Is it true that online savings accounts have better interest rates than banks?
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
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
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