There have been some changes for high-yield “internet” savings accounts, typically unavailable directly in a brick-and-mortar bank and only available through online applications.
Presidential Bank is now leading the pack with a 4.87% APY for the first $35,000 of your balance. Unfortunately, this account requires a minimum balance of $5,000.
CitiBank eSavings is not far behind with 4.75% APY on its savings account. To get this account, you must also have a CitiBank checking account. It can be opened at the same time, but there may be fees.
HSBC Direct recently jumped to 4.65% APY. The good news here is there is no minimum balance and no fees. For someone opening a new account and starting from scratch, this may be the best choice.
You can find a table of the latest interest rates for online accounts here.
Updated February 6, 2012 and originally published May 18, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
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{ 4 comments… read them below or add one }
the question is, why do I still have my money in ING? Does anyone have HSBC, and are there any hidden fees or catches? let me know. thanks.
I have most of my money in ING. They hooked me several years ago when their rate was the highest, and I don’t want to expend the energy moving back and forth to whichever bank is offering the highest rate at any one moment. It’s a negligible amount of money in the accounts, so I’m only missing out on a few doallars at the most by not jumping around. Definitely not worth the time.
I don’t have an HSBC Direct account, but you wont’t encounter any fees if you go with them.
Now I have to wait two – four months for emigrant to catch up. disappointing how slow they are.
have a wonderful day,
makingourway
I’ve had HSBC for a couple months now and love it! One caveat; if you elect not to get a debit card when you sign up, you have to call in to setup bank-to-bank transfers and the such. Not a big deal, but kind of a pain in arse.
Otherwise, it’s been great!