Best Online Savings Accounts For 2017

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…

 

A Few Online Savings Accounts for 2017

 

….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-

5 thoughts on “Best Online Savings Accounts For 2017

  1. It’s crazy how low interest rates are with the big banks. I could see the convenience of having a checking account with a big bank since they’re everywhere, but having a savings account makes no sense. I agree opening up an online savings account will get you a much better rate it’s a no brainer. Plus I like the added barrier of having to go to a different place to access your savings. It can help limit temptation to raid your savings account unnecessarily.

    • Hello BrokePro! Yes, you are very right, get a checking account and create an online savings account. That way your money is tucked away in some far away account and you are tempted not to make any withdrawals. Do you have any recommendations of your experience with online savings accounts?

      • I’ve used Ally for a few years now as my primary savings account and it’s been great. Their customer service is good. You can’t go too wrong with any of the banks you listed. The key is to save consistently and stay away from the big bank savings accounts!

Leave A Comment . . .

%d bloggers like this: