The Best Online Banks

Posted on 22. Jan, 2007 by in Credit & Debt, Saving & Investing

Just on the heels of the announcement of HSBC’s new and improved website (my favorite online bank), Kiplinger has come out with a short and concise look at what they call the best cyberbanks – and I agree with every single pick! (I know, hard to believe…)

Check out the list, and see if you agree.

BEST OVERALL ONLINE SAVINGS ACCOUNT
HSBC Direct www.hsbcdirect.com
Annual percentage yield: 5.05%
Why it’s the best: Quick customer service, an ATM card, a $1 minimum balance and typically one of the highest yields make this online savings account the one to keep.

SIMPLEST TO USE
ING Direct www.ingdirect.com
Annual percentage yield: 4.50%
Why it’s simplest: ING Direct’s streamlined Web site and four-step application are painless for even a Luddite. With no minimums and no monthly fees, ING Direct set the standard that other online banks follow (or should).

BEST FOR ACCESS TO FUNDS
E*Trade Financial www.etrade.com
Annual percentage yield: 5.05%
Why it’s the best: The most inconvenient aspect of online savings is the lag when you deposit money. It can average up to five days to clear a transaction after the initial deposit. But E*Trade users can access deposits on the same day.

BEST ONLINE CHECKING ACCOUNT
EverBank www.everbank.com
Annual percentage yield: Ranges from 3.25% for balances of less than $10,000 to 4.41% for $100,000 or more.
Why it’s the best: EverBank treats checking almost like savings. You need a minimum of $1,500 to open an account and enjoy an introductory rate of 6.01% for the first three months before it goes down to the market rate.

No comments.

Leave a Reply