Overview of High Yield Online Savings Account Options for 2018

Overview of High Yield Online Savings Account Options for 2018


Savings accounts: everyone should have at least one, but when your local bank is offering to pay you interest at dismal rates as low as 0.01%, saving can be downright discouraging.

Thankfully, in the internet age we live in, savers are no longer limited to opening a passbook account at the corner bank: online options for high yield savings accounts abound.

High yield savings accounts can be a great way to help you save money while still ensuring you have easy access to it. You have 24/7 access to your account online, and your existing checking and savings accounts can be linked to your online high yield savings account, making transfers between accounts seamless.

 

How online banks can offer higher rates

Online banks can offer higher interest rates because most of them do not have to have brick and mortar locations, with all of the expenses that come with physical space and a network of branches. Their overhead is significantly lower, so they pass the savings on to consumers in the form of higher APY rates and other benefits.


 

A note about withdrawals

Know that, whether your savings account is at a brick and mortar bank or in an online account, you are still limited by federal regulations to no more than six free outgoing transfers from the account every month. This is because banks treat checking account and savings accounts differently for purposes of calculating the reserves they are required to maintain by law for checking or other transaction accounts. If a customer were to start treating their savings account like a de facto checking account, the bank’s calculations would be off, potentially putting them out of compliance with Regulation D.

 

A note about FDIC insurance

Savings account deposits with each of the online banks referenced in this article are covered by the same FDIC insurance offered by your local hometown bank. Generally, FDIC insurance automatically covers up to $250,000 per depositor, per insured bank. This means, if a covered bank or savings association fails, you are protected by the U.S. government up to the coverage limit.

 

A note about Annual Percentage Yields (APYs)

Keep in mind that APYs are not guaranteed and are subject to change over time.

 

Details on many high yield online savings account products

We will now highlight ten of the many options available for online savings accounts. We will also answer common questions, such as: Which online savings accounts offer mobile check deposits? Which ones offer ATM access? And which offer the highest interest rates?

 

1. Synchrony Bank.

Account Name: High Yield Savings Account
APY: 1.75%

Monthly/Annual fees: None
Minimum required to open account: $0.01

ATM access: Yes
Mobile Check Deposit: Yes
Check Writing: No
External Account Fund Transfers: Yes
Extras: $5/month refund of out-of-network ATM fees.

 

2. Capital One.

Account Name: 360 Money Market
APY: 1.60%, 0.85% if balance is under $10000

Monthly/Annual fees: None
Minimum required to open account: $0.01

ATM access: No
Mobile Check Deposit: Yes
Check Writing: No
External Account Fund Transfers: Yes
Extras: Many physical branch locations.

 

3. NASB eSavings.

Account Name: E-Savings Account
APY: 0.55%, 0% if balance is under $20,000.00

Monthly/Annual fees: $7.50 per month if $20,000 minimum balance is not met and no activity in 6 months.
Minimum required to open account: $20,000.00

ATM access: Yes
Mobile Check Deposit: Yes
Check Writing: No
External Account Fund Transfers: Yes

 

4. Marcus (previously GE Capital Bank).

Account Name: High Yield Savings
APY: 1.70%

Monthly/Annual fees: $0
Minimum required to open account: $0

ATM access: No
Mobile Check Deposit: No
Check Writing: No
External Account Fund Transfers: Yes
Extras: Marcus also offers no-fee personal loans at fixed rates.

 

5. Discover Bank.

Account Name: Online Savings Account
APY: 1.65%

Monthly/Annual fees: $0
Minimum required to open account: $0

ATM access: No
Mobile Check Deposit: Yes
Check Writing: No
External Account Fund Transfers: Yes
Extras: First fee each year is forgiven and waived.

 

6. Ally Bank.

Account Name: Online Savings
APY: 1.65%

Monthly/Annual fees: $0
Minimum required to open account: $0

ATM access: No
Mobile Check Deposit: Yes
Check Writing: No
External Account Fund Transfers: Yes
Extras: 24/7 customer service and free cashier’s checks.

 

7. American Express.

Account Name: Personal Savings
APY: 1.65%

Monthly/Annual fees: $0
Minimum required to open account: $0

ATM access: No
Mobile Check Deposit: No
Check Writing: No
External Account Fund Transfers: Yes

 

8. Barclays.

Account Name: Online Savings
APY: 1.65%

Monthly/Annual fees: $0
Minimum required to open account: $0

ATM access: No
Mobile Check Deposit: Yes
Check Writing: No
External Account Fund Transfers: Yes
Extras: Low $5 non-sufficient funds fee.

 

9. My Savings Direct (through Emigrant Bank).

Account Name: MySavings
APY: 1.00%

Monthly/Annual fees: $0
Minimum required to open account: $0

ATM access: No
Mobile Check Deposit: No
Check Writing: No
External Account Fund Transfers: Yes
Extras: Fast application process using driver’s license.

 

10. VirtualBank.

Account Name: eMoney Market
APY: 2.01%, 0.80% after the first year.

Monthly/Annual fees: $5.00 per month if $100 minimum balance is not met
Minimum required to open account: $100

ATM access: No
Mobile Check Deposit: Yes
Check Writing: No
External Account Fund Transfers: Yes
Extras: The 2.01% interest rate is guaranteed for one year.

 

Conclusion

While we have highlighted several online savings accounts, keep in mind there are many other regional and more obscure online banks that also offer great high yield savings account options. Some of these banks offer interest rates close to 2.0%.

It is also important to remember that online savings accounts are not the only option for building your savings, and you may wish to explore options for money market accounts or CDs for higher interest rates. Some local credit unions also offer competitive interest rates for savings accounts as well.

Compare your options, find the best savings vehicle for you, and start saving today!