Many of us made a New Year's resolution to spend less and save more.  Saving more can be the more difficult part of that resolution.  One way to get into the habit of saving is to set up an automatic savings plan with an online bank. We like online banks because they offer competitive interest rates, low fees, and other options, while making banking more convenient than it's ever been.   With all of the online banks available today, let's review which ones stand out amongst the rest (Note: interest rates area as of 1/29/2010. For current rates, click on the name of the bank below):



EverBank is one of the few online banking institutions that offers users a high interest checking account. When I say high interest, I mean up to a 1.46% APY return during the first year and a 1.26% APY return every year after that. Everbank offers customers an introductory 3-month bonus rate of 2.25% APY which allows for that higher first year return. In addition to their high yield checking account, Everbank also offers a Money Market account and a variety of CD's. Everbank requires a minimum deposit of $1,500, and if you carry at least a $5,000 balance, Everbank will reimburse your ATM fees, if you acquire them.



SmartyPig, the new and exciting addition to the online banking community, provides only one account option for it's customers; the SmartyPig online savings account. A 2.01%APY is as high as you can find for an interest rate and since SmartyPig has removed most of its account fees, it has become a popular online savings account option. A few cool features that are included in this account are its ability to have deposits made from family and friends via other SmartyPig accounts or by credit card, and the ability to withdraw funds onto a gift card. SmartyPig has teamed up with a large group of well known retailers to offer you a bonus on your gift card conversions. For example, if you withdraw $1,000 onto a Macy's gift card, you will earn an additional 12% on the card, making the total value of the Macy's gift card, $1,200. Pretty sweet!



Ally Bank, formerly the bank known as GMAC, transformed it's image with a new name, new slogan and new purple color.  Funny commercials aside, Ally Bank is a great option for your online banking needs and offers a wide variety of CD's, including a 9-Month No Penalty CD with a competitive interest rate.  As of January 14th, the Ally savings account rate is 1.49% APY and their 9-Month No Penalty CD rate is 1.24% APY but you should check our high yield online savings accounts page, as their rates frequently fluctuate.



HSBC Direct, which unbeknown to be stands for HongKong and Shanghai Banking Corporation, continues to be my online bank of choice.  HSBC Direct currently offers a 1.35% APY on their no minimum savings accounts and offers a wide variety of CD's.  A big plus that HSBC Direct has going for it is it's international availability as it currently has over 10,000 branches in 85 different countries.  If you are planning a road trip, there's a good chance that you can find a branch close to you, in-case you find yourself in money troubles abroad.  One of the oldest and most respected online banking institutions, I use HSBC Direct as their interest rate rarely fluctuates and their convenience and customer service has always been of a "top shelf" quality.



WTDirect, which stands for Wilmington Trust Direct, is one of the first companies to offer an online savings account without a national brand name.  Located in Delaware, WTDirect currently offers it's customers a 1.41% APY on their savings accounts ONLY IF they have at least $10,000 deposited.  If your account balance is less than $10,000, you should consider moving your money elsewhere as WTDirect is only offering 0.15% on your money. While you won't find any CD or Money Market options, WTDirect routinely offers customers cash earning promotions and provides excellent customer service.





ING Direct, which stands for Internationale Nederlanden Groep (It's a dutch thing) currently offers customers a wide variety of accounts and services that many other online banking institutions do not. In addition to their online savings account which offers a 1.25% APY and their electric orange high yield checking account which offers a 1.45% APY, ING Direct also can provide customers with home loans, business savings and checking accounts, investment opportunities through their ShareBuilder brand and IRA accounts and rollovers. ING Direct is a fan favorite of the personal finance community and if you are looking for one account that has a variety of future options, then ING Direct is definitely a top choice.



Discover is more than just credit cards these days and when you compare their savings rates with other online banks, Discover Bank will usually come out on top.  They currently offer a pretty sweet 1.60% APY on their online savings account and a very high 3.25% APY on a 5-year CD.  With no minimum requirements for their savings account, Discover Bank makes for a very attractive place to store your cash.  Discover Bank also offers a neat twist to your IRA as you can earn 3.70% APY on a 10-year IRA CD return.  There's really no telling if interest rates will pick up anytime soon and 3.70% APY is one of the highest rates you will find for any guaranteed return today. Lastly, Discover Bank also is one of the few online banks to offer a 9-month no penalty CD, in-case you need to pull funds out early.

E*Trade offers an online savings account, checking account and plenty of CD options even if you are not using them as a stock or options broker.  The APY's leave much to be desired as the current checking account APY is 0.30% for balances of 5K+ and their online savings account rate is a low 0.50% but the main advantage of opening and online banking account with E*Trade is the convenience you will have if you choose to use them as a broker.  Transferring funds to and from your broker account using your E*Trade savings or checking account is a cinch and can save you a few days in transfer time as well.  However, if you're not planning to use your E*Trade savings account for investing purposes, you can certainly find better interest rates elsewhere.



Dollar Savings Direct, a division of Emigrant Direct is the simplest form of online banking available today.  Dollar Savings Direct only offers one savings account option and currently offers it at 1.50% APY, which is just high enough to beat out a majority of other banks on this list.  Your current checking account will need to be linked to your Dollar Savings Account to make deposits and you must maintain a minimum balance of $1,000 to receiver the high interest rate.  You can also set up CD's using your savings account, however the interest rates available are not very attractive.





FNBO Direct, which stands for First National Bank of Omaha, currently offers a competitive 1.40% APY for its online savings account, with a minimum deposit of $500.00 (The balance must also be maintained at $500.00).  In addition to it's online savings account, FNBO Direct also offers a extra rewards credit card where you can redeem the points you earn for cash right back into your savings account.  For the first year, you earn double points on all purchases, then the standard 1 point per dollar spent.  While FNBO Direct does offer CD's their rates are significantly lower than what you can find at Ally Bank, so you may want to look elsewhere.





Capital One Direct has recently added a 10% interest bonus on their online savings account meaning that you can earn 1.76% APY on your money each and every year that you maintain at least $15,000 in your account or have an active Capital One Credit card.  If you do not meet this criteria, then your rate each year is still 1.60% APY as long you maintain a balance of $2,500.   Unfortunately Capital One has recently removed their checking account options but they also provide the standard timetables for CD's and offer Money Market accounts.  Capital One Direct continues to earn JD Power and Associates rewards for their banking customer service so you can feel confident that all of your issues will be handled in a timely and professional manner.





American Express was struggling to make ends meet when the credit crisis became a big problem a little over a year ago.  Credit card holders were defaulting at an enormously high rate and without any solid liquid assets to speak of, AMEX asked for approval to become a bank so they could have the liquidity they needed to persevere.  Just launching a few months ago, the American Express Bank product line is simple and limited to an online savings account and standard CD's and they currently offer a respectable 1.50% APY if you decide to open a savings account.  I'm sure as the economy continues to stabilize, American Express will enhance it's available products and increase the variety within, however right now, the banking concept is still a little raw.





Zions Bank provides it's customers the option of having an internet only account, which is how they fall into the online savings account category.  Initially when visiting their website, it was hard for me to find where their rates and available online accounts were listed but there is a tab titles "Internet Only" that led me to my desired page.  Through Zions Bank, you can sign up for an online savings account with a 1.25% APY or take advantage of their CD's and IRA CD's.  Once you've browsed through their savings options you may want to take a look at their credit card options as they have a few cards with incredibly low APR's and excellent rewards.





E-Loanoffers two varieties of their online savings accounts, one that earns 1.35% APY and another that earns 1.15% APY.  Both accounts require a minimum deposit of $5,000 and if you want to earn the higher interest rate you need to make sure that you deposit at least $100 into the account every month.  If you fail to make a deposit of this amount within any 60-day period, your interest rate will revert back to the 1.15% APY.  In addition to online savings accounts, E-Loan also offers home loans, mortgage refinance, auto loans, student loans and pretty much any other loan you can think of.  Savings accounts and CD's are a new twist for E-Loan but it's relatively high interest rate on savings and CD's show they mean business. E-Loan is backed by Banco Popular North America.







Univest Direct offers all users a no fee, no minimum online savings account, checking account and business savings account.  If you're fed up with larger companies like Citibank charging you fees for your checking account, then opening a Univest Direct checking account may be your best bet.  Currently, customers earn a low 0.25% APY on their checking account but if you're old school and still write paper checks, no worries,  Univest still allows for the use of paper checks.  Your online savings account will earn a very respectable 1.25% APY and you escape surcharges at over 37,000 ATM's nationwide when you use your Univest Direct debit card.