best online savings account

The start of a new year brings new resolve to improve finances and find more ways to save money for many Americans — and with the rising availability of online savings account rates with fewer fees and accessibility from anywhere in the country, there’s really no excuse to be without a savings account.

The number of online banks has been exploding in recent years, which does make choosing one increasingly more complicated. Luckily, we’ve done the heavy lifting for depositors who are looking for easy ways to earn money online with interest rates by ranking and reviewing best online savings accounts offered by online-only banks, and listing the five below:

1. American Express Online Savings Accounts Review

American Express Personal Savings

Online Savings Account Interest Rate: 0.85% APY
Interest Compounded: Daily, credited monthly
Minimum Opening Deposit: None
Minimum Balance: None
Monthly Maintenance Fees: None

You may know American Express as a credit card company, but the financial organization also entered into the retail banking sector with the American Express online bank. Among its online products is the American Express high-yield savings account, which tops our list of the best online savings account available this year.

The American Express online savings account provides .85% APY on balances — a rate that is approximately five times the national average savings account rate. Additional perks of the account include 24/7 account access by web and by phone with a customer service representative, personalized account alerts, no fees to open or maintain the account and no minimum balance required, period.

 

2. Discover Bank Online Savings Account Review

Discover Bank

Discover Online Savings Account Interest Rate: 0.85% APY
Interest Compounded: Daily
Minimum Opening Deposit: $500
Minimum Balance: None
Monthly Maintenance Fees: None

In addition to offering daily interest compounding and zero fees to open or maintain its online savings account, the Discover online savings account makes the list at number two for also offering an excellent savings interest rate of .85% APY. While the bank does require a $500 minimum opening deposit, there is no minimum account balance required once the online savings account is opened and funded.

Discover is known for its quick account transfers as well, making funding the account or transferring money much faster than many other online banks. Discover doesn’t charge a fee to perform account transfers, so long as they are limited to six per statement cycle (the maximum allowed by law).

3. Barclays Bank Online Savings Account Review

Barclays Bank

Barclays Online Savings Account Interest Rate: 0.90% APY
Interest Compounded: Daily, credited monthly
Minimum Opening Deposit: None
Minimum Balance: None
Monthly Maintenance Fees: None

Barclays Bank is best known in the UK, but the bank has expanded its retail banking to include US products, such as the Barclays online savings. In fact, Barclay’s online banking division is headquartered in Wilmington, Delaware, along with the US division of Barclaycard.

Barclays’ online savings account stands out for providing one of the best online savings account interest rates in 2014, and there is no minimum balance required to obtain it. There are also no fees associated with the account, except for a $5 insufficient funds fee if withdrawals or transfers are performed with an insufficient balance in the account — extremely low by industry standards. One other thing to note is that Barclays does not send statements via mail; they are available for viewing online only, which is a drawback to some customers.

4. CIT Bank Online Savings Account Review

CIT Bank

CIT Bank Online Savings Account Interest Rate: 0.85% APY, .90% for balances over $25,000
Interest Compounded: Daily
Minimum Opening Deposit: None
Minimum Balance: $100
Monthly Maintenance Fees: None

An online bank that is less well-known, but also offers a quality online savings account with zero fees to open or maintain, is CIT Bank. We reviewed the CIT online savings account which helps it’s depositors maximize their earning potential on funds, allowing those with larger balances to earn higher interest at a premium online savings interest rate of .90% APY offered on balances of $25,000 or more.

Additionally, CIT Bank is truly fee-free. While the bank, like others on this list, does not charge opening or maintenance fees, it also provides free services such as wire transfers and account support. The only fee CIT charges is $10 for outgoing wire transfers if the daily account balance is less than $25,000. This impressive lack of fees makes it easy to accept the (albeit low) $100 minimum balance.

5. Ally Bank Online Savings Account Rates Review

Ally Bank

Ally Bank Online Savings Account Interest Rate: 0.87% APY
Interest Compounded: Daily
Minimum Opening Deposit: None
Minimum Balance: None
Monthly Maintenance Fees: None

The Ally Bank online savings account is another highly-popular, online-only account. With an excellent savings interest rate and no account minimums or maintenance fees, the Ally bank savings account was designed to ensure customers grow their savings rather than lose them to bank charges.

In fact, we named Ally the best online bank of 2013 thanks to its focus on high yields, low fees and outstanding customer service.

One of the few drawbacks to the account, according to customer reviews, is that the time it takes to transfer money can be lengthy. However, most customers agree that the dedicated customer service team and account benefits more than make up for this.

About The Best Online Savings Accounts of 2014

Accounts are insured by the FDIC up to federal limits. Additional terms and conditions may apply. Please note that interest rates and account terms are subject to change at any time at the discretion of individual banks.

GOBankingRates evaluated regular online savings account products from online-only banks, weighing interest rates, convenience, customer service and fees, to determine the five best options for depositors today. Online savings accounts offered by brick-and-mortar institutions were not considered.

GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions, and other financial services organizations. All banks mentioned in this ranking are ConsumerTrack, Inc. clients.

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Best Savings Rates

Institution
Featured Rate (APY)
0.90%
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Institution
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3.00%
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