The best online savings accounts offer high interest rates and great customer service. Savings accounts, particularly so-called “high-yield” savings accounts, are best for money you might need within a year. Any money that you don’t want to subject to the short-term risk and volatility in the stock market should be held safe in a savings account, earning as much interest as possible. Your emergency fund should primarily consist of money held in a high-yield savings account. “High-yield” is unfortunately a bit of a misnomer these days; a decade ago, interest rates were 4% and 5% among select savings accounts and money market accounts. Today, the best rates are all below 2% while a fair amount are still hovering around 1%, many rates are now dipping below the 1% mark. This trend will continue until banks need more cash from depositors.

Interest rates. Interest rates are important because money shouldn’t lose too much purchasing power. In a perfect world, interest rates offered by banks should beat inflation while preserving the balance without risk. Many banks are not now offering a savings option with interest rates high enough to meaningfully beat inflation, so if your savings is at a brick and mortar bank earning below 0.25% APY, choose one of the better options below.

Customer service. When evaluating customer service, there are two important factors to consider. The best banks offer all account maintenance and transfers through a professional, reliable, and easy-to-navigate website. Secondly, live customer service representatives should be knowledgeable, helpful, and available, although customers should have to deal with a representative infrequently if at all.

Based on my own experiences and reviews from other Consumerism Commentary readers, here are the most-recommended accounts for short-term savings. All of the listed interest rates are current as of February 2012, but they are subject to change by the banks. Although I have nine accounts listed below the table of rates, you don’t need to have accounts with that many different banks. Choose one that fits you the best.

First, here is a list of the latest interest rates. Following this table, I offer a few of my own observations and opinions about savings accounts from nine popular online banks. Read the full article →

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As I’ve pointed out recently, banking customers have grown accustomed to the concept of free checking. Thanks to profits in the banking industry from a variety of sources, banks could justify offering checking account services, including debit cards, without charging any fees. The industry has changed over the past year, and many banks, particularly large financial institutions, are finding ways to earn more money from depositors.

Only a few banks remain that offer competitive interest rates — and in today’s environment these rates are nothing exciting — without charging oversized fees. For a limited time, EverBank is attracting new customers with a $60 cash bonus after opening a Yield Pledge Checking Account.

The amount of $60 has become a special number recently. Bank of America’s new debit card fee is $5 per month, or $60 annually. EverBank has devised the clever idea that turning the $60 from a fee to a benefit might be a good way to attract customers. Whether you consider it a gimmick or not, free money can help anyone.

EverBank has some requirements for new customers wishing to earn the $60 cash bonus. The bank doesn’t give $60 to every new customer. Those seeking the bonus will need to be aware of the bank’s conditions for qualification.

• The Yield Pledge Checking Account must be opened by November 30, 2011 with an initial deposit of at least $1,500.
• New customers must establish a repeating direct deposit of at least $500 before January 31, 2012.
• Accounts must have an average daily balance of $1,500 for statement periods ending December 31, 2011 and January 31, 2012.
• The account must remain open until February 29, 2012.

For any new customer who meets the above conditions, EverBank will deposit the $60 cash bonus into the account on or before February 29, 2012. Furthermore, if you use your Yield Pledge Checking Account and are not satisfied after three months and one successful bill payment, EverBank will give you $50.

As an added bonus unrelated to the special promotional offer, EverBank will reimburse users for all ATM fees, regardless of whether the ATM is included within the EverBank network. There is no maximum to this reimbursement as long as EverBank believes the reimbursement requests are legitimate.

EverBank Yield Pledge Checking Account Rates

EverBank is not as well-known as many other banks because they don’t advertise often. The bank has over $12 billion in assets, so even if the bank is not popular, it is sizable. There is no monthly account maintenance fee for the Yield Pledge Checking Account. If the latest offer interests you, sign up for an EverBank checking account and earn the $60 cash bonus before the offer expires on November 30, 2011.

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