Credit News and Advice

The Best High Yield Savings Accounts

Managing your credit cards wisely is one part of being smart financially, but saving money every month is perhaps even more important. Today, a number of online accounts offer high yield savings with rates up to 3.30% and no minimum deposit to open an account.

High yield savings accounts are bank accounts that you access entirely online (or via an ATM card). The bank can afford to pay you a much higher rate than normal savings accounts because they don’t have to handle in-person transactions, mail statements, or even maintain a branch in your neighborhood.

You simply transfer money into your high yield savings account from an existing checking account, make deposits as often as you like, and sit back and watch your savings grow. When you need to withdraw your funds, you can usually do so at an ATM, or transfer them back to another bank account–a process that simply takes 2-3 business days.

Recently, Kiplinger’s magazine voted FNBO Direct the best online savings account of 2008 for it’s ease of use, great interest rates, and $1 minimum required to open an account.

FNBO, or First National Bank of Omaha, has come onto the online, high yield savings account scene only in the past year, but shows a lot of promise.

Interested in learning more about high yield savings accounts or opening an account? Read these high yield savings account reviews »