Best Online Savings Accounts

December 26, 2008

The best online savings accounts offer high interest rates, no fees, a low minimum balance, easy online transfers, simple ways to deposit and withdraw your money, and of course – good customer service.

Online savings accounts from banks like ING Direct, FNBO Direct, HSBC Advance, WT Direct, Emigrant Direct, and E*Trade Bank have become very popular due to the high yield interest rates they can pay, usually an APY that even the best banks offline can’t match.  As online banking has become widespread, more and more financial companies have begun offering online bank accounts, giving you many different options.

As you review these online savings accounts you’ll find that many of them have pretty similar features but there is usually one or two differences which can help you choose the best savings accounts for your money.

Here is a look at some of the best online savings accounts:

FNBO Direct Online Savings


FNBO Direct

FNBO Direct has been known for high interest rates and good customer service. With no minimum balance, an option for online bill pay, and an ATM card to access your cash this high yield savings account is one of the best. I use FNBO Direct and would recommend it. – FNBO Direct



ING Direct

ING Direct has been around for a while and is probably the most well known online savings account.  ING is famous for offering a new customer bonus for opening an account. 

They also introduced the ING Electric Orange Checking account which typically offers a competitive interest rate for a checking account.  Before FNBO Direct came along we used to keep all of our emergency fund in this online bank account . – ING Direct

HSBC Direct Online Savings


HSBC Advance

HSBC Advance also offers decent interest rates on the money you deposit into their online savings account. 

Like FNBO Direct, HSBC has no fees and no minimums on their accounts. One benefit of HSBC Advance is they allow you to link your account to multiple other banks to ease money transfers. Earlier this year, Forbes ranked HSBC highly in their annual global ranking. – HSBC Advance

WT Direct Online Savings

WT Direct

WT Direct is the online bank of Wilmington Trust.  With similar features to the other online savings accounts, WT Direct often runs new customer promotions to help set itself apart. 

The latest promotion allows you to earn up to $250 in bonuses depending on your balance in your online savings account over time. – WT Direct


Etrade Bank

E*Trade Bank

E*Trade is best known for it’s online brokerage account offerings but they needed a way for customers to earn interest on the money they had sitting around, waiting to make a trade.  

The online savings account from E*Trade has historically offered a competitive interest rate and you can link your bank account with your brokerage account – E*Trade Bank

FDIC Insured

One common question I get asked is whether online savings accounts are FDIC insured.  People that use them for large amounts of cash obviously want to know if that money is protected by the FDIC.  Of course you’ll have to check when applying but as of the writing of this post, all the online savings accounts above are FDIC insured.


Will this article help you save or earn more money? Get others like it simply by entering your email address below. Your email is used only for delivering daily money tips and you can opt out of delivery at any time. Click here to see all your free subscription options.


Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

All posts by


13 Responses to Best Online Savings Accounts

  • Alexander

    All that to say that fast money isnt automatically bad but you should think twice before you jump in head first imagining that life is going to be all roses and marshmallows. Either you have to be lucky or better at something than everybody else in the world and able to keep it from being imitated. Otherwise fast money is money that is fleeting and regreattable.

  • libia schulein

    I, would like to open and account for my fiance, at the current moment he is in the, UK, doing a job… i want to open it under my name, can you please guide me and help me, how to do online banking… never done it before, what do i need to do,

    thank you, Libia Schulein

  • scmfinance

    Your article was featured in the 52 Week Experiment’s Weekend Edition:

    I really had not given much thought to online savings accounts. Being fairly young, I guess most of my money goes straight into the stock market. Obviously, I’ll need to eventually change that and I appreciate your review as a starting point for my research.

    Again, thank you for the submission.


  • ING Electric Orange Checking $50 Bonus | Deals @
  • 8 Ways to Save Money on Home Insurance | Money Smart Life
  • Ally Bank Review | Money Smart Life
  • Emergency Funds for College Graduates | Money Smart Life
  • Personal Financial Advice from Blogs this Week - January 2 2009 | Personal Investment Management and Financial Planning Blog Directory
  • Emergency Funds for Losing Your Job | Money Smart Life
  • Blog Carnival - A Carnival of Everything Home | My DIY Home Tips
  • Carnival of Economics - January 13, 2009 « Economics 101
  • Carnival of Personal Development Edition #3 | Joyful Days
  • Rich Life Carnival #26 | Rich Life Carnival