Today is BANK ON IT at the Money Kings! Given all the interest rate cuts lately, I decided to evaluate the major players in the high interest savings accounts market to ensure that I was still getting a good interest rate. For your benefit, I am sharing through this post what I reviewed to be the current interest rates paid at the major online savings accounts. All information is current as of 01/26/2008.

HSBC Direct - 4.25%

HSBC emailed me on 12/20/07 to notify me that they dropped the rate on their online savings accounts. They haven’t seemed to change it with the latest fed rate changes as their website is still showing 4.25% today. HSBC is still the online savings account I use for my personal savings and emergency fund. I have been extremely happy with their web interface and the bank to bank transfers for depositing and withdrawing money. Plus it has no monthly fees, no minimum balances, and an ATM card attached to the account.

ING DIRECT – 3.65%

On 01/23/08, ING sent me an email stating that the interest rate on ING DIRECT's Orange Savings Account has changed to 3.65% APY.

FNBO Direct – 4.30%

As of this writing, FNBO Direct’s website is showing an APY of 4.30%. They also advertise no fees or minimum balance requirements.

Emigrant Direct – 4.30%

As of this writing, Emigrant Direct’s website is also showing an APY of 4.30%. Additional features noted with their accounts are no fees or minimum balance requirements.

iGObanking.com – 4.50%

iGObanking.com seems to be paying a little more than any of the other major players with their online savings account advertised at 4.50%. Again, they have the typical no fees and no minimum balance requirements.

WTDirect – 4.30% *on balances more than $10,000

WTDirect (Wilmington Trust) has published on their website that they will pay 4.30% APY on balances $10,000 or greater. This account doesn’t seem to be a good choice if you’ll ever go below the $10,000 balance though, as the fine print states the APY goes down to 0.50% then.

Citibank Direct –3.75% or 4.50%

Citibank seems to have a great rate published on the surface from a big bank name. However the fine print shows that they have many more requirements than the other online banks above. In order to qualify for the 4.50%, you must read the fine print which currently says “To qualify for the higher rate, you must make at least two electronic bill payments, through Citibank® Online, Citi Mobile(SM) or Citiphone Banking®, from your linked checking account during the calendar month preceding the statement cycle date.” If you don’t meet the electronic bill payment requirements, the rate is then 3.75%.

E*Trade – 4.40%

E*Trade seems to offer the traditional features of an online savings account with no minimums or fees. As of 01/26/08, their published interest rate on their Complete Savings Account product is 4.40%.

Chase Traditional Savings – 0.25%

No wonder why I don’t keep much money in my Chase Savings Account. Today I looked at the rate paid, and with my meager balance of $3,500 it is paying 0.25%.

Hopefully this helps you see how your savings account interest rate stacks up against the many other options out there. For now, I am personally sticking with HSBC Direct. I’ve been happy with them, and it doesn’t seem worth the hassle of switching banks for a minor interest rate increase. If you know of any better online savings accounts, savings at local credit unions, etc that is worth mentioning, then please tell us!

Keep saving soldiers!

The Money Kings

Keywords: high yield savings, interest, HSBC, ING, FNBO, emigrant, igobanking, wtdirect, citibank, etrade, chase