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Online Savings Accounts vs. Bank Savings Accounts

Updated on December 28, 2018
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I work in the medical imaging field, but I've also always had a passion for saving money and finance throughout my life.

My First Online Savings Account and Different Savings Options

In October of 2018 I decided we've had enough of the measly 0.10% interest we were earning on our emergency fund we have in our credit union savings account. Very commonly, savings interest rates are 0.01%, but can range anywhere from 0.01% to 0.50% if you are lucky.

Initially I had planned to open an account with Vio Bank that back in October had an interest rate of 2.15% APY, but I did one last search before opening our account and came across a slightly higher interest rate. After all of my research, I found an online savings account with a 2.25% APY through mysavingsdirect.com. In November of 2018, the interest rate on the savings account had increased to 2.35% APY. Now in December, it sits currently at 2.40% APY. I have put money into the account a couple of times with no issue. They do put a hold on deposits for 5 days though. I also tested a withdrawal to see how long it would take to process and get into my credit union checking account. I submitted a withdrawal of $100 on Thursday and it was in my checking account by Friday. I was pleasantly surprised that it only took one day.

Here are some of the Pros of My Savings Direct. There is no minimum balance, no monthly service fee, they are FDIC insured and highest interest rate with no minimum balance. This account seems easy to work with. You will find that most of the online savings accounts don't have a monthly service fee or minimum balance. Its just a matter of who has the most competitive interest rate. Do your research and pick an account you trust and feel comfortable with.

Other Popular or More Common Online Banks.

There are numerous other savings options online. I compared them all before making our choice to go with MySavingsDirect.com. Some of them have fees or minimum balances that can be annoying. Here is a list of other online savings options and their current interest rate (APY)


Barclay Online Savings: 2.20% APY. No monthly fees. No minimum balance to open. Just need to maintain a balance enough to earn $0.01 interest, which is essentially nothing.

Synchrony Bank High-Yield Savings: 2.20% APY. No monthly fees, No minimum balance.

Ally Online Savings: 2.00% APY. No monthly maintenance fees, No minimum balance.

Discover Online Savings: 2.00% APY. Also has no fees and no minimum balance.

Marcus Savings by Goldman Sachs: 2.05% APY. No monthly service fee, $1 minimum balance to earn interest.

Capital One 360: 1.00% APY. No fees, No minimum balance.

American Express Personal Savings: 2.10% APY. No Monthly Fees and No minimum balance.

Citizens Access: 2.25% APY. No Fees, but $5000 minimum balance to earn 2.25% interest. If balance is below $5000, then earns 0.25% APY.

HSBC Direct: 2.05% APY. No Fees, $1 minimum balance.

Vio Bank: 2.35% APY. No Monthly Fee, $100 minimum to open an account.

CIT Bank Online: 2.25% APY. No Monthly Fees, $100 minimum to open an account. In order to earn the 2.25% interest, you must either maintain a balance of $25,000 or more, or else make a monthly deposit of at least $100.


As you can see there are tons of options out there. There are even more that I have not listed here, but I believe this list includes at least the ten most popular accounts. I hope this helps you make a decision and get more from your savings account. Don't leave it in the bank earning nothing. Leaving it in the bank actually loses money when you account for inflation.


A quick poll about savings accounts

Do you have an online savings account?

See results

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