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The Highest Savings Account Interest Rates

This article was written by in Banking. 9 comments.

Please view this updated overview of the best online savings accounts.

The highest savings account interest rates change practically daily. Here is a summary of the highest interest rates on well-known banks currently offered.

HSBC Direct Online Savings Account
0.80% APY

HSBC Direct has a track record of offering very competitive rates. I have been adding more to my HSBC Direct account to take advantage of their habit of high interest rates.

Unlike Washington Mutual, HSBC Direct requires no minimum balance and has no recurring account fees.

FNBO Direct Online Savings Account
0.70% APY

FNBO Direct is a newcomer to the online banking arena having launched a little over a year ago, but the bank behind the online presence, First National Bank of Omaha, has been around since 1857 and currently has 38 branches in Nebraska, Iowa, and Texas. First National Bank of Omaha has a CAEL rating of 2 (1 is the highest rating, 5 is the lowest). This means that even though the online account is a new offering, the bank is in good shape and most likely won’t fail like others have recently.

ShoreBank High-Yield Savings

This account is a newcomer. ShoreBank requires no minimum balance and charges no account fees for this online account. An appealing feature is the bank’s attitude toward community development and the environment. Like most banks, ShoreBank turns a portion of deposits into loans. This bank focuses on “loans for projects that promote the efficient use of materials, resources, or alternative sources of energy, that promote the elimination of toxins, and that protect or revitalize land or water.”

If you’re interested in ShoreBank’s High-Yield Savings Account, apply here.

Click Here to Start Saving with Capital One 360Capital One 360 Savings Account
0.90% APY

No list of the top online savings accounts is complete without Capital One 360. They are no longer the interest rate leader, offering only 0.90% APY. In fact, it’s been some time since Capital One 360 has been at the top of any interest rate list, but there are several reasons to include them here. They were one of the first banks to popularize the idea of high-yield online-only savings accounts. Capital One 360 still maintains one of the strongest presences thanks to a vast customer base, good customer support, and a sensible and simple website.

Even though the advertised interest rate is lower than others, new customers can greatly increase their effective interest rate by grabbing a $25 bonus for opening an account. The bonus will work for anyone who opens the account with $250 and leaves at least $250 in the account for 30 days. The bonus is considered interest income for tax purposes.

Capital One 360 has no minimum balances or account fees.

If you’re interested in Capital One 360′s Savings Account, apply here. However, if you want to see if you qualify for a $25 account opening bonus, find out here.

Updated February 13, 2013 and originally published July 31, 2008. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 9 comments… read them below or add one }

avatar TML

If you are a Costco Executive or Business customer, don’t overlook the rates and cash bonus available from Capital One Direct. There is a $10,000 minimum for the best rate but last I checked, their rate at that level was better than those posted above – not a teaser rate either.

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avatar Bachelor Number 1

“If you deposit that initial $250 and nothing else for the year, the interest you earn, because the bonus is considered interest income, will amount to 3.3% APY”

Wouldn’t it actually be just above 13%?

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avatar Luke Landes ♦127,645 (Platinum)

Bachelor: It’s funny, my first calculation was 13.3%, but I second-guessed myself and came up with 3.3%, which doesn’t include the $25 as interest. You’re right, I updated the article.

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avatar Luke Landes ♦127,645 (Platinum)

TML: Capital One is offering 2.75% APY for Costco members right now and 2.5% APY for non-members. You do have to have a balance of at least $10,000 to qualify for the higher rate, 3.75% for Costcto members (2.75% for non-members). If you don’t have $10,000 to deposit, or if you have no other reason to be a member of Costco, you’re better off elsewhere. But for some people, it’s a good choice. Capital One Bank (USA) N.A. has a CAEL rating of 2.

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avatar codeflow

I got the ING with $25 promotion. Very happy with the rate and entire process.

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avatar Rob

The wamu offer is very enticing. I am moving to the west coast soon and need to set up a checking account. But, I couldn’t find anywhere on the wamu site about having to maintain a $300 balance in the online savings account. Can someone point this out to me? Also, does anyone use wamu and can give a thumbs up?

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avatar Tool

WaMu’s obviously taking a grab at new savings money, and chances are it’ll work. I highly doubt the rate’ll last forever. I’ve been with FlagStar for a while…they’re at 3.65% APY right now, just shy of what WaMu is offering, and have been near the top of rates for a couple of years now.

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avatar sandra

how is flagstar? i am trying to decide.

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avatar Roses

Has anyone heard the latest news on the financial health of Wachovia? I earn a fantastic rate on their Way2Save program but am seriously concerned about them going belly up. I heard about IndyMac going under but never followed up to hear how soon people got their money back..
Any comments/insight would be appreciated.

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