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Online Savings & Money Market Account Rates 2016

If you have large amounts of cash in a large bank, or any bank with low savings rates, you are making less in interest than you could be and should be making. There are FDIC- insured banks that will pay you more through higher savings rates on your deposits. Take a few minutes to explore the table below that presents an unbiased list based on the best savings rates currently offered by online banks. 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!

October 26, 2016

Savings Account National Average Rate: 0.12% ?

Goldman 1.05% 8.68x $0
Reviews (11)
Barclays Bank Delaware 1.00% 8.26x $0
Reviews (7)
Ally Bank 1.00% 8.26x $0
Reviews (15)
ableBanking 1.00% 8.26x $1,000
Reviews (2)
Radius Bank 1.00% 8.26x $2,500 Reviews (3)
Discover Bank 0.95% 7.85x $0 Reviews (1)
CIT Bank 0.95% 7.85x $0
Reviews (5)
FNBO Direct 0.95% 7.85x $1 Reviews (1)
Incredible Bank 0.95% 7.85x $2,500 Reviews (1)
American Express Bank, FSB 0.90% 7.44x $0
Reviews (2)
Sallie Mae Bank 0.90% 7.44x $0 Reviews (1)
Clear Sky Accounts 0.90% 7.44x $1 Reviews (1)
Bank5 Connect 0.90% 7.44x $10 Reviews
My Savings Direct 0.85% 7.02x $1
Reviews (6)
Colorado Federal Savings Bank 0.85% 7.02x $2,500 Reviews
Amboy Direct 0.80% 6.61x $3,000 Reviews
Amtrust Direct 0.80% 6.61x $5,000 Reviews
Virtualbank 0.78% 6.45x $100,000 Reviews
Capital One 360 0.75% 6.20x $0 Reviews
Bank of Internet 0.75% 6.20x $100 Reviews
New Dominion Direct 0.70% 5.79x $50,000 Reviews
EverBank 0.61% 5.04x $1,500 Reviews (1)
Nationwide Bank 0.50% 4.13x $1 Reviews
Zions Bank 0.50% 4.13x $2,500 Reviews
OneWest Bank 0.50% 4.13x $100,000 Reviews
E-Loan 0.40% 3.31x $100,000 Reviews
Mutual of Omaha Bank 0.35% 2.89x $1,000 Reviews
Savings Square 0.30% 2.48x $1 Reviews
CNB Bank Direct 0.26% 2.15x $100 Reviews
BAC Florida Bank 0.25% 2.07x $100 Reviews
AirBanking 0.25% 2.07x $1,000 Reviews
HSBC Advance 0.15% 1.24x $100,000 Reviews


Online banks have over the last two decades 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.

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.

BestCashCow data has shown that high yielding online savings account rates have remained relatively stable over the past 18 months with the leading rates on any given day being between 1.05% and 1.10%. In spite of the Brexit fallout, the European recession and headwinds from the 2016 US election, the Federal Reserve remains committed to raising The Fed Funds Rate over the next year. This should cause leading savings rates to begin to move higher in late 2016 and into 2017.

FDIC Insurance

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. 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.

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.

Disadvantages of Online Only Banks:

  • A variable interest rate. Most leading online banks have not lowered rates significantly in the past 18 months, there are often new entrants to the market that can disappear as quickly as they arrive on the scene. Any savings rate can conceivably be lowered at any time.
  • 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 money 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.

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. More affluent investors will find that keeping large amounts of money out of real estate and 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.

To see how savings and money market accounts compare with CDs or time deposits and bonds, view BestCashCow income guide here.


What is the difference between a savings account and 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 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.

What is the process of opening an online savings 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.

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 from not having to maintain brick-and-mortar locations. You should also check rates at local banks and credit unions. Unlike other websites, 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.

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 that you have found. In addition to checking online savings rates, you should also check local bank rates and local credit union rates using the tabs above.

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 2016 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 percentage points) can really add up over time, especially on large sums of money. You may wish to familiarize yourself with the BestCashCow Savings Booster Calculator in order to understand the importance of compounding interest at higher rates on your savings over time.

If you are too lazy to access the BestCashCow Savings Booster Calculator or to both with 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 $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, of 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 afraid 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 either 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. While most online banks do not offer mortgages, credit cards and brokerage services. But, in 2016, there is no financial advantage to keeping all of your financial transactions in one or even a handful of institutions.


  • 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.
  • Access 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 any 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 Booster Calculator to see how important it is to be maximizing your interest on savings accounts over time.


Find out how much extra money you can earn by moving your bank money into an account that pays more.

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  • RTH

    March 10, 2016

    Radius Bank is a joke and shouldn't be on BestCashCow's list. It is a tiny little nothing of a bank in Massachusetts with a dreadful website. After doing a hard pull on my credit, they rejected me for a savings account! Their reason for rejecting me was that something called ChexSystems found no evidence of property ownership. I have never been rejected for a savings account before, and I don't appreciate the hard credit pull. Strongly recommend that everybody avoid this one. Have had great experiences with Synchrony, Barclays, CIT and Ally.

  • John T

    January 17, 2016

    My Radius account was finally opened on 1/17/2016 after my initial application was denied because I had more than 2 hard pulls on my credit report. Their system flags hard pulls and if it finds 2 or 3 then any application is automatically turned down. I had applied to iGOBanking but decided not to do my banking there after having big problems trying to log into their website. I had to login in multiple times before the site stopped opening a window that wanted to send me their rates so in frustration I went to Radius. However, in opening the iGOBanking account, my credit report experienced hard pulls and that caused an automatic denial from Radius. I was told to wait 3 days for the system to clear so after 3 days, I submitted another application for their High Yield Savings account and was accepted. The problem I had with Radius was when external accounts are linked, there is no place where they are listed. They appear only in the pull down menu when doing a transfer and the bad thing is they are listed by account numbers only and not bank name. Now who in the world remembers their bank accounts by number??? Isn't it much more consumer friendly to list linked accounts by name? The only account that is listed properly (name and account number) is theirs. So because they are not user friendly I will not be using them very much. I managed to find another online bank offering the same rate at DIME and it required only a $1000 minimum deposit instead of Radius' $2500 to get the 1.10% APY. Radius also compounds monthly and DIME compounds daily.

  • Ron

    January 12, 2016

    Has anyone had any experience with Radius Bank?

  • John T

    December 23, 2015

    The biggest drawback with MySavingsDirect is you are only allowed up to 2 checking accounts as external accounts. This is much too restrictive.

  • David Arogeti

    December 16, 2015

    Jace's comment below is entirely correct. Ally may be offering 1%, but they are masters at delaying ACH transfers in and out. Be prepared to lose several days of interest when moving money in or out. I have been using Bestcashcow to find the highest rates for years and not experienced this same game with any of the other online banks listed here.

  • jace

    December 01, 2015

    ally bank is one of the worst places to open/maintain an acct. the csr's are unqualified to answer/address even simple generic ?'s. they DON't pay interest on time, delaying pymt until several weeks/months after the check has been deposited.
    even though they pay 1% you'll end up getting much less after all their incompenent delays and ignorace re: your acct.
    send your $ elsewhere...sooner rather than latter

  • midiman007

    July 21, 2015

    I have 3 accounts Citbank, synchrony bank and my savings direct. Cit get hands down winner fast ach and customer support is top notch. my savings direct comes in second I hate how long it take for ach to clear. Unlike any bank i have seen. synchrony bank has fast ach transfers but there web page is messed up it does not display pending transfer and yes I complained and 2 months now no fix.

  • HUD

    January 19, 2015

    I have accounts at both MY Savings Direct, and GE Capital (which I opened a couple of weeks ago). Both are easy to open, and both are very good over all. I give the edge to GE for their lightening fast ACH transfers. You can't go wrong with either one though. Good luck...

  • tom pinter

    January 19, 2015

    can't decide; who is the best?
    My Savings Direct
    GE Capital Bank
    Splash 5 Direct
    All paying 1.05%

  • rae

    August 23, 2014

    bank5 rates are great and the chat customer service is amazing. I have been with them for about 3 months and they are superb. it does take about a week to get everything up and running but I have already made interest on my small deposit and you only need $100 in checking or savings to reap interest benefits!! I will be switching to them for all my banking needs

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