Savings accounts safe?

All bank accounts listed on BestCashCow are insured by the Federal Deposit Insurance Corporation ("FDIC"). The FDIC is a federal government chartered institution that provides insurance to a maximum amount of $250,000 per individual per institution (or $500,000 for joint account holders). All deposits (CDs, Checking, Savings Accounts) held in the same type of ownership at a single financial institution are only insured to $250,000. However, funds held in different types of ownership (Individual, Joint, Trust, Retirement) may fall under separate FDIC insurance provisions. BestCashCow.com strongly recommends that you deposit savings in only FDIC insured institutions and that you do not exceed FDIC coverage limits. Please visit the FDIC's website to determine your coverage limits based on your circumstances.

What are the advantages of Online Savings accounts?

  • Higher interest rate.
  • Often top notch online functionality with 24/7 access, 365 days a year. You can check your balance, update your contact info, make transfers, and order deposit slips at any time. For more pressing issues, customer support is also usually accessible 24/7, so you can talk to an actual human instead of your computer screen.
  • Superior online and mobile access. Many traditional banks have been slow to adopt the best web and mobile features to improve the customer experience online. 
  • Easy money transfer capabilities to and from a primary checking account.
  • Liquidity. Depositors can withdraw their money at any time.

What are the disadvantages of Online Only banks?

  • A variable interest rate. While most leading online banks have not lowered rates significantly in past years, any savings rate can conceivably be lowered at any time.
  • There are often new entrants to the market that can disappear as quickly as they arrive on the scene.
  • Interaction is only via phone or Internet. You cannot walk into a branch and talk to a customer service representative if you have a problem with your savings account. Nonetheless, the leading, high profile online banks provide virtually instant phone access at all hours to a representative. However, interaction with some of the smaller online banks can be more difficult as it is ordinarily limited to business hours in their area of operation.
  • You cannot get cash or cashier's checks instantly as you can in a branch bank, and matters where you need to rely on the US Postal system can lead to significant delays and obstacles.
  • There is no opportunity to build a relationship with a banker should you need a loan or additional services in the future.

What is the best account for easy access?

Depending on where you live and how accessible the branch is, you may find that the best account for easy access is through a local bank or credit union. However, today many high yielding savings and money market accounts provide such easy accessibility, including through mobile apps, and can enable such easy transfers to a correspondent account at a local bank through ACH transfers, that more and more people are opening accounts for cash and savings that they do not need immediately.

Is a high-yielding online savings account your best option?

High-interest savings accounts are always an ideal place to keep your emergency fund or any money to which still you need ready access. Your money will be safer than if you stuffed it under your mattress, and it will grow a bit, too. Investors will find that keeping large amounts of money in savings and CDs provides them with lower returns but cushions them against market crashes like we experienced in 2000 and 2001 and again in 2008 and 2009.

Why do savings rates vary so much?

Even though rates are at levels that are historically very low, there is competition for your money. Like any active marketplace, there are buyers and sellers of goods and services at different prices.

How do I choose the right savings or money market account?

Begin your search with the table here on BestCashCow.com. In addition to checking online savings rates, you should also check local bank rates and local credit union rates.

What is the Best Fixed Rate Savings Account?

BestCashCow strongly encourages people to avoid very short-term promotional rates. The very nature of a savings or money market account is that the rate can change from one day to the next. Savings rates may be guaranteed not to change for some very short length of time, but they are not fixed. If you require a fixed rate or greater certainty that the rate that you are making will not change, you should consider CDs, which represent a time deposit, for some or all of your savings.

Recent Performance of Online Savings And Money Market Accounts

BestCashCow data shows that the highest yielding online savings account and money market rates increased from a base around 0.75% through 2017 and 2018 to a peak just over 2.00% in mid-2019. The Fed Funds rate was lowered in July 2019 and then brought to zero in early 2020 in response to COVID-19. As the Federal Reserve raises the Fed Funds rate in 2022 and 2023, online savings rates may eclipse their mid-2019 highs.

The graph below shows how the average rates for online savings and money market accounts have trended over the last several years.  In addition to the broad movement that we see in online savings and money market account averages according to economic circumstances and the Fed Funds rate, there is wide variability among rates offered by the leading online banks. Even while the online savings average has remained below 0.40% for most of 2020 and 2021, we have seen some banks offer rates as high as 0.65% or 0.70% during this time.

Online Savings and Money Market Average Chart 2022

Should I consider CDs?

If you are unlikely to require access to your cash for some time, you may also consider certificates of deposit (CDs). While CDs have penalties for early withdrawal that may even eat into your principal, the rates on 2, 3, 4 and 5 year CDs are ordinarily significantly higher than savings rates. CDs also offer the certainty of rate stability for the term of the CD. Several sections and articles on BestCashCow can also help you to identify your proper cash allocation between savings and CDs.

With savings rates at such low levels, does earning a higher savings rate or the best savings rate really mean anything to me?

Even a difference of a couple of basis points (hundredths of a percentage point) can really add up over time, especially on large sums of money. You may wish to familiarize yourself with the BestCashCow Savings Calculator in order to understand the importance of compounding interest at higher rates on your savings over time.

If you have not accessed the BestCashCow Savings Calculator or mastered the magic of compounded earnings, here is the plain and simple truth:
  • $250,000 deposited at a major money center bank like Chase, Citibank, Bank of America or Wells Fargo is likely earning less than 0.10% APY. That money is therefore making no more than $250 a year in interest.
  • That same $250,000 deposited at a leading online bank is earning over 1% or over $2,500.
  • Even though the increased earnings from high yield savings (in this example, $2,250 annually) is fully taxable at the federal and state and local levels, wouldn’t you like to be earning that extra income from high-yielding savings accounts?

What does APY mean?

“APY” stands for annual percentage yield. Savings rates are displayed in terms of APY to indicate the effective annual-interest return, including the compounding of interest, over the course of a single year. $100,000 deposited in a savings or CD account with a 1.20% APY will earn $1,200 in the course of the year, but monthly interest in the first few months may be less than $100 a month (this also depends on the number of days in the month). Hence, the APY rate is ordinarily a couple of basis points above the real interest rates. Unlike with a CD, your actual APY in a savings account or money market account may vary if the rate changes.

Are you still hesitant to open a high interest-earning online savings account?

Here are some common reasons people hold off:
  • You need to make more than six withdrawals a month. Avoid potential problems by opening a high earning online money market account (some of the best rates available in the table above are actually from online money market accounts), opening a savings account at a bank which does not enforce the 6 transfer limit, tying your account to a correspondent bank’s money market account or checking account at a major money center bank (like Chase, Citibank, Wells Fargo, or Bank of America) where you make one larger transfer each month.
  • You like having access to a physical branch. Find out what the minimum balance required to avoid fees on your account at your physical branch, then transfer the excess balances to a high yielding online savings or money market account. You’ll continue to have access to the physical interaction and services of the bank with which you are used to banking, but you will also be dramatically increasing the interest earned on cash you don’t need over time.
  • You need to deposit large sums of cash or checks in excess of the online bank’s mobile deposit limit. In this case, you need access to a physical branch. See point 2, above.
  • You want one institution to handle all of your financial matters. Most online banks do not offer mortgages, credit cards and brokerage services. There is no financial advantage to keeping all of your financial transactions in one or even a handful of institutions.

What is a health savings account?

A health savings account (or HSA) is a tax advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). The funds contributed to this kind of account are not subject to federal income tax at the time of deposit.

According to IRS Publication 969 (2016), the interest or other earnings on the assets in the account are tax free and distributions may be tax free if you pay qualified medical expenses or other expenses not covered by health insurance such as dental or vision care. Due to the tax advantages of a health savings account, these accounts should be set up separately through banks offering them (such as Chase or Bank of America) and their assets should not be comingled with a high yielding online savings account. We know of no online banks currently offering HSAs.

What is an education savings account?

Education savings accounts, such as Coverdell Education savings accounts and 529 plans, are accounts that allow family members to obtain certain tax advantages through setting aside funds for a child’s future education. 529 programs are administered at the state level and you must invest in programs they administer; Coverdell education savings accounts are move flexible (and generally follow the same rules as IRAs), however we know of no online banks currently offering Coverdell Education savings accounts.

What is a child savings account?

A child savings account is a savings account in the name of the child with a parent or guardian named as the custodian on the account until the child reaches the age of 18 or 21 (depending of the child’s state of residency). A child savings account can be a great way to teach your child the importance of saving money from a young age.

More information on child savings accounts can be found here. Ally and Capital One 360 are among the few online banks offering child savings accounts.