Not all high interest savings accounts or money market accounts are alike. If you look at it from the standpoint of savers who decide to open such high yield savings accounts, you’ll find that we’re all prompted to select such accounts according to various reasons and criteria. Let’s take a look at some of the more popular savings products around:
Best High Yield Savings & Checking Accounts
Based on where we are in our lives, we tend to choose accounts according to specific requirements. Younger people in their 20′s may be particularly interested in what kind of returns to expect from their savings, and whether an account has an associated debit card or ATM bank card. Older people with some money tucked away will be more interested in the ability to easily move their money around and between accounts — perhaps from cash accounts to investment accounts and vice versa. In this case, they’d be more interested in online bank account features such as ACH, wiring and account linking.
Given these concerns, I thought it would be good to present this comparison table that shows how various high yield savings accounts rank and score on a variety of characteristics and features. I sourced this data from a couple of reports (from WTDirect and EverBank, in particular).
|Top Savings Account||EverBank||Ally Bank||FNBO Direct||ING Direct||WTDirect|
|Rates / Balances|
|APY (as of 1/09/12)||.91%||.89%||0.70%||.90%||1.11%|
|Live Person Answering Phone||Yes||Yes||Yes||Yes||Yes|
|Mobile Banking Availability||Yes||No||No||Yes||Yes|
|Account Types / Transfers|
|Totten Trust Accounts Offered||Yes||Yes||Yes||No||Yes|
|# of External Bank Links||Unlimited||Unlimited||3||3||Unlimited|
|Next Day ACH Transfer||No||No||No||Yes|
|Can Initiate Transfers From Another Bank||Yes||Yes||Yes||No||Yes|
Personal Savings Rates: Some Observations
These days, many of us question the interest rates that are earned in these popular high yield savings accounts — could you even consider these to be “high yield” returns? I’ve often mentioned that the term “high yield” is used relatively, because you’ll find most rates at banks and financial institutions to be set at even lower levels, resulting in an average APY of 1.001% for money market and savings accounts.
Granted, our current interest rate climate is not the most exciting at this time, but the expectation here is that our savings account rates won’t be staying down for too long.
Also, the good news is that these low returns have not fazed us, as a nation. The U.S. personal saving rate (or how much money we sock away each year) has doubled over the past few years compared to how it used to be. Here’s a chart that shows this information.
Clearly, the state of the economy and the credit industry has had quite an impact on how we save as a nation. Question is, will this positive savings trend continue once our economy fully recovers or will we return to our spending ways as soon as we see an upswing?
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