Online Bank Savings Account Interest Rates (Updated!)

Written by Nickel - 39 Comments

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In the past, I’ve put together rundowns of the best online savings accounts (based on reader feedback) and the safest online banks (based on Bankrate ratings). I thought I’d round things out by compiling a list of current interest rates for the most popular online savings accounts. Here goes:

Note: The list below has been getting difficult to manage since it needs to be updated very frequently, so while I’ll still update it, it may not be as frequently updated as it has been in the past since I’d prefer to spend my time writing about personal finance than updating rates. As a very good alternative, you can use the rate widget here to look up the best online savings rates – not just for savings accounts, but money market and cd rates as well. The folks over at MoneyRates have made it easy to compare the top 50+ rates across banks nationwide – plus these rates are updated almost daily if not daily.


(All rates below current as of 10/16/09)

If you’re looking for a higher yield and don’t mind taking on some additional risk, you might want to check out Lending Club. It’s not FDIC-insured, but annual returns have averaged 9.6% over the past 18 months. It’s free to open an account, and you can get started with as little as $25.

*3 month promotional rate; 1.77% average APY for the 1st year.
**Requires minimum $10,000 balance.

Published on September 23rd, 2008 - 39 Comments
Filed under: Banking
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About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

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» HSBC Direct Increases to 3.50% APY
» Online Savings Account Rate Changes

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39 Responses to “Online Bank Savings Account Interest Rates (Updated!)”

  1. 1
    MITBeta @ Don't Feed the Alligators Says:
    September 23rd, 2008 at 9:44 am

    Everbank is offering 4.65% for 3 months and then 3.82% APY thereafter with a “yield pledge” guarantee that they will stay in the top 5% of the yield of leading banks.

    I’ve been very happy with Everbank for over a year now.

  2. 2
    Jake Says:
    September 23rd, 2008 at 10:15 am

    Thanks for this post, and all your posts for that matter! You feel comfortable having your money in the WaMu account despite all the recent rumors/turmoil/etc?

  3. 3
    Budgets are Sexy. Says:
    September 23rd, 2008 at 11:18 am

    I’m in!!!! can i borrow $10,000?

  4. 4
    Jacqui Says:
    September 23rd, 2008 at 1:38 pm

    I’m happily getting the following rates on my accounts at Century Bank Direct. I have one of each kind.
    Checking: 3.35%
    Savings: 3.41%
    Money Market: 3.57%
    You read that right – I’m earning more on my CHECKING account than ING pays on savings. Century Bank Direct rocks :)

  5. 5
    Lau Says:
    September 23rd, 2008 at 2:12 pm

    E-Loan used to have a decent rate. I opened an account about 18 months ago with a 4.5%. We are now at 1%… ridiculous

  6. 6
    Ziggy Says:
    September 24th, 2008 at 8:13 am

    How about a Vanguard tax-exempt money market fund. Around 4% with the tax advantage.

  7. 7
    FlatGreg Says:
    September 24th, 2008 at 2:54 pm

    Any reason why HSBC is listed above WT and Etrade when it has a lower rate?

  8. 8
    nickel Says:
    September 24th, 2008 at 5:56 pm

    FlatGreg: No reason, just an error on my part. Thanks!

  9. 9
    Jeff Says:
    January 5th, 2009 at 7:47 pm

    Dollar Savings Direct has a 4.0% rate with a min of a 1000.00 and also a promise to be in the top 5%.

  10. 10
    Jacqui Says:
    January 5th, 2009 at 10:36 pm

    Happy to report that Century Bank Direct still hasn’t lowered their rates! Oddly enough, their CDs have actually dropped below their normal account yields.

  11. 11
    unimax Says:
    January 6th, 2009 at 10:20 am

    Thanks for keeping on top of this.

  12. 12
    Mike Says:
    January 7th, 2009 at 1:18 pm

    Right on Unimax… It’s 2009. A lot has changed since 09/2008. Perhaps 0$Nickel went Bankrupt.

  13. 13
    MJ Says:
    January 9th, 2009 at 11:40 pm

    Just upgraded IRA accts from 3.20 rate and purchased two jumbo CD’s from Alliant Credit Union with a 4.50% APR – 48 moths. Minimum deposit was 25K each. Looks like it was a very good move.

  14. 14
    Tim Says:
    January 10th, 2009 at 10:27 pm

    my last cd matures in two days. i’m going to put them into the market. i’d rather get over 4% dividend in a good company that has good earnings prospects than lock into a cd again. then again, i have cash in tax-exempt mmf account.

  15. 15
    liz Says:
    January 19th, 2009 at 5:44 pm

    why don’t you include Everbank on your list of rates?

  16. 16
    Matt Says:
    January 24th, 2009 at 8:42 pm

    I’ve been with provident-direct for almost a year, started at 4.5% lowered to 3.75 than 3.5 and now 3.25 but it has been a steady decrease with the economy.

  17. 17
    Dawn Says:
    January 30th, 2009 at 3:54 pm

    Actually, ING is down to 2.40% now.

  18. 18
    Archangel Says:
    February 1st, 2009 at 10:52 am

    I highly recommend looking at Bankrate.com’s Safe&Sound report before making your deposit. I think it will answer some of the questions here such as “Why not Everbank?” The information is unbiased and based on FDIC data. I decided against banks such as Everbank, Emigrant (which looks like it’s near collapse), and WaMu based on this information. And I withdrew all of my money from AmTrust for the same reason.

  19. 19
    Liz Says:
    February 1st, 2009 at 11:01 am

    I did look at bankrate.com and that is why I asked, why not Everbank? – it has one of the highest safety ratings on bankrate, higher than some of the other banks mentioned in this thread.
    Am I missing something? If so pls send a link or quote!

  20. 20
    MITBeta @ Don't Feed the Alligators Says:
    February 1st, 2009 at 8:07 pm

    As a current Everbank customer, I would also like to know if there’s a reason I should be concerned with Everbank.

  21. 21
    unimax Says:
    February 2nd, 2009 at 9:41 am

    Etrade website still mentions the rate as 3.01. Why do you show it lower?

  22. 22
    nickel Says:
    February 2nd, 2009 at 9:56 am

    unimax: It’s dropping at close of business today. No sense in showing it higher since people who open an account now will never get the higher rate.

  23. 23
    Mark Says:
    February 2nd, 2009 at 11:40 am

    Thanks for the info on E trade as I was considering them. With that kind of a rate drop I am taking them off the list. I am enrolling in Dollar Savings. I think I will also open IGO banking

  24. 24
    nickel Says:
    February 2nd, 2009 at 4:31 pm

    Your wish is my command. Everbank is now included.

  25. 25
    deedee Says:
    February 3rd, 2009 at 8:40 am

    When I logged into my ING savings account this morning; it appears that the rate has dropped again…to 2.2%.

    boo hoo :-(

  26. 26
    Mike Says:
    February 3rd, 2009 at 10:38 am

    Union Federal Savings Bank (www.unionfsb.com) is currently at 3.01%. Minimum to open an account is $1, I believe.

  27. 27
    Archangel Says:
    February 7th, 2009 at 10:42 am

    Liz and MITBeta — Looks like Everbank improved signficantly. They’re now four stars. That wasn’t the case in December 2008.

  28. 28
    Kris Says:
    February 11th, 2009 at 12:03 am

    CNB Bank is still offering 3.2%. Any idea how they rank? Didn’t find any hidden clauses … cnbbankdirect.com

  29. 29
    Dawn Says:
    February 19th, 2009 at 2:21 pm

    Looks like ING has dropped again — down to 1.85%. Their rate dropping rate is faster than once per month. Much lower and I’m going to seriously start questioning the word “high” in “high interest rate savings account!!!” Time to find new places to put my money, I think…

  30. 30
    Jacqui Says:
    February 19th, 2009 at 2:27 pm

    E*Trade dropped again too – now 2.15% Wonder if that’ll last?

    Even my favorite Century Bank Direct finally started dropping :(
    Savings: 2.74%
    Checking: 2.34%
    Money Market: 2.59%

  31. 31
    Matt Says:
    February 19th, 2009 at 3:06 pm

    I will recommend http://www.provident-direct.com again. I’ve been with them for almost 1 year now. They just recently dropped to 2.82% and were all the way at 4.75% last year around this time. The drops have been steady and they always seem to stay ahead by 0.5-1% of everyone else out there! FDIC insured.

  32. 32
    Stacey Says:
    February 22nd, 2009 at 1:32 am

    Danversbank has an online 4 month CD with an APY of 3.30 and
    have a 4 star rating at bankrate.com. I’m on the West Coast and
    can’t find any rates over 2.75. Anyone have an account with Danvers?

  33. 33
    Regina Says:
    March 24th, 2009 at 9:49 am

    What about http://www.smartypig.com? Although marketed as a social networking/savings vehicle, it is FDIC insured (it’s the online component of West Bank in Iowa I believe)- but if you set a savings goal and have a monthly withdrawal, it looks like their rate is 3.5% and that’s not an intro rate!!!
    Any thoughts about this site???

  34. 34
    Nickel Says:
    March 24th, 2009 at 9:51 am

    Regina: Too many strings for me. When I want a bank, I want a bank.

  35. 35
    Graham Says:
    April 18th, 2009 at 2:07 am

    Nickel: Great area for online account feedback. Thx. I went through the smartypig.com site and don’t see the strings you refer to – pls. clarify.

  36. 36
    Micki Says:
    April 22nd, 2009 at 3:58 pm

    I have a smartypig account and the only “strings” i have found are that you can’t transfer money FROM your smartypig account unless you withdrawal everything, and they only pay interest quarterly. Oh well -small prices to pay for the high interest rate :)

  37. 37
    Kris Says:
    April 22nd, 2009 at 5:22 pm

    I’m using GMAC Bank online with 2.25%, still one of the best rates around. And even though some might shudder at GMAC, it is FDIC approved and as long as you don’t have more than $250K, you’re safe!

    I really find it very good – you can add a number of external accounts, transfer money to and from (outflow has a cap of 6[I think], but that is generally true for nearly all others), interest monthly, user friendly UI, just a dollar for opening.

  38. 38
    LOL Says:
    June 8th, 2009 at 2:07 pm

    According to bankrate.com, EverBanks 3.01% rate is just a 3-month “teaser” rate — after which it resets to 1.64%…

    You should move Everbank down into the middle (I know you have the footnote, but still…)

  39. 39
    Tim Says:
    September 7th, 2009 at 9:34 pm

    American Express (www.americanexpress.com/startsaving) now offers a 1.85% APY high yield savings account.

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