Online Savings Account

An online savings account is an excellent way of banking through the internet because of its promising high returns and convenience. People and even banks often find transacting online preferable than doing the usual face-to-face transactions. It only takes about just a few minutes to apply and transact. For depositors, they would want to keep themselves up to date with their accounts. Furthermore, online banks have a 24/7 tech support that could entertain questions anytime of the day. Banks, in the case of bank statements, wanted to do away with the paper statements because of high costs and 'paper clutters'. With online bank statements, they don't have to spend much on printing and delivery costs.

Searching for banks that provides the best online savings account is primarily based on the interest rates. Of course, your options should be banks that are secured by FDIC and that has received positive reviews from existing accounts holder. In making a comparison chart for your options, it is best to place the minimum deposit required and the fees in the column heads.

Smarty Pig offers an annual yield percentage or AYP of 2.15% and it does not require a minimum deposit fee. Smarty Pig doesn't have the usual accounts products, such as certificates of deposit, checking accounts and Money Market accounts. It exclusively offers savings account and the application can be done in a few minutes. Depositors can request for an ATM debit card or shop for gift cards from merchants such as Amazon.com, American Airlines and iTunes.

Ever Bank is said to have the highest introductory rate with an APY of 2.25% initially. After three months, the depositor will be given a steady 1.51% interest rate. The bank is FDIC insured and the application can be through their website or through the phone. The initial deposit requirement amounts to $1,500 and limits withdrawals to six per month. Presently, it offers a $75 Cash Bonus for depositors who will set up their first time Money Market and Checking Account.

Among the top banks that offers online savings account is Sallie Mae. Sallie Mae boasts an APY of 1.40%which is equivalent to six times the national average. The funds are compounded daily and the account does not require any minimum deposit fee. Sallie Mae processes the savings account application in about ten minutes. It doesn't charge any fee for opening and maintaining the account.

Discover Bank provides a 1.35% APY and a minimum deposit of $500. It was rated as "Safe and Sound" and Top Tier Winner for high yields by BankRate.com, a leading information provider for banking and finance. This FDIC insured bank was formerly known as Greenwood Trust Company and was renamed Discover Bank in 2000.

Ally Bank provides a 1.29% APY with no minimum balance and no initial deposit requirement. It doesn't charge monthly fees and is also FDIC insured. Kiplinger's Personal Finance named Ally Bank the Best Savings Account in December 2009.