Best Online Savings Accounts and How to Find Them

Online savings accounts are becoming a very popular choice for consumers seeking the best interest rates and convenience. Due to their popularity, the number of online saving sites are increasing and it is in the consumer’s best interest to understand what to look for in a online savings site.

Here is the scoop on what makes an online bank a good choice for your money:

Staying Power and Stability
You certainly do not want to deposit your funds into a bank that is not stable. In light of the economic events in the last year, many banks are now on a troubled list. Look for something that is not only FDIC-insured but do your homework and make sure your online bank is on stable ground.

Gut-Instinct for Customer Service
With your brick-and-mortar bank, you can walk in and speak directly with a teller or branch manager. In the online arena, you are more or less dependent on telephone or internet customer service. If you are checking out an online bank, contact them directly and see what your gut tells you about their customer service representatives. Did they answer all your questions eagerly and clearly? Were you left on hold for 30 minutes only to be disconnected? The way the bank handles its customers is a good indicator of how they will handle your money. Look for top-notch service and don’t accept anything less.

Track Record for Rates
Traditionally, consumers sign up for an online account because they offer a higher interest rate than other banks. Check out the history of the bank and their rates over time. Do they consistently stay competitive over time, all the time?

Security Power
Since you are doing the majority, if not all, of your banking transactions via the computer, you will want to be sure that the bank you are dealing with has first-rate security. Many people will still not do banking transactions online due to fraud concerns. Make sure the bank you plan to use addresses all of our security concerns and that you establish very strong passwords for your account.

Site Performance
Again, since the majority of your transactions will be done online, make sure the website it uses runs optimally at all times. It can be very frustrating to try time and again to access a site that consistently fails or is incredibly difficult to navigate.

Customer Loyalty and Brand
Stick with a  company that has a proven positive customer satisfaction rating. You will likely not go wrong if you work with a bank that has a recognizable name and strong reputation.

Some of the current online accounts that seem to be at the top of the list for best online savings accounts include:

ING DIRECT – ING offers no fees or minimum balances requirements. The website is easy to navigate and the customer service end has often be reviewed as satisfactory. Current rate: 1.3% APR *

ALLY BANK – Formerly GMAC Bank, the company offers savings accounts, CDs and money market accounts. The bank is FDIC insured and GM’s bankruptcy has no effect on deposits. Current rate: 1.8% APR.*

HSBC DIRECT – HSBC offers savings accounts with no fees and no balance requirements. When first starting in the online savings world, HSBC offered the highest rate ever available at 6% and still remains competitive. Current rate: 1.35% *

* The noted APR is effective as of this 10/2009 and may change at any time. Please refer directly to the bank’s website to obtain rate information.