Using an online savings account is a great idea for those who want an efficient way to save their money. CIT Bank and ING Direct are both safe and secure online saving options for those who want to save more without the temptation to spend more. Both use the checking account you initially signed up with to establish a link, making it easy to transfer funds between the two accounts. Here’s a look at two key differences in APY (annual percentage yield; interest) and account fees so you can pick the right savings account for you:
- APY. Currently, ING Direct is offering an APY of .80% for any amount, while CIT Bank offers .90% for over $100 and 1.05% for over $25,000. With ING, interest is accrued daily, compounded monthly, and credited at the end of each month. CIT Bank’s interest is accrued and compounded daily, and credited monthly.
- Account fees. CIT Bank requires a $100 opening deposit for their savings account, and the same amount to maintain the account. ING Direct has no opening or maintaining balance requirements.
If you’re looking for the highest APY, CIT Bank is the way to go; however, if you want to sacrifice some interest for the ability to keep under $100 in the account, ING Direct has absolutely no fees or requirements. Check out our online savings comparison page to get all the details on each of these accounts, read the full reviews and see how they compare next to other banks.