January 28, 2009
Posted by Ryan Graves
Choosing an online savings account
This is not a personal finance blog, but as I approach marriage I have been thinking about my personal financial situation a bit more seriously. Instead of only using CD’s from my personal bank I decided to open a “high interest” online savings account. Through researching with bankrate.com and many other finance blogs I found these 3 options to be the best. My main criteria were going to be 1) interest rate & 2) customer service. I’ll explain more on why I chose the account I did below.
» FNBO Direct (Click to Apply) 
This one is my personal favorite. FNBO Direct features no fees and no minimums (though they require a $1 deposit to open the account). Readers liked it for it’s consistently high interest rate, the availability of an ATM card, and because you can easily reach an actual human when you call customer service. According to Bankrate, FNBO Direct is also the safest of the major online banks.
» E*Trade Bank (Click to Apply)
Another of my favorites, E*Trade offers a highly competitive interest rate, no fees, quick transfers, integration with their brokerage accounts, and an automatic savings plan. There’s no minimum, though you have to deposit at least $1 to open your account.
» ING Direct (Click to Apply)
While it doesn’t have the most competitive interest rates, ING Direct was a popular option. The “Orange Savings” account comes complete with no fees and no minimums, and a slick web interface. It’s also very easy to create sub-accounts for different savings goals.
FNBO Direct and ING Direct seemed to be the best 2 non-broker online accounts. FNBO Direct was recently rewarded as the best online account from Kiplinger’s. They also have a bit higher interest rate and they do have a pretty slick online interface. My decision became between E*Trade and FNBO because I wasn’t sure if I wanted the stock purchase/brokerage options available. What the decision came down to is the fact that I’m not big on stocks. I’ve never had great investments in stocks and my 401k is already heavy in the market, so I’m going safe with FNBO online savings account at 2.80%. I’ve also gottent the best feedback on FNBO’s customer service, apparently they are the easiest to get a human on the line, I still like that.
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I have ING, and it is really nice because of its sub-accounts. We set up a 'property tax' account with auto deposits every month, and at the end of the year, we have exactly the right amount to pay the property taxes
Another good one that you didn't mention is GMAC. I used to have this one. They tend to be on the high-end of the interest scale...Although their web interface isn't great, they provide a checking account, a check card, and refund some ATM fees at no charge...and do not have a very high minimum balance.
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