Best Online Savings Accounts
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
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 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
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
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.
The Best Colleges for Your Money
The best college for your money obviously depends on what you’re looking for in a school; but whether your college search is for you or your kid, the best college for your money often boils down to a basic cost/benefit analysis.
College Cost / Benefit Analysis
Free Money Finance has a great cost/benefit analysis for undergraduate and grad school; one of his more popular articles is how he made millions on a $5,000 investment.
His philosophy is to match the cost of the education with the earning potential upon graduation. This also ties into the degree that you choose. Many people choose degrees in subjects that interest them, but they fail to think about how to apply those degrees to a real-life career.
For example, if you spend $100,000 on a four year undergraduate degree to earn $30,000 a year. It will most likely take you 5, 10, or even 15 years to pay off your education. In comparison, if you spend $50,000 on a four year undergraduate degree to make $60,000 a year, then you’ll be able to pay back those student loans much faster.
College Cost Example
My wife is a great example of getting an education that pays off. She received her undergraduate degree in health sciences from the University of Florida and was about $9,000 in debt from it. Then, she did a two years master’s program to become a physician assistant through UF’s physician assistant program. Her starting salary was well over $70,000. She spent $40,000 to make double the investment.
Private College versus Public College
I am a strong proponent of public colleges in terms of the value of the education based on the cost. If your parents do not have a college savings fund for you, and you will be taking out student loans to pay for your undergraduate education, there is no financial reason to pay private college tuition.
In my opinion, the value of an undergraduate degrees is not based on which school it came from, it’s more about how YOU use the skills you learned while earning the degree. Graduate degrees on the other hand are a little different, prestige still seems to matter quite a bit. Here are some interesting facts taken from a salary report from payscale.com.
Dartmouth College graduates have the highest median salary in the country with a Total Cash Compensation of $134,000
Dartmouth is a private school, so they would be an exception to the rule that you may want to consider paying the high priced tuition with high earning potential.
The University of California Berkeley is the state school with the highest Median Total Cash Compensation of $112,000
Cal-Berkeley is one of the best public schools in terms of a cost/beneift approach.
Chemical Engineering is the most lucrative college major with a median Total Cash Compensation of $107,000
If you have the mind for this stuff, and it interests you, then by all means pursue it. But, don’t pick chemical engineering as your major just for the money. Engineering could be the most boring thing you ever do if you are not passionate about it.
Harvard College graduates frequently enter not for profit positions
This is an interesting one, and don’t think that working in a non-profit environment always means that you’re taking a pay cut.
Major state universities provide exceptional value, with median salaries of graduates in the top 5 in their states, just behind highly selective national universities and colleges (e.g., Rutgers in New Jersey, University of Texas, University of Washington, University of Virginia)
No surprise here. If you live in these states, and I would definitely throw Florida into the mix, consider state school first, because the education is just as good as their private schools at a much cheaper price.
Best Colleges
Here are a few lists of the best colleges from Payscale, US News, and Forbes:
- PayScale’s Best Colleges (Party schools w/high earning potential)
- US News Best Colleges for 2009
- Forbes List of Best Colleges for 2008
Affordable Colleges
Don’t take your decision for choosing a college lightly. I learned the hard way, and I chose a school that I could not afford my freshman year. I ended up coming back home a year and a half later and tons of debt. I got my act together, went the community college route, and ended up graduating from the University of Florida.
I accumulated $18,000 of debt in the first 18 months; and then only $4,000 over the next 3 years. Don’t make the mistake of going for prestige and small classroom size if you can’t afford it.
College Finances
Attending college can certainly be one of the most life changing experiences of a young person’s life. Out on your own, it’s the first time you must depend on your personal responsibility skills.
It’s a time that can make or break your financial future so when looking for a college and choosing a college major, getting the best education possible at the best price possible should be one of your main goals.
Best Travel Websites
The best travel websites help you find cheap airline tickets or hotel reservations with the least amount of hassle. Here are some of the things we look for in a travel website, whether using it to book a vacation or business travel:
- Lowest price on hotel rooms and airline tickets
- Easy to search and compare prices and features
- Ability to track prices on hotels or airline flights
- Easy signup and payment process
- Good overview of seasonal and last minute deals
Here are some of the best travel websites that meet some combination of these criteria:
Orbitz.com – Orbitz is known for it’s ability to find the lowest prices on flights, hotel rooms, car rentals; and combinations of the three. It’s interface makes it easy to compare prices; one of the things I like about Orbitz is that they show the total price, including taxes and fees, when comparing prices.
They also have an interesting feature called “Price Assurance”, where they promise to find you the lowest fare or give you an automatic cash refund. Here are some more details on how it works from the Orbitz site.
“Once you book a flight on Orbitz, we start tracking to see if another customer subsequently books the same flight on Orbitz at a lower price.
If that happens, we’ll issue a refund for the difference, between $5 and $250 per traveler. We’ll continue tracking until the day you fly. So each time the price drops and another customer subsequently books your same itinerary for a lower fare, your refund amount will increase.”
Expedia.com – Expedia is known for it’s breadth of vacation and travel deals, covering flights, lodgings, cruises, vacation packages, and rental cars. Expedia also offer deals on activities and excursions once you’ve arrived at your travel destination and they have a rewards program called the ThankYou Network.
Another useful feature to help save some money is the Fare Comparison Calendar that suggests travel dates that offer lower prices.
Travelocity.com – Travelocity has many of the same features as Expedia, letting you find good deals on flights, hotels, cars, cruises, and activities. Everyone probably knows the traveling Travelocity gnome by now from their commercials.
One of the things I like about Travelocity are the destinations guides they offer from Frommer’s travel, covering cities around the world. Their traveler reviews can also be helpful when trying to choose a hotel.
Kayak.com – Kayak’s interface is really slick. They really do a good job making it easy to filter and compare search results. All from one page, Kayak offers multiple different views of the results, lets you filter the results based on flight times, airlines, airports, layovers, trip length, and price. In addition, Kayak also has a feature where you can compare search results against Priceline, Expedia, and Travelocity.
Priceline.com – Priceline is known for it’s unique feature of letting you choose the price you’re willing to pay for hotels, airline tickets, cruises, and car rentals. Everyone I know that’s used it has a great story of how they got a nice hotel room for a bargain.
Our story is that we found a room on the upper West Side of Manhattan right off a subway line for real steal. A buddy at work saved a ton on a room right on Times Square. Of course companies don’t have to accept your bid but if declined they allow you to bid again after a few days.
Best Cities to Live In
The best place to live is obviously a personal decision based on a wide variety of factors but there are certainly common elements that most of us look for when choosing where we want to live. Money magazine and Kiplinger magazine did some research in these areas and came up with a list of the best places to live in the United States.
Rating Top Cities
As you will see, each list took a different approach. Money Magazine seemed to go for small towns that are near big cities, and Kiplinger’s went with larger cities, assuming that you would live somewhere near that big city. So, what goes into rating a city for being the best place to live? Here are some of the criteria the publications used to rate the cities.
- Job Opportunities
- Strength/Weakness of the Housing Market
- Average price for a single family home
- Median salary per household
- Crime Rate
- Pollution Rate
- Education Ratings
Money Magazine Top Ten
- Plymouth, MN
- Fort Collins, CO
- Naperville, IL
- Irvine, CA
- Franklin Township, NJ
- Norman, OK
- Round Rock, TX
- Columbia/Ellicott City, MD
- Overland Park, KS
- Fishers, IN
I am not too familiar with any of these towns, except Fort Collins, Colorado. I have heard that is a great city to live. By looking at this list though, I know that many of these town are near bigger cities where jobs are plentiful and the cost of living is not outrageous, with the exception of Irvine, California.
Norman, Oklahoma most likely made the list, because that is the home of the University of Oklahoma. Anyone who lives in a nice college town where the town revolves around the university knows that it is a fun place to live. The university provides a ton of jobs, there is always something to do, and the athletic events make a great weekend for families.
Kiplinger’s Magazine Top Ten
- Houston, TX
- Raleigh, NC
- Omaha, NE
- Boise, ID
- Colorado Springs, CO
- Austin, TX
- Fayetteville, AR
- Sacramento, CA
- Des Moines, IA
- Provo, UT
I am definitely more familiar with these cities, because Kiplinger’s went with rating larger cities. Raleigh is a great town, but there are some unsavory parts to it, as there are in any big city. What’s great about Raleigh is that you have Duke University and University of North Carolina just miles away from each other. Plus, the health care is world class in Raleigh.
I’ve heard great things about Austin, Boise, and Colorado Springs. If you are in the IT field and you love to go out at night, then Austin is the place for you. They have something going on all the time, and their IT jobs are plentiful.
The Best Cities Near Me
CNN Money rated Coral Springs, Miramar, and Weston in the top 100 best cities to live in Florida. Personally, I would not have picked these three town to represent Florida in the top 100.
I was born and raised in South Florida, and all three of these towns lie in Broward and Dade counties, which are the busiest, most crime ridden counties in the state. I would have chosen Bradenton, Gainesville, and Palm Beach Gardens over these three towns. The most important factors for me are crime rate, job opportunities, and things to do. I want to be safe, have plenty of options for jobs, and I don’t want to be bored where I live.
Your Favorite City
What are you most concerned about when picking a place to live? What do you think about these lists for best places to live? We’d like to hear from you, and you can also brag about your town, if you want. But, be prepared to defend it, because this tends to be a spirited debate : )
Giving You What You Want?
I know your time is valuable and that you have many different sites to choose from when it comes to personal finance topics so I really appreciate all of you that read Money Smart Life on a regular basis.
Writing Useful Articles
We do our best to write about relevant topics and deliver on the goal of the site, “Money Tips & Advice for a Better Life”. I never thought when I started the site that I’d be wrestling with the issue of which topics to cover. I thought over time I might run out of things to talk about but actually the opposite has happened.
I always have many more things I’d like to cover than time in the day allows. I also worry about making sure we write on topics that are useful to you. I remember my dad told me a saying when I was a kid that I think came from Abraham Linocln.
“You can please some of the people some of the time. And you can please all of the people some of the time. But you can’t please all of the people all of the time.”
Of course president Lincoln had a lot more to worry about than picking the right articles but I think the concept holds true for most things in life. However, I still would like to strive for “all of the people, all of the time” even if it’s difficult to achieve.
Relevant Topics for You
My solution so far to my myriad of ideas has been to create new sections of the site when I have a topic I’d like to cover that might not apply to the majority. For example a while back, I added a deals section that covers promotions, free trials, and free stuff; as well as a credit card review section.
I’ve always wanted to cover small business topics but didn’t want to flood your inbox with business articles if you’re just looking for personal finance information so not too long ago I started the small business portion. I also wanted to learn more about stock trading so I teamed up with a guy who’s been doing it for a living for the last 10 years to write about that as well.
Does it make sense to juggle all these different topics at once? Perhaps not, maybe the site would be better if I just focused on personal finance, but at least with my current approach I feel I’m giving you the ability to pick and choose which topics you’re interested in.
My Apologies
Of course, when juggling several balls, you’re bound to drop a few some times. Yesterday some of you may have recieved an un-edited article in your email inbox or feedreader on the topic of over and under trading stocks. That was a mistake on my part and I apologize if you decided to wade through the unedited version.
Site Updates
Of course one of the drawbacks to spreading the content out across multiple sections like this is that it’s a little harder for you to stay updated on all the various topics at once. Here are some of the links you can use to subscribe to updates from the different sections of the site:
Money Smart Life – Daily updates on personal finance – Subscribe
Deals, Promotions, & Free Stuff – Subscribe
Small Business Success – Subscribe
FNBO Direct Online Saving & Spending Survey
An FNBO Direct survey of online savings account customers found that money issues and debt were the top holiday stress. Here are some of the results of the FNBO Direct survey:
- 79% – Economy will impact their holiday spending
- 67% – Still paying off holiday spending from last year
- 33% – Money is biggest stress for the holiday season
Money Stress
We all know how stressful family gatherings, travel, and entertaining guests over the holidays can be, I know National Lampoons Christmas vacation is just a movie but I bet it hit home for a lot of people.
Despite the tensions and challenges of family issues over the holidays the largest group of respondents reported that money was the biggest source of stress. Of course this didn’t come as a surprise given the current economy but I was surprised by the 67% of people who were still paying off last year’s holiday spending.
Savings Accounts
FNBO Direct reminds their customers that the best way to get a jump on avoiding holiday debt next year is to start a Christmas fund ahead of time. Of course, saving money is one part of it but simply spending less is certainly another part of the solution.
While they suggest setting up direct deposit into an FNBO Direct online savings account, the most important point isn’t which bank you use, but rather the fact that you start saving early and don’t spend more than you save.
Zecco Review – Free Trades & Online Trading Fees
This Zecco review is looking at the online brokerage account options offered by Zecco, today’s topic is Zecco’s online trading fees and how they can offer free trades.
Free Stock Trades
If you have a balance of $25,000 Zecco gives you 10 free stock trades every month. Many people wonder how Zecco can just give away free trades, well the cost of executing a trade has become very low. (Zecco’s cheeky line: “Shows you how much those other brokerages are making off you with their fat commissions.”) Zecco admits it still loses some money giving investors free stock trades but they make their money in other ways, which we’ll look at below.
Stock Trades
Once you’ve made your free 10 stock trades for the month, Zecco charges you $4.50 for each additional trade.
Options Trades
For options trading, Zecco charges $4.50 per leg and 50¢ per contract. Although Zecco does charge for options, the company says on its web site; “we challenge you to find a better deal than that.”
Margin Accounts
If customers opt to borrow margin and leverage their investments, Zecco makes money on the interest.
Cash Balance
If customers leave money hanging out in their cash account while they are deciding what to invest in, Zecco makes a little interest on that money. But as the company adds; “And you do too”.
Advanced Tools
Some more advanced tools on Zecco’s site are not free. The company says that it provides them as a premium service to interested customers.
Website Ads
Zecco says it earns a small amount of money by allowing other companies to advertise on its site. Again, the company has a reason; “Sometimes, you might even see a competitor’s ad sneak in. We don’t care though – we challenge you to find a better deal.”
Affording Free Stock Trades
Everyone knows the saying, “there’s no such thing as a free lunch”, so of course some people are skeptical when they hear about companies giving away things for free. Hopefully, this section of the Zecco review has explained how it is they can afford to offer free trades.
Opening a Zecco Account
Next time we’ll take a look at the process of opening a brokerage account with Zecco.
What Are Your Tax Questions About Buying and Selling Stocks?
Investing in the stock market has been a roller coaster ride for most people this year. With all the buying and selling of stocks and mutual funds triggered by the crazy markets, I’ve been hearing a lot of general questions about how the market will affect people’s taxes for the year.
It was one of the common questions I saw when we did our stock investing survey (as an update we’re still working on the stock trading information).
I’m working with a CPA to put together some information that explains the tax implications of selling your investments. If you have any topics about taxes and investing that you’d like addressed, ask them via the contact form. We can’t directly answer any specific questions but if you let me know what you’re struggling with maybe we can address the topic in the guide.
Thanks!
Lose Weight for Cheap Before New Years
Lose weight over the Holidays? Is it possible to avoid weight gain during Christmas time when you’re surrounded by chocolate treats and holiday parties? Of course!
Weight loss isn’t something that you have to put off until your New Years Resolutions, using the tips below you can actually lose pounds without expensive diets or gym memberships this holiday.
Drink Lots of Water
I’ve stopped drinking soda for at least a month. and hopefully I will drastically reduce my intake altogether. Soda is just liquid sugar and carbohydrates. Carbohydrates that are not burned off will turn into fat.
I use a Brita filter, so my water is essentially free. I do buy a 12 pack of bottled water for on-the-go situations, but I am definitely saving money by not buying soda for the house and by not buying it at a restaurant.
Follow A Home Work-Out Plan
If you’re looking for some ways to get some exercise during the winter months, Men’s Health has many different workout plans you can follow at home with a minimal amount of equipment. These are good for either women or men.
Typically, all you need to perform a great workout at home are two sets of dumbbells, a medicine ball, and a weight bench. Getting in a cardiovascular workout doesn’t have to require a membership to a gym. You can jog, ride a stationary bike, take a long walk, or play your favorite sport. If you want to stay out of the cold, join the mall walkers.
Take Control of Your Snacking
If you are like me, you find yourself wanting to snack all the time. They aren’t big snacks, but the calories certainly add up.
A common piece of advice suggests two snacks per day. A snack in between lunch and dinner, and an after-dinner snack. Snacks are not a bad thing if used properly. They help you curb hunger until the next big meal, which helps you eat less at your next meal.
The problem is that many of us snack on foods that are high in carbs, sugar, and calories, but low in protein and fat. Peanuts are a great snack, because they are packed with protein and curb your hunger for a longer period of time. A couple of pieces of cooked chicken strips or a piece of cheese with a few crackers are all good snacks that will curb your hunger much longer than a bag of chips or a piece of chocolate.
Limit Your Holiday Party Eating
This is where I have a lot of problems during the holidays. I attend about 5 or 6 different parties, and they are almost always hot and cold finger foods. I would much rather have someone hand me a plate of food, and say, this is all you get. Instead, I go back to the buffet table four or five times, because I have nothing else to do but eat.
If it’s your own party, include some activities to keep your company occupied. This will help yourself and your guests not eat so much. If you are at someone else’s party, work on your personal skills and strike up a conversation with someone you normally do not talk to. This will take your mind off of going back five times for more food.
You can also bring along your own healthy side dish that you know isn’t full of fat and calories.
Drink Fewer Calories
If you have a few holiday drinks, you’re probably drinking yourself to a bigger belly and butt : ) Drinking alcohol is one of the worst ways to eat empty calories. There’s no nutritional value, and you don’t even realize how many calories you’re taking in. Not too mention, alcohol can be expensive, especially if you’re buying it out at a restaurant or bar.
I love dark beers, but unfortunately they have the most calories. If you’re a dark beer drinker, try to limit yourself to two drinks. From a calorie standpoint it’s best to go with lower carb light beers.
When it comes to liquor, it’s more about what you mix it with. Try mixing it with tonic water or a diet soda. Some mixed drinks are loaded with sugar to mask the alcohol in it. This is an easy way to eat 100 to 250 calories per drink.
Target Body Weight
So, are you ready to shed off a few pounds? Find out what your target weight should be by calculating your BMI. According to the BMI calculator, based on my current height and weight, I am overweight.
If you saw me, you would say, “You don’t look overweight at all”. I think that’s because our culture cares more about what you look like in clothes rather than hard scientific calculations about weight. Plus many of us are at least a little overweight so can kind of grow accustomed to it.
Holiday Weight Loss
Of course I’m not trying to give you a complex that you’re overweight when you thought you were doing fine. Just remember weight gain can be a slow creeping process that sneaks up on you, especially this time of year!
So lose some weight during the Holidays this year and put yourself ahead of the game when it comes time for New Years weight loss resolutions!
Seven Cheap Foods to Serve At Your Holiday Party
Some of you will be planning a holiday party in the next three weeks, and you will find out that throwing a holiday party can be expensive! As you probably know food is often the centerpiece of any good holiday party.
Putting some careful thought into your menu will help you save a lot of money. I’ve been called a party food snob, I don’t like going to parties that look like no one put any thought into the food. However, cheap dishes don’t need to look like cheap dishes. Here are seven ideas for dishes to serve at your holiday party that look nice and won’t break the bank.
Chocolate Fondue: Melt some milk chocolate and add light cream and vanilla extract to keep the chocolate from getting lumpy. Then, pick four items as dippers. Serve the fondue in a cool dish, and you’ve got a great dessert that looks like a professional did it.
Mini Crab Cakes: Look for a recipe online to make these wonderful appetizers. The only pricey part of this dish is the crab meat, and the rest is chopped vegetables, mayonnaise and bread crumbs.
Chili: Most people love chili, and it’s easy and cheap to make. Use your favorite recipe, and serve it in punch-style, plastic cups. To give it some extra flare, provide all of the extras such as oyster crackers, sour cream, cheese, and croutons.
Baked Brie: Make a baked ball of brie in the oven with your choice of topping to bake it with. Almonds are always a good choice. Instead of serving it with crackers, use fresh slices of french bread.
Chocolate Covered Strawberries: If you don’t do chocolate fondue, then you can easily make chocolate covered strawberries for an elegant look and a crowd favorite. To keep this dish cheaper, look for strawberries in bulk at your local farmer’s market or produce stand.
Spinach and Artichoke Dip: All of these ingredients are cheap and the recipe is nothing more than throwing a bunch of ingredients together and baking it. It’s one of my favorite dips. Serve it with pumpernickel bread cubes and/or crackers.
Pigs In a Blanket: Okay, this one might not look to elegant when you serve it, but they are always one of the first items gone when we make them at parties. To dress this dish up a little bit, offer different dipping sauces like honey dijon dressing, honey mustard, ranch dressing, and nacho cheese.
So, are you hungry yet? I can’t wait for the upcoming holiday parties! I guess I’ll be doing a lot of working out after the holidays : ) In fact, there are ways to eat healthy on a budget during the holidays, we’ll talk about that tomorrow.
Enter Your Email below to request free access to the member newsletter and article updates.
I'm Ben Edwards and I've been addicted to personal finance since I was 12 years old.
That passion for money has paid off for my family - so in 2006 I founded Money Smart Life to help you afford the life that you want. Read My Story...
