Best "high-interest" savings account

[ameliabedelia]

I'm looking to put about 10,000 into a high-interst savings account. It is something we will likely have to dip into the money for within a few years (possibly earlier) however I would like to keep the money separate from our checking account (so as to promote savings it).

I was looking into Ally Bank

Anyone know anything about them? From everything I've read they have really good reviews and basically what we are looking for. Someplace where I can easily transfer money into (from our regular checking account) and take money out on an as-needed but hopefully infrequent basis.

[sunnysandiegan]

We had an Ally Bank account until last month. When I opened the account, the interest rate looked good. By the time the account actually got opened and our electronic deposit went into the account, the interest rate had dropped quite a bit. We had the account just a few months and the first month, the interest got credited at an appropriate time. The next two months, there were no interest credits at all. I called them. They said there was a glitch in the system and it would be credited would the problem was fixed. Some accounts were effected and some weren't. (That's the weird part.) It took 2-1/2 months before the interest was credited. As soon as it was, I transferred the money out and closed the account. I had to call twice in this process. I also had to call multiple times in the beginning because they had told me I could download our transactions to Quicken. I spoke to half a dozen people and none of them had a clue about this.

Anyway, Ally was/is owned by GMAC and once DH found out that, he wanted the money transferred out. I waited until our interest was credited first, though.

We liked Everbank for a short-term account we needed. The first three months earned a bonus interest rate and then the regular rate kicked in. Even the regular rate was comparable to other such accounts. Between Ally and Everbank, I'd open another Everbank account in a heartbeat.

We also really like our Capital One savings account through Costco. If you have a Costco membership, you get a bonus when you open and fund the account. (The amount is dependent on the current promotion and the type of membership you have.) Also, depending on your balance, you can earn an EXTRA quarterly bonus. You have to sign up through the Costco site links. It isn't advertised on Capital One's site, but they have other accounts that seemed reasonable if you do not have a Costco membership. The account was easy to set up and we haven't had any issues at all.

We also have ING Direct accounts. I really like ING for active accounts. The interface is super user-friendly and transfers are a breeze. Customer service is excellent so far.

I'm assuming from the way you quoted "high-interest" that you realize interest rates are low across-the-board. All of the above are the highest I could find this year.

[ameliabedelia]

Yes, I realize that all interst rates are low...but I figure that 1.5% is better than 1% or .5%. Thanks for your input on the ally bank account.

I was also looking at everbank, but I decided against it because they charge an 8.95/fee if your balance goes below 5,000, which I don't think will work for us.

I've read some good and bad things about ING, still looking at that.

We don't have costco around here, so I don't have a costco acocunt and can't get that Capital One account.

[MacroMama]

We use EmigrantDirect and are pretty happy with them. Right now they are doing 1.20% interest.

[HeatherAtHome]

We're happy with ING.

[newbymom05]

We've had an Ally savings account for about a year and have never had a problem with it. I transfer money in and out of it, no problems, never had a problem with interest accruing. I've called them about transfers and my 1099 and love they're accessible 24/7. All in all, I"m very happy with them--except for the 1.5% rate, of course.

[mnnice]

We just start an easygrow account. It's really more of a checking account, but the interest is good. We don't live in the state where the bank is located, that's been a non-issue, and we have had good customer service so far.

I always goof links up but I'll try. www.easygrowchecking.com

[akichan]

I've had ING for a few years now and it's always been reliable. They opened up a Cafe in the city that I"ve been meaning to check out. I hear they have on-site financial advisors.

[marimara]

We've had ING for years and have never had a problem with them, we really like them.

[MtBikeLover]

Couple of things that you can look at...

I have a high yield checking account at my credit union that pays 3% annually. Not a lot, but better than 1-1.5%. Have you checked your current bank to see if they have a money market account or a high yield account? A lot of times those types of accounts will pay higher interest.

Not sure whether you use a bank or a credit union, but a lot of times credit unions pay higher interest. My kids have a savings account and they get 1.5% interest and only have $1k in their accounts.

You could also look at opening up a CD. Rates don't seem very good on them though - only about 1%. Sometimes banks will offer deals though.

[karkli]

I agree with looking into low-balance money market accounts that might be available to you, though be aware that many require keeping minimum balances of $1k, $5k, $10k or more. If you plan to dip into the money, you would want to be sure your account has a low enough minimum balance limit that you won't risk leaving too little in the account.

As for savings account, I cast another vote for ING. I have had accounts with them for a couple years now and no troubles.

That said, keep in mind that the difference between 1% and 1.5% APY on $10,000 is only $50/year. $4.16/mo. It's possible that you would be better off with a local credit union that offers a slightly lower rate but more personal service, better convenience, etc.

[beachmommy5]

This site http://www.consumerismcommentary.com/rates/ is a good place to compare rates at most major banks that have online savings. Rates are low across the board, less than half of what they were two years ago.

I opened an account with Etrade a couple of years ago when rates were high, they are abysmal now but I'm hoping eventually they will rise across the board again, plus I'm two lazy to chase the rates since my account is a long term savings account.

[sunnysandiegan]

Here is a site with a summary of the top five online banks, just for information....

ETA: I don't know the date on the above linked article.

Here is another site with today's rates for online savings accounts (different types).