This is one heck of an important article, so listen up.
If your savings account is parked at Wells Fargo, Chase, Citibank, Bank of America or any big traditional bank, close your accounts and transfer your money to an online savings account NOW.
Let me qualify that…
Online savings accounts have much higher interest rates over traditional savings accounts Online banks don’t have physical branches or extra customer service payroll, or other good for nothing overhead costs. They pass on some of their savings to you in the form of high interest rates.
Chase is currently offering a near non-existent .01% APY on its savings account. The average online savings accounts offers a rate that is 100 times greater than Chase’s. When is the last time you read about a deal where something was 100 times better than another option?
If you are too lazy to go through the below details I’ll sum it up short and sweet for you. If you have money sitting in your savings and you have no plans of touching it in the near term, then transfer it to a high interest online savings account. Your best bets are the popular Synchrony and Ally banks. Purepoint Financial also seems solid as it gives a big rate which is owned by a huge bank. Your money is protected as they are all FDIC insured.
Here, I even went out of the way to make an infographic for those of you who didn’t want to get into the minutiae of the article…
….hopefully you are still awake? This is important stuff so listen up! …
Below are the smaller, lesser known brands. Many of these guys have nice rates, but they will nickel and dime you to death, ahem ahem Salem and Alliant.
Dollar Savings Direct – 1.40% APY
Check out the fees and account disclosures.
Live Oak Bank – 1.40% APY
I couldn’t find their fee schedule which makes me a bit nervous
Salem Five Direct – 1.35% APY (Up to $1M)
They will nickel and dime you to death. That high APY will be lost to some of the fees. Also they don’t treat their customers right. For example if you already have a traditional checking/savings, then you cannot open an online savings account.
Check out fee schedule
Bank Purely – 1.30% APY
Check out fee schedule
Must wait for a PIN to come through snail mail before using account. Not fast.
Alliant Credit Union – 1.16% APY
Will nickel and dime you to death. For example: $5 Min balance. Paper Statement Fee $1/per. Inactivity fee $10. Dormant account fee $10. Close your account within 90 days of opening, $10. Copy of document $5 per. Foreign outgoing wire transfer fee $50. Domestic outgoing wire transfer fee $20.
Check out fee schedule.
Capital One 360 Savings Account – 1.2% APY (Balances over $10k)
Verdict: You need to open an online savings account tonight, as you most likely are losing out on high interest payments (more cash!). They are easy to setup and usually do not have many fees associated with them.
-All the information in this article should be used as a guidance and rates and fees should always be verified on the bank’s website itself-