Savings and money market accounts are great for stashing your short-term money.
All of the online banks mentioned are offering high-yield savings accounts. Since they are available only online, they don’t have to worry about maintaining branches like a traditional bank. They pass the savings onto you with much higher rates — in some cases, 1% or more higher than your local bank. Who can complain about that?
Savings and money market accounts are incredibly safe investments. All of the banks listed are FDIC insured up to $250,000, so there’s nothing to worry about.
Here’s a list of the best online savings accounts available today.
Investor Junkie’s Recommended Savings Account
We currently recommend CIT Bank as the best online savings account. At 1.55% APY, it has one of the highest-yield savings accounts available today.
With attractively high interest rates and low fees, CIT Bank makes an attractive choice for an online savings account. However, if you're looking for a checking account, you'll have to go elsewhere.
- High-Paying Interest
- No-Fee Banking
- Flexible CDs
- No Checking Account
- No Loans or Cards
- No IRA Options
CIT Bank was designed primarily to provide high-yield savings and CD accounts; as such, the bank doesn’t offer other products, such as checking accounts or IRAs, which you would find with more traditional banks.
All of your banking with CIT Bank is done online, and you can manage your accounts with a mobile app. You can fund your savings using three methods:
- Electronic funds transfer
- Mailing a check to CIT Bank’s home office
- Wire transfer
You can withdraw funds by contacting CIT Bank via either phone or mail.
CIT Bank’s high-yield savings account requires a minimum opening deposit of $100 and — perhaps best of all — charge absolutely no maintenance fees.
Online Savings Accounts
Capital One 360
Bankrate rating: 5/5
Bankrate rating: 3/5
Other Online Banks
We like Ally Bank for its interest-paying checking and savings accounts, as well as CDs and money market accounts. Its APYs are much higher than what you'll find at a brick-and-mortar bank and are in line with other online-only institutions.
- No Fees
- No Account Minimums
- Interest-Paying Checking
- 24/7 Customer Service
- Competitive Rates
- Easy-to-Use Online Interface
- eCheck Deposit
- Ally Invest
- Transaction Limits for Savings
- No Cash Deposits
- No Brick-and-Mortar Locations
If you're looking for somewhere to park your cash, EverBank's interest-paying accounts might be just the ticket for you. The bank even offers CDs tied to foreign currencies, along with investments in precious metals.
- Great CD Selection
- Competitive Rates
- CDARS Program
- Comprehensive Investments
- Mobile App
- 24/7 Phone Banking
- Few Branches
- Small ATM Network
- Risky Foreign Currency CDs
- No Custodial Accounts Offered
Some folks are surprised to find out that Discover offers more than just credit cards. With a solid APY of 1.50%, this bank’s savings accounts look particularly appealing. In fact, it’s still a higher rate than you’ll find with many banks, either online or brick and mortar.
We think this high rate makes Discover savings account a great choice for emergency funds.
Discover requires no minimum balance for its savings accounts — and you won’t be charged any maintenance fees, either. So park your cash and let that APY get to work.