How About 5.3% Interest On Your Savings?

Consumerism Commentary has an update on the current online checking and savings rates.

UFB Direct and OneUnitedBank are leading with 5.31% and 5.3% respectively. We’ve never heard of these two banks but their websites say they’re FDIC insured.

There’s 9 others on the list to check out, including the one we’ve got our dough in right now, HSBC.

Not included on this list is that ING Direct just started offering 4% on their checking.

You deserve much better than the .25% (or whatever the horrible number is) interest your savings is getting right now. Give an online checking and savings accounts a try. Your money will be working for you for once. — BEN POPKEN

Current Checking and Savings Account Rates [Consumerism Commentary]
(Photo: darkmatter)

Comments

Edit Your Comment

  1. SpookyET says:

    Washington Mutual gives you 5 percent if you open a savings and a chequeing account with them.

    Remember that you will not be getting that rate because it takes 3 bloody days to transfer from your checking account to the savings account in one of those banks. But, if it’s in an internal bank transfer, it takes 24 hours.

    So, it will take 24 hours to transfer from your WAMU chequeing to your WAMU savings account.

    If you live in the northeast, Citibank have the same deal as WAMU, but they require you to use your chequeing account to pay 3 bills or fees will be charged.

    USBC gives you 6%. There are better lists out there. I forgot the link.

  2. That Plain Boy says:

    With ING, your interest rate my increase over time. I’ve been a customer of theirs for about two years and my interest rate is now 4.5%. I get an email every quarter telling me what that quarter’s interest will be.

  3. LAGirl says:

    Washington Mutual has an online 1 year CD account that is earning 5.4% APR. a 6 month CD earns 5.1%. minimum opening balance is $1000. not too shabby.

  4. InterestShark says:

    Screw these rates, you can get 5.85% from demandnotes.com (GMAC) or get higher rates at prosper.com…

    Both are not FDIC insured but if you have over 100K, you should buy from TreasuryDirect.

    Sure GMAC is not FDIC insured but 51% of GMAC was sold to Cerberus.

  5. gershinator says:

    UFB Direct has been around for a while and the rate has been around for at least 6 months.

    They are in the process of being acquired by Sky Bank (don’t ask me), but I haven’t noticed any declines in rate or service.

    It’s a savings account – no checks, but the great thing is they will automatically refund ATM fees ($4.50 per month) and don’t charge ATM fees or minimum balance fees.

  6. Flexo says:

    Boy: Even though it’s not the highest paying account, I keep most of my money with ING Direct. They were first on the scene and I like their interface. Like Consumerist, I also keep cash at HSBC Direct, but I don’t like their customer service as much.

    LAGirl: You can find some high-paying CD accounts, but they’re in a different class than savings/money market accounts. They’re less liquid and often carry penalties if you want to withdraw your money before the maturity date.

    Consumerist: Thanks for the link!

  7. That Plain Boy says:

    Yeah, I’d also like to add that I really like ING. Like Flexo says, their UI is great, and I’ve had a problem once in the two years I’ve been a customer. They’re incredibly strict about having you identify yourself over the phone (and rightly so), but after they’re sure you are who you say you are, the reps are extremely helpful.

    The only complaint that I have is that it takes so long for deposits to become available. When you make a deposit from a checking account, ING will take the money from your checking account at midnight the day of the transaction; however, deposits don’t post to your account for ten (!) days. This is okay for a savings account, but with the new online-only checking account, I hope they’ve changed their policy.

  8. FLConsumer says:

    Don’t forget your friendly Credit Union. At the very least, they’ll definitely have better rates than your normal banks and you won’t be talking to some offshore phone rep when there’s a problem.

    My CU has shared branches which allow me to go to a physical credit union branch in just about every state of the union (Wachovia/BoA can’t say that). My CU’s offering 6 & 12 mo CDs @ 5.40%, only has a 30 day penalty on interest for early withdrawl, $500 minimum. Their Money Market accounts are 3.6%-4.6%, no limit on deposits/withdrawls per month. And deposits are available the same day as long as it’s made during business hours.

  9. Wells Fargo was offering me 0.25%. The worst in the industry, according to BankRate.

    When asked why I was closing my account, I informed them I had found a better interest rate elsewhere.

    “Oh? Perhaps we can beat it. What’s the rate?”
    “5.05%”
    “Wow. With who?”
    “HSBC Direct.”
    “Yeah, we can’t beat that.”

    HSBC has treated me really quite nicely, with prompt customer service, monthly interest disbursements, completely fee-free, $0 minimum savings accounts, TRANSFER-fee-free, both directions AND a very secure site that involves a two-step login system. It took a bit to set up initially, since I had to get a pin and id in the mail, in two separate letters, but every time I called with a question, I was off within 3 minutes, and had my answer.

    Plus, I received a great email from them a few months ago telling me they were INCREASING my rate to 5.05% from 4.95%. Brilliant, that.

  10. zolielo says:

    I also use HSBC as their finanial problems are seemingly in the past and the return is quite competitive. HSBC is the 3rd biggest private label credit card issuer : Best Buy, Costco, Neiman Marcus and Saks Fifth Avenue. With that being the case I have a bit more faith in their longevity.

  11. MeanMachine says:

    I’m sorry, but origami rings are NOT badass.

  12. packofwildhobos says:

    What about Discover Money Markets? I am getting 5.14% right now on more than 10K dollars but even the min balance of 2500 gets 4.31%. Just sayin.

  13. dwarf74 says:

    I’m not sure, with interest rates over 5% on a savings account, why I would want to put my money into most any kind of CD (at .05% or so added interest) or a money market with a minimum balance…

    I’m pleased as hell I am getting a good interest rate and keeping my funds liquid, all at once.

  14. tracilyns says:

    Yesterday when I was telling BofA where they could stick my money, I told the CSR that I had moved my money to a bank that could offer “free” checking and a decent interest rate on my balance. The CSR said “that’s ING, right?”

    Makes me wonder if they’re losing a lot of business to ING. Maybe they’ll learn that they’ve got craptastic service and change their ways. Probably not.

  15. I also keep cash at HSBC Direct, but I don’t like their customer service as much.

    How long did it take you to get your information in the mail? At this point I’m wondering if they ever intend to let me get to my money and I’m kicking myself for opening the account with anything more than a penny.

    HSBC’s customer service sucks ass and I would NEVER tell anyone to open an account with them.

  16. Brad900 says:

    In regards to checking accounts: While I would LOVE to have a much higher interest rate- I cannot walk away from Commerce Bank merely due to the fact that they rebate me all ATM fees.In addition- their customer service has been top notch. I recently relocated from the East coast to the West coast and they have been awesome with the transition (Which is impressive since they only have branches in the NY/NJ/PA metro area). Now if someone could give me a bank that has a 5% interest on both saving and checking and would rebate all ATM Fees- I’d make a beeline to their door!

  17. sarora529 says:

    AmTrustDirect is offering 5.36% with a min. balance of $5000. You can also pay all your bills and credit cards from that account. No reason to get a CD and have your money stuck for 6-12 mos.

  18. robertg says:

    Please don’t forget tax exempt money market accounts. If you are in a high tax bracket in a high tax state, Vanguard TE money market accounts can earn you a tax equivalent yield of nearly 6%.

  19. Elvisisdead says:

    USAA offers 5.2% in a first performance account, but it requires over 10K balance.

  20. mschlock says:

    I just opened an HSBC account a few weeks ago, and now that the dust has settled I’m pretty happy, but man, they need to iron out their signup process. None of the early emails I received gave me any clear indication of what I should expect next (like “In five days you’ll receive a password in the mail”) so it really left me hanging for a few days.

    For the record, here’s what happens:

    1. Sign up online, which includes giving them access to your checking account and giving them money out of it.

    2. Get a “Your account has been approved!” email with absolutely no helpful information in it such as “How do I get into my account and see what you’ve done with my money?” This email also manages to imply that you’ve done something wrong because it says “However, your account cannot be opened until you have finished the entire application process.” Of course, there is no way to tell whether you need to do something else next.

    3. Later that day, get another email indicating they have happily taken your initial deposit; still no info abut how you can access your money.

    4. THREE DAYS LATER, finally get an email with your temporary ID and a note that your PIN will be sent via snail mail.

    If I’d opened the account with any more than a dollar, I’d have spent those three days sweating. NOT a good initial customer experience.

    I sent them a pissy mail asking them to hire a UI designer, for pete’s sake, and their response was “Your account is open and your information was mailed on 02/26/2007.” Well then, I guess that solves it all, doesn’t it?

  21. I have had troubles opening an account with HSBC Direct as well. Pain in the ass. But overall I am sure it will be worth it.

    They have already turned me down once after transferring me to an unconfident sounding ‘security specialist’ whose number could not be verified when I called the main number. She asked me to fax quite some sensitive identity documents and after checking up on the information I faxed the info crossing my fingers and two weeks later she sent me an email stating that my application had been denied because she did not receive documentation proving that I am who I said that I was.

    Anybody have any tips for signing up with HSBC? I would love to give them my money but I dont think they want it.

  22. dpritch15 says:

    If you want 8-12%, try lending through prosper.com. The experience has completely exceeded my expectations. I have 30 loans out now with an average loan rate of 14%. Granted, the funds can be tied up for up to 3 years, but for those looking for a non-market correlated return, it can’t be beat. As long as you spread your loans, you can match the long-term return listed on the site for each credit grade; generally high single digits. I have no defaults to date. Feel free to drop in for more on how it works, how to avoid defaults, etc at everydayfinance. Currently, a $25 referral bonus for new members too. I just added a couple grand to my account, plowing the money in before the rest of the investing community figures it out and bids down the loans rates as normal supply/demand forces should dictate.