An Online Savings Account is a no-brainer for your Emergency Fund. I have tried a several different Online Savings Accounts over the years and the feature that I value the most is consistency. I don’t want to sign up for an account and then find out that the interest rate was just a teaser.
The next most important feature to me is a high interest rate. The rate should be close to the top of the rankings every month and rise automatically as federal interest rates rise. Finally, I want the savings account to have fast transfers, no fees, and good customer service. Interest rates as of 2/12/18.
High Yield Online Savings Accounts
- The following online savings accounts are paying 1.60% APY with no limit on deposits: DollarSavingsDirect, UFB Direct (minimum $5,000 balance), and PurePoint Financial (minimum $10,000 balance).
- Other top accounts include CIT Bank at 1.55% APY, Synchrony Bank, Barclays, and Goldman Sachs Bank at 1.50% APY.
- My favorite Savings Account is the Ally Online Savings Account. Ally is consistently among the top interest rates at bankrate.com and does not have a max balance for their interest rate. They are also a reputable company, are FDIC insured, and have no monthly maintenance fees. The current Ally Savings rate is 1.45% APY.
This compares to an atrocious 0.03% in a Bank of America savings account. As the federal fund rates rise, Ally will also periodically increase their rates automatically. The transfers between Ally and an external bank are between 1 and 3 business days. There is no minimum balance required to open an account.