Online Savings and Interest Checking Accounts: Where are the Good Deals?

Several months ago, I had a post comparing savings and interest checking accounts that offered by online banks. After last month’s rate reduction by the Federal Reserve, we have seen many online banks lowered their interest rates in the past couple of weeks. The following is an updated list of online bank offers.

Update: Check out the latest, up-to-date online savings and checking account interest rates list to find the best rate for both savings and checking accounts from major online banks.

Bank Savings APY Minimum Checking APY Minimum
E-Trade 5.05% $1 4.00% $5,000
Ever Bank 5.01% $1,500 3.00% $1,500
ING Direct 4.30% $1 3.50% $1
HSBC Direct 4.50% $1 0.05% $5
Bank of Internet 3.90% $100 3.40% $100
Univest Direct 4.75% $1 3.69% $1
Presidential Bank 4.90% $5,000 4.00% $1,500
Salem Five Direct 4.70% $100 N/A N/A
WT Direct 5.05% $1 N/A N/A
Flagstar Bank 4.00% $1 0.50% $1
GMAC Bank 4.90% $50 N/A N/A
UFB Direct 5.31% $1 1.00% $50
IGoBanking 5.17% $1 N/A N/A
FNBO Direct 5.05% $1 N/A N/A
Discover Bank 5.00% $1 N/A N/A
AmTrust Bank 5.06% $1 N/A N/A
Emigrant Direct 4.75% $1 N/A N/A
Umbrella Bank 4.56% $100 N/A N/A
E-Loan Bank 4.75% $5,000 N/A N/A
Citi Bank 4.75% $1 N/A N/A
Costco Capital One 5.20% $1,000 N/A N/A
Washington Mutual 5.00% $1 N/A N/A

While all the banks have cut their rates (UFB Direct seems to be one exception), HSBC went the furthest by slashing their savings account rate 0.55%, from 5.05% APY to 4.50%. In addition, some banks also impose other restrictions on interest rates and fees which are listed in the following.

  • E-Trade Max-Rate Checking Account 0.50% APY for balance less than $5,000.
  • Ever Bank Money Market Account and Interest Checking Account 3-month promotion rate 6.01% APY.
    • Money Market Account $4.95 monthly fee for balance less than $1,500.
    • Interest Checking Account $4.95 monthly fee for balance less than $1,500.
  • ING Direct Electric Orange Checking Account 4.90% APY for balance between $50,000.00-$99,999
  • Bank of Internet Freedom Checking $4 monthly fee for balance below $1,000.
  • Presidential Bank Premier Savings Account 3.00% APY for balance more than $35,000, Checking Plus Checking Account 2.50% APY for balance more than $2,5000 and $5 monthly fee for balance less than $1,000.
  • Salem Five Direct eOne Account 4.80% APY for balance $10,000-$24,999 and $4.90% APY for $25,000-$99,999.
  • WT Direct Savings Account 0.60% APY for balance less than $10,000.
  • Flagstar Bank Money Market Account promotional rate 5.10% APY; Express Checking Account 1.50% APY for balance more than $100,000.
  • GMAC Bank Money Market Account 4.90% APY for balance more than $500; $7.5 monthly fee for balance less than $500 without direct deposit.
  • UFB Direct Interest Premier Checking Account 1.00% APY for balance more than $500.
  • Discover Bank Money Market Account 5.15% APY for balance more than $50,000.
  • Umbrella Bank Saving Account 4.93% APY for balance more than $75,000; 5.35% introductory APY for 90 days.
  • Citibank Ultimate Savings Account must be opened together with other packages, including Citibank EZ Checking, Citibank Account, Citibank Everything Counts Account, or Citigold Account.

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24 Responses to “Online Savings and Interest Checking Accounts: Where are the Good Deals?”

  1. RV |  Oct 09, 2007 at 1:16 pm

    Sun:

    I am thinking of opening a High Yield Money Market Savings Account with Capital One. which is 5.00% APY with No Fees, No Minimum Balances, FDIC Insured upto $100,000 per Depositor.

    I was wondering if you had any experiences with Capital One. My main concern is the how many days will it take when someone does an online transfer of funds from an external account to Capital One account and Vice Versa.

    Do you know of any other online banks with a quick transfer of funds?

    Thank You
    RV

  2. Sun |  Oct 09, 2007 at 2:54 pm

    I don’t know about Capital One but if you use ACH to transfer fund online between banks, it usually take 3 days before the fund can be available. Some banks take a little longer (for example, HSBC takes more than 4 days), some banks may offer faster transfer (IGoBanking has next day transfer but only up to $2000). It depends on the banks and what kind of services they are offering, but in general 3 or 4 days of delay is quite normal.

  3. Rev |  Oct 09, 2007 at 5:08 pm

    GMAC is 2-3 days for ACH tansfers usually. I think you can get faster but it has a fee.

    Also GMAC is at 4.90 not 4.80

    I have been a big fan of GMAC but I may check out UFB and Capital One.

  4. Sun |  Oct 10, 2007 at 3:29 pm

    Rev: Thanks for the correction. I have changed my post.

  5. MoneyNing |  Oct 10, 2007 at 7:12 pm

    Great update. I should look at Costco Capital One…

  6. Michael Shepherd |  Oct 17, 2007 at 7:50 pm

    Thought I’d mention Schwab’s checking offer…

    Everyone with a Schwab Bank High Yield Investor Checking™ account automatically earns 4.25% APY, regardless of your balance:

    http://www.schwab.com/public/schwab/banking_lending/checking?cmsid=P-990750&lvl1=banking_lending&lvl2=checking

    Other benefits:

    * Free checking comes with a Schwab One® brokerage account with no minimum requirement or monthly service charges.
    * 4.00% APY on every dollar in your account—regardless of your balance.
    * No minimum requirement. No monthly service charges.
    * No ATM fees. If you are charged an ATM fee, Schwab will reimburse you.
    * Free online Schwab Bank Bill Pay.
    * Free standard checks and a Visa® Platinum Check Card.
    * Overdraft protection.
    * FDIC-insured up to $100,000.

  7. Tony Roberts |  Jun 04, 2008 at 10:52 am

    Coulee Bank ( http://www.couleebank.net ) offers an incredible 6.01% APY with their Rewards Checking account. The rate is easy to earn. All you have to do is make 10 check card transactions a month, use e-statements, and do 1 automatic payment a month (they call it ACH). Coulee Bank pays 6.01% on the first $25,000 and 1.01% on anything above that. The best thing about this account besides the rate is it is FREE, you can apply online, and it is from a great bank with real people that answer the phone. And as they like to say, Banking Green has its Rewards. The Rewards Checking account saves paper and preserves our natural resources. No wonder I feel good about recommending this to everyone I know. Check it out. I guarantee you will love it.

  8. Cheryl Washington |  Feb 25, 2009 at 5:31 pm

    I prefer a bank that doesn’t have a lot of requirements to get a good rate. That’s why I went with Venture Bank Direct. True, their rate for online checking accounts is only 3.5%, I have a fraction of the requirements that Tony, earning his 5% at another bank.