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Online Savings & Money Market Account Rates

If you have your savings dollars in a big bank or a bank with low savings rates, then you are losing money. We've found FDIC insured banks that will pay you more. Take a few minutes to explore the options below and see how you can boost your savings by more than 6X the national average rate. There is competition for your money. Take advantage of it!

May 30, 2016

Savings Account National Average Rate: 0.12% ?

ONLINE BANKS APY Vs. Nat'l Av. MIN
GS Bank 1.05% 8.68x $0 Comments (5)
Synchrony Bank 1.05% 8.68x $30 Comments (3)
Radius Bank 1.01% 8.35x $2,500 Comments (3)
Barclays Bank Delaware 1.00% 8.26x $0 Comments (4)
Ally Bank 1.00% 8.26x $0 Comments (8)
My Savings Direct 1.00% 8.26x $1 Comments (2)
ableBanking 1.00% 8.26x $1,000 Comments (1)
Discover Bank 0.95% 7.85x $0 Comments (1)
CIT Bank 0.95% 7.85x $0 Comments (5)
FNBO Direct 0.95% 7.85x $1 Comments (1)
Incredible Bank 0.95% 7.85x $2,500 Comments (1)
American Express Bank, FSB 0.90% 7.44x $0 Comments (1)
Sallie Mae Bank 0.90% 7.44x $0 Comments (1)
Clear Sky Accounts 0.90% 7.44x $1 Comments (1)
Bank5 Connect 0.90% 7.44x $10 Comments
Colorado Federal Savings Bank 0.85% 7.02x $2,500 Comments
Mutual of Omaha Bank 0.85% 7.02x $5,000 Comments
Amboy Direct 0.80% 6.61x $3,000 Comments
Amtrust Direct 0.80% 6.61x $5,000 Comments
Virtualbank 0.78% 6.45x $100,000 Comments
Capital One 360 0.75% 6.20x $0 Comments
Bank of Internet 0.75% 6.20x $100 Comments
New Dominion Direct 0.70% 5.79x $50,000 Comments
EverBank 0.61% 5.04x $1,500 Comments
Zions Bank 0.50% 4.13x $2,500 Comments
OneWest Bank 0.50% 4.13x $100,000 Comments
E-Loan 0.40% 3.31x $100,000 Comments
Nationwide Bank 0.30% 2.48x $1 Comments
Savings Square 0.30% 2.48x $1 Comments
CNB Bank Direct 0.26% 2.15x $100 Comments
BAC Florida Bank 0.25% 2.07x $100 Comments
AirBanking 0.25% 2.07x $1,000 Comments
HSBC Advance 0.15% 1.24x $100,000 Comments

Online Savings or Money Market Accounts

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Savings or money market accounts from online banks have become increasingly popular over the past ten years for the higher rates they generally offer. Because 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 or time deposits, money in savings and money market accounts accrue interest on a daily rate that can change from day to day. 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 online savings account rates have remained relatively stable over the past 18 months and the average online savings account rate is now equivalent to a three year CD.

Advantages:

· Higher interest rate

· Often, top notch online functionality

· Easy money transfer capabilities to and from a primary checking account

· Liquidity. Depositors can withdraw their money at any time.

Disadvantages:

· A variable interest rate. Although online banks have not lowered rates significantly in the past 18 months, they can lower them at any time.

· Interaction is only via phone or Internet. While you cannot walk into a branch and talk to a customer service representative if you have a problem, many of 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.

· 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.

· No opportunity to build a relationship with a banker should you need a loan or additional services in the future.

All bank accounts listed on BestCashCow are FDIC insured. The Federal government 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. Please visit the FDIC's website to determine your coverage limits based on your circumstances. BestCashCow.com recommends that you deposit savings in only FDIC insured institutions and that you do not exceed FDIC coverage limits.

To see how this account compares to other similar types of investments, please view the BestCashCow income guide. View it here.

  • 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
    or
    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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Add Your Comment

 

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.

Online banks offer higher savings and CD rates because they have lower expenses from not having to maintain brick-and-mortar locations, but you should also check rates at local banks and credit unions using the tabs above.

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 money market accounts offer more ways access deposits by issuing checks and debit cards, but 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 does annual percentage yield (APY) mean?


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 may vary if the rate changes.

How do I choose the right savings account and should I consider CDs?


Begin your search with the table here on BestCashCow.com that you have found. In addition to checking online savings rates, you should also check local bank rates and local credit union rates. 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. Several other sections and articles on BestCashCow can also help you to identify your proper cash allocation between savings and CDs. Access these below. You should also familiarize yourself with our Savings Booster Calculator in order to understand the importance of compounding interest at higher rates on your savings over time.