Oh how I miss ING Direct Orange online accounts with Checking and Savings accounts that earned more than 4.5% interest annually. Today, we barely get 1% in interest in our bank accounts. The upside to interest rates being so low is that interest charged on credit cards, student loans, car notes, mortgages and debt, in general, is also low. The downside is, our money sits in our bank accounts and credit unions growing minimally. But minimal is less than 0% growth, right???
I spent
the entire weekend chasing growth (“high-yield” checking accounts and savings accounts that generate more interest than I get now). What I realized is that online banks and those with a limited physical presence (branches, ATMs, etc.) offer relatively higher interest rates than the big banks like Chase, Citibank and Bank of America. So I moved my “rainy day” or I.C.E (in case of emergency) savings fund to a higher interest account that I won’t be tempted to touch. These are the 3 banks I looked into and a few highlights. Check the links for more details.
Ally Bank
+ no minimum balance to open
+ ATM fee rebates
+ no monthly maintenance fees
+ interest bearing checking account
+ competitive rates on Savings accounts
+/- online banking only
Charles Schwab
+ no minimum balance to open checking account
+ ATM fee rebates
+ interest bearing checking account
+ link to a Schwab brokerage account
Capital One 360
+ no minimums, no fees
+ access to ATMs
+ interest bearing checking account
+ mobile check deposits
Ally Bank was the most suitable for me. Which one seems the most suitable for you? If you found an even higher yielding account, please do share!