You never know when Murphy (as Dave Ramsey puts it) is lurking around the corner. Murphy’s Law states that anything that can go wrong will go wrong. So, you need to be prepared by establishing an emergency savings account
A while back (about the time I started blogging) I became interested in online savings accounts because of their attractive savings rates. Obviously, savings rates are lower in general these days, but online savings accounts still beat out brick and mortar savings.
There are typically no monthly fees, no balance minimums, and you can access your money anytime. You can also easily link your online savings account to other accounts, so it’s just as easy to deposit your savings as it is to access it.
I’ve done some research for you and have found what I think are the best online savings accounts available today. They offer attractive savings rates, have secure environments, and are all FDIC insured.
Featured Savings Account
ING Direct – Headquartered in Wilmington, Delaware, ING is one of the largest financial institutions in the world. It operates in 50 countries and is on the NYSE under the symbol ING. There are no fees or minimum balance requirements with the ING Orange Savings account. You have account access 24/7 and can contact a customer service representative during business hours. The interest is accrued daily, compounded monthly and credit to your available balance at the end of the each month. It’s easy to apply and link to your checking accounts and monthly transfers are free. ING is the most competitive in my opinion and serves as home for our emergency savings.
More Online Savings Accounts
Ally Bank – Ally was founded in 1910 as the General Motors Acceptance Corporation (GMAC) to provide auto financing services. It was renamed to Ally Financial in 2010. Ally offers incentive with $0 required to open, no minimum balance, and no monthly fees (for the first 6 transactions). 24/7 customer service, interactive phone support, email and online chat are also available. You’ll get daily compounded interest for maximum earnings. Finally, you can receive sleeping money alerts to prompt you when you could be earning more on your money. FDIC Insured.
Discover Bank – Originally known as Greenwood Trust Services, in 2000, they became a part of the Discover network of financial services. Minimum $500 initial deposit requirement and no minimum balance requirement. Interest on Discover Online Savings Accounts is compounded daily and credited monthly. Has an auto savers plan which automatically transfers money from your personal checking account into your savings account each month. FDIC insured. Also manage your accounts with the Mobile banking iPhone app.
American Express – American Express is a brand we’re all familiar with. They are a strong global company that can be trusted based on the way they do business and for the customer service awards they’re received as noted on their website. The American Express online high yields savings account offers a competitive rate of return and no fees to open or maintain the account and no minimum deposit! Your money is safe with FDIC insurance up to $250,000. You can link up to 3 personal checking accounts so you don’t have to worry about switching banks for your checking needs. Automatic transfers can be set up as well as direct deposits if you choose to send a portion of your paycheck to your savings account. To open an account, simply provide personal information, submit your application, receive confirmation by email and then fund your account electronically or by mailing a check. Overall, the American Express high yield savings account offers a good way to save for emergencies or expenses that occur just a few times per year.
CIT Bank - The CIT Bank savings account only requires $100 to get started. They offer a premium savings rate for those with a balance of $25,000 or more and a competitive rate for lower balances. You can link your CIT Savings to 3 existing accounts to make deposits and withdrawals and access your account online 24/7. There are up to six transactions per month (by federal law) and no monthly maintenance fees. Interest is compounded daily.
WT Direct – WT Direct is a division of Wilmington Trust FSB, part of the Wilmington Trust family of companies which has been around for over 107 years. WT Direct offers no monthly fees and no minimum balance. Customer service 7 days per week, call you back feature and email. Balances of $10,000 or more earns higher rates unlike some banks. High transfer limits. Unlimited links to external accounts. Interest compounded daily and credited to account monthly. Mobile banking feature available. FDIC Insured.
HSBC Advance – HSBC Advance is part of HSBC world – wide bank.HSBC Advance (previously HSBC Direct) offers no monthly fees and no minimum balance requirements and $1 to start the account. Customer service 24/7, call you back feature and email. Connect as many external checking accounts as you want. Secure banking and FDIC insured.
FNBO Direct – FNBO Direct is a subsidiary of First National Bank of Nebraska. The bank was originally opened in 1857. FNBO Direct offers no fees and no minimum balance requirement and you can open an account for as little as $1. Daily balance method is used to calculate the interest which applies a daily periodic rate to the principal balance in the account each day. Use PopMoney mobile application to send and deposit money. FDIC Insured.
Zions Bank – Zions First National Bank is a subsidiary of Zions Corporation which operates through over 500 offices in 10 Western states. Zions offers no minimum balance and no fees. Interest is compounded daily and is paid once a month at each statement. Has been in existence since 1873 and is one of the oldest banks. Your money is FDIC insured. You can also manage your money on the go with the Zions iPhone app.
SmartyPig – SmartyPig is a unique online savings tool where you fund your savings goals. It’s not a bank but the money is held by BBVA Compass the nation’s 15th largest bank. You can also turn your savings into gift cards. There are no fees or minimums. Interest is accrued with quarterly postings to your account. Finally, you can share all your savings goals with family and friends via social networking sites. Others can contribute towards your goals too.
Find a high yield money market or savings account using this comparison tool from Bankrate.com.