NextAdvisor.com reviews the best online savings accounts

Posted by Caitlin on September 23rd, 2009

An online savings account is one of the easiest ways to make the most of your money. Like a traditional savings account at your local bank, an online savings account allows you to store your money safely while also earning interest, offering guaranteed returns without risk. However, since online banks conduct business over the Internet rather than in brick and mortar locations, they are able to save on operating costs. Online banks can then pass that savings on to customers in the form of higher interest rates than those offered by traditional banks.

While a high annual percentage yield is obviously important, rates fluctuate over time. There are several other factors to consider when selecting an online bank. Some banks with the highest rates also have many strings and conditions, such as a high minimum balance requirement, or an APY that shifts based on your balance or drops dramatically after an initial promotional period. The quality and availability of an online bank's customer service should also be taken into account, as well as the ease and convenience of the online banking interface.

That's why NextAdvisor.com has reviewed and compared several of the best online savings accounts. We've also created a frequently asked questions page to help educate consumers. To learn more, take a look at our new online savings account reviews and comparison chart.