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.

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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