best online savings accounts

Kiplinger’s Personal Finance, December 2009 issue, just announced that the Ally Bank Online Savings Account has been rated “Best Online Savings Account”.

This ranking recognizes the Best Bank Accounts that “combine higher yields and convenience.” Kiplinger’s chose to honor Ally Bank’s Online Savings Account because it requires “no minimum to open an account, no monthly fees and no minimum balance.”

They combine higher yields and convenience. A high-yield savings account at ALLY BANK, formerly GMAC Financial Services, yields 1.30% â€”far more than you’d get at most brick-and-mortar banks. And Ally Bank has no minimum to open an account, no monthly fees and no minimum balance. Plus, this FDIC-insured institution is one of the only online banks to offer penalty-free CDs, which give you the freedom to withdraw your money early without paying a fee.

Even with the current low interest rates, online savings accounts can still be a key place to hold your money. Continue reading…

If you have a vacation fund, down payment fund, or maybe money sitting in a low interest baring savings account… it might be worthy to consider transferring the money into one these online savings accounts. Historically, many of these online banks have carried high competitive savings rates. When the market does return, you’re gains will be potentially more substantial compared to a traditional savings account.

Here are a few key factors to consider in locating the best online savings accounts.
They are:

Rates – Who has the best Savings Account Interest Rates
Accessibility – If you want to withdrawl money, how long will it take?
Automatic savings plans – Can you set up an automatic system to deposit money from another account.
Additional products – When you wealth grows, can you diverify your funds in a Money Market account or CDs.
Customer Service – How hard is it to obtain a live person to answer your needs. *Peronally, I will shun a company from my list if I need to push too many buttons or cannot dial 0 to reach an operator.
Safety – Is the bank FDIC insured or what safety measure are in place.

Lets compare a few of the known banks available:

If you’re interested in a bank with high yields and greater convenience, then EverBank is the bank for you. The EverBank Yield Pledge(SM) Money Market Account gives you a higher interest rate plus access to your cash. Open a new account, and take advantage of EverBank’s 3-month bonus rate.