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5 Best Online Savings Accounts of 2014 Review

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: 0.80% 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 .80% 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.

Share This Article

  • Tammy Johnson

    These rates for online savings accounts seem too good to be true!

    • Hannah D.

      So true. But either way, i’ll take a 0.85% APY!

  • TheBrokeProfessional

    Awesome list. Online savings accounts trump interest rates of even long term CD’s. It’s almost a no-brainer on where to keep your short term money nowadays.

    • GBR Casey

      Thanks!

  • Bill Fold

    This is why people are not putting money into banks and in turn why banks are struggling. This list shows that even online without people or paper waived due to the consumer we still come out short. For example they want your money for 60 months on a cd and in turn they make millions and you are give you pennies in return. For 5 years on a CD, which is you give them money for 5 years to invest in whatever they want, loan to which ever business or person they want and collect interest over and over as they loan your money out again and again over 5 years. You come back 5 years later and collect your reward and what you get in return for say 1000 dollars, would be 104.88. Bright side is you have an extra 104.88 however the bank made more. Because you gave them the money to use I was able to go and borrow 1000.00 for something personal. An interest rate on a personal loan averages 9% to as high as 29.99%. Thats also not including all the fees that come with the loan. So even at 9% they made 90 bucks plus fees. Then they loan it again and again. You make 104.88 over 5 years and the bank? I’m sure you get my point.

    • GBR Casey

      Yes, banks are businesses which means they operate to make a profit off the services they provide. You can always opt for a credit union…but good luck finding much better rates right now.

      • MarkYbel

        Yes, they are a “business” like the car companies, they make money off their good and services until they don’t. Then they go running to the taxpayer to bail them out, because “we must save jobs.” Of course, since the taxpayers are cleaned out too, the only alternative is to print money.

  • Jonathan B.

    Dang, I didn’t even know some of these banks offered great rates to people. Thank you

  • Dee

    Is it safe to sign up online with your SS? These are all FDIC insured?

    • GBR Casey

      Yes, all of these online banks are FDIC insured. As long as proper security measures are in place on your computer, it’s perfectly safe to enter your info and sign up.

  • Barbara Lieberman

    I am an American moving to Crete, Greece in the near future. What suggestions ca you offer for transferring money from the US to Greece, and what is the safest method, as well as most secure banking institutuin?

  • Brian Huber

    I guess none are offering the deals of a few years ago where the bank gave $50 or $100 for opening an account and keeping it for at least a year. The effective yield on those for one year was really great.

  • Passerby

    Ally Bank currently offers 0.87% APY.

  • Benjamin van-Rooy

    What was your method for ranking? I am not sure why Barclays is 3rd when it has the highest APY!

  • David

    Thanks for the list. I have Capital One right now (started out as an ING Direct customer) and am looking to open another online savings account with another bank. My main concern (which you didn’t address here, and sadly most people don’t) is the limit of ACH transfer for each bank. I’m not referring to the federal limit of 6 withdrawals per month, but the actual amount of money you can withdraw per transaction/day/month. For example, I read that Discover limits you to a withdrawal of only $50,000 per month. This is a big concern for me because I’m using these accounts to save up for a house, which may require a large withdrawal within days. If you can include ACH limits for each account that would be great!

  • The Stig

    AMEX’s rate dropped to 0.80% – just FYI