An online savings account is a great way to have the money when you need it, while continuing to earn higher interest rates than traditional savings accounts that you can find in most banks. They should not act as your retirement account, but there is no reason your money for emergencies or short-term financial goals should not grow when it is sitting in a savings account.
The best online bank to save money
There a number of major online banks offering competitive APY returns on your money. Currently, CDs are not offering much in return so they hold onto your money for years (in some cases) and charge you a penalty if you need to make an early withdrawal. Here are two of your best options for online savings account:
Online Savings Account Best Overall: Ally
Ally is all about without any conditions. There are no monthly fees or minimum balance to maintain to keep the account active. You do not even need a minimum deposit to open an account! You will earn 0.99% APY on your money, and by law, you can make up to six withdrawals per month free (after that it will cost $ 10 per withdrawal). As our best savings account, Ally offers a fantastic opportunity for anyone to save money, if you have $ 100 or $ 100,000.
Best Online Savings Account for those who have a higher balance: EverBank
EverBank is an attractive option because it will give you 1.40% APY for the first six months after opening an account and 1.01% thereafter. EverBank is best suited for those who have at least $ 5000 they want to save because there is a monthly fee of $ 8.95 for those whose accounts fall below that amount. You will also need $ 1,500 to open an account, and you can make six withdrawals free each month. It will cost $ 10 for removal after. If you have a lot to save and want the freedom to access it if you need it is difficult to beat EverBank.
More on online savings accounts and how to save money on our savings exam page online.