Online Banking Accounts

Posted by Shelley Elmblad Nov 1, 2007

Alright, I have an admission to make as I hang my head in shame: I, the personal budgeting feature writer, have allowed my daughter's savings account to languish at a local bank while it collects 0.5% interest.

This week, I will move this savings account to an account at an online bank. Why would I want to use an online bank? Primarily for the higher interest rates these banks are offering - up to 5%, which is a significant difference compared to what a savings account earns at the local bank we are using.

This Week's Best Online Savings Account Offers:

FNBO Direct

• 5.05% APR
• No minimum balance

Emigrant Direct

• 4.75% APR
• No fees, no minimum balance

WaMu - Washington Mutual

• 5% APR
• $300 minimum balance or $4/month service fee
• Avoid minimum balance/fee requirement if you open a WaMu free Checking Account™.

More Info: Online Banking - Get the Facts | How to Choose a Bank