Which Online High-Yield Savings Account Is Best?

There’s been a raging “online savings account” debate going on at Get Rich Slowly, resulting in a valuable discussion in the comments.

Consumerist doesn’t favor any one account over the other (we just think you should save), but would like to mention that if you’re new to the savings game you do still have time (before April 30th) to plop some dough into a new HSBC account and earn 6%. That’s our $.02. —MEGHANN MARCO

Which Online High-Yield Savings Account is Best? [Get Rich Slowly]
(Photo: materialboy)

Comments

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  1. amazon says:

    I hope I end up with that change some day.

  2. FLConsumer says:

    “I before E except after C.” Yield, not Yeild.

  3. Meg Marco says:

    Rats.

  4. amazon says:

    @FLConsumer: “Or when sounding like ‘a’ as in ‘neighbour’ or ‘weigh’… unless it’s ‘weird'”. ;)

  5. squikysquiken says:

    It’s nice to post a link to the HSBC 6% account, but unfortunately, assuming you open an account today, by the time your money clears it will earn 6% for just the last few days of March, then back to 5%. Of course, I’m just bitter because I didn’t know of the 6% promotion in January :-)

  6. tvh2k says:

    From my experience (I have accounts at ED, HSBC, ING, and CapitalOne) they’re all about the same. HSBC is nice because you get an ATM card, and can quickly transfer money online to your HSBC checking account (instant transfer). ING has an “Electric Orange” checking account that does the same, but at only 3% APY (their savings account is low too). I’d pick HSBC first, followed by EmmigrantDirect (they give you 1.4% cash back on their credit card through Barclays if you maintain $10,000 balance in your savings account).

  7. Meg Marco says:

    I just want to say for the record that I’ve fixed the typo like 12 times and am beginning to lose hope. That is all.

  8. tvh2k says:

    Looks fixed to me ???

  9. I set up an HSBC account when I saw it in a Lifehacker post a few months ago. Getting it set up is a drawn out process, which is to be somewhat expected from a non brick and mortar institution. (It’s not as simple to verify identity, for example)

    But it seems like a good place to hold my money for now. I’m not sure I’d want to do a checking account with them, but the savings is working great. The website isn’t as friendly as the Chase page I’m used to, but then again, it’s a savings account, so I don’t need to do much more than verify its contents and add to it now and again. Even the non-promo rate interest rate is significantly greater than my old Chase savings account (.4%)

    I have an ATM card, though I haven’t used it. I haven’t seen an HSBC atm anywhere around here, so I don’t want to deal with fees. When I want to get the money back out, I’ll just transfer it back to my other account.

  10. I have ING Direct, it rocks!

  11. LatherRinseRepeat says:

    Washington Mutual has an online only promotion for 5% APR, when you open a new checking and savings account on their website. Existing WaMu customers qualify too, and you can link the new account to your existing account. Or you can close the existing account after you open this new one.

    From what I’ve read from other money sites, you can’t get this deal at an actual WaMu branch. The bank tellers will deny that this deal exists.

    https://online.wamu.com/direct/apply/page/StartApplication?appType=FC

  12. Flynn says:

    Ok, I just posted to the old post about this…but I’m confused. If these services don’t have brick & mortar locations, how do you deposit money into them? I currently bank with Chase & National City, and they both charge for electronic transfers to accounts that aren’t theirs. So, unless I’m dealing with a lot of money, the monthly charges to transfer money would override any benefits of good interest rates.

    How do most people handle this? If they give you an ATM card, can you deposit money in ANY atm, regardless of who owns the ATM? If not, how do you get money into the accounts, mail them checks?

  13. tjrchicago says:

    That’s funny, I have both Chase and National City accounts and have never paid a dime in transfer fees. I pay all my bills via Chase and move money from both Chase and National City into my ING account all the time.

  14. dohtem says:

    @Flynn: 2 ways. Electronic transfer and by check.

    ING has never charged me (nor has my B&M bank) to transfer money. If you want to take the risk, you could mail a check, payable to yourself, and they’ll deposit it in your account.

  15. dohtem says:

    @LatherRinseRepeat: Nice. I will have to try that tonite.

  16. synergy says:

    @Flynn: Electronically. They confirm your checking account number and routing number by depositing a couple of cents into it and then you can start using it to transfer money into the savings account.

    As 1337 4 L said, it is a drawn out process. I think from the time I signed up until my first deposit was confirmed, it was about 10 days. Whenever you deposit something, it’ll be 3 days before it’s considered officially in the savings account.

  17. I signed up with ING because of Consumerist. So far my only problem was losing my PIN, so I haven’t played with it yet. I got a $25 signing bonus too.

  18. skittlbrau says:

    as an account holder of both ing and hsbc direct, i can say ing is faster and more user friendly, and HSBC has an atm card. now ing does too, but didn’t when i signed up.

    really, there all better than the one at your bank paying .25%, but don’t stress out too much over 50 basis points. find the one you like and contribute a bit (even $10) each paycheck and you’re better off.

  19. ZonzoMaster says:

    are those mexican pesos in the picture? they look like $10 coins to me (the coins with a golden ring around the center).

  20. palaste says:

    @ZonzoMaster:
    They are Euro coins.