Review of Online Savings Accounts

I have been looking for a new savings account to move my savings to that has a higher interest rate than my current money market.  I have been looking around and trying to find one that is right for me.  Below is some basic information on some of the more popular online savings accounts.

• Current Interest Rate : 1.50%
• Amount required to open  : $1
• Minimum Balance Required : None
• Fees to maintain account : None
• FDIC Insured
• Link to your current checking account for easy transfer

• Current Interest Rate : 1.65%
• Amount required to open : $1
• Minimum Balance Required : None
• Fees to maintain account : None
• FDIC Insured
• Can make deposits thru transfers or deposit at HSBC ATM Machines

WT Direct

• Current Interest Rate : 1.76%
• Amount Required to open : $1
• Minimum Balance Required : $1
• Fees to maintain account : None
• FDIC Insured
• Make online transfer or mail deposit to WT Direct
• Interest rate is only good for the first 60 days on accounts with balance under $10,000.  If balance is below $10,000 after 60 days rate drops to .15%.

E-TRADE

• Current Interest Rate : 0.95%
• Amount Required to open : $1
• Minimum Balance Required : $1
• Fees to maintain account : None
• FDIC Insured
• Accept Direct Deposit, Online Transfer, ACH, Wire, or direct transfer from your E-trade Brokerage account.

FNBO Direct

• Current Interest Rate : 1.90%
• Amount Required to open : $1
• Minimum Balance Required : $1
• Fees to maintain account : None
• FDIC Insured
• Make deposits with online transfers between accounts.

Dollar Savings Direct

• Current Interest Rate : 2.00%
• Amount Required to open : $1
• Minimum Balance Required : $1
• Fees to maintain account : None
• FDIC Insured
• Make deposits with online transfers, direct deposit, ACH, or mail payments.

As you can tell most of these are very similar.  Be sure and check out the details on all of these and see what works best for you.

If you have a large amount there is another service called MoneyAisle that has an online auction.  You go to their website, tell them how much you have to put in an account or CD and then banks will bid for your business.  Think Lending Tree only for savings accounts.  Their rates are competetive on amounts over $1,000, but I would estimate that if you had a large amount then they could possibly beat any rate available publicly.

**Rates are effective as of 5-7-09 and are subject to change.  Check current rates when opening an account.**.