Q.
Is it true that online savings accounts have better interest rates than banks?
A.
A. Yes! Many online banks and savings programs offer interest rates around 1.5% higher than if you walked into the branch of your local bank and opened an account (last fall, they were almost 4% higher). This might not sound like a lot, but if you have $10,000 in savings, it could mean the difference between earning $250 instead of just $40 or $50.
ING Direct even lets you make sub-savings accounts with specific goals, like “Vacation to Thailand,” or “House down payment,” so you can budget your money.
You might also check out
Emigrant Direct and
HSBC Direct.
E-Trade is another great option because they pay your ATM fees no matter where you pull money out. And fear not: Credible online banks are FDIC insured, so you don’t have to worry about losing your dough.
Nestpert Ramit Sethi, author of I Will Teach You to be Rich and personal finance guru for companies like Deloitte, KPMG and Inte
-- The Nest Editors
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