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Comparing Yields on the Top Savings Accounts


I thought it would be interesting to compare the APY rates of the top savings account for this year. If you're deciding on an online bank primarily due to its high interest rate, you want to know not only that its current rates are high, but also its history of rates has been high. So I've created a graph comparing savings account rates for three major players: ING Direct, EmigrantDirect, and HSBC Bank. My main criteria for these is that the accounts have no initial or balance minimums. There are a few other banks that may qualify such as UFB Direct. UFB Direct doesn't allow you to link its savings accout to an external checking so I excluded it (also I didn't want to over complicate the graph).

savings account rate comparsion
ING Direct is the granddaddy of this type of online savings account. It has been offering its no-minimum Orange Savings account for years.

EmigrantDirect just started offering its AmericanDream Savings Account around the start of the year. Its 3.00% APY was successful in getting attention. At this time, ING's savings account was only at 2.35%.

Then came HSBC's Online Savings account in March. For the first few months, HSBC's savings account offered rates comparable to ING.

Throughout the year, EmigrantDirect has maintained a lead over the other two. At the start of the year, EmigrantDirect was 0.65% above ING. But ING has been consistent in raising rates. Currently, ING is only 0.20% under EmigrantDirect. In the last two months, HSBC has gone past ING, and as of yesterday has even gone past EmigrantDirect.

Note, I had to review several sources to retreive this history of interest rates. I might have missed a few changes. Also, some of the dates may be a little off. Feel free to leave a comment if there's something that I missed.

  |     |   Comment #2
For someone who is very inept when it comes to financial planning can you advise me on the following. I read your info. on on-line savings opportunities but I can also go to my locate bank to open a savings acct. Here is my question, am I wiser to open an on-line savings acct. then to go locally? Is the interest far better for me on-line. Thank you for your time!
Banking Guy
  |     |   Comment #3
Yup, the interest rates online are far better. I think the average savings account rate for brick-and-mortar banks is only around 0.5%. EmigrantDirect now offers 4%. See my latest Banking deals summary for a link to info on EmigrantDirect.
  |     |   Comment #5
I recently came across your post and have been reading along. I thought I would leave my first comment. I don't know what to say except that it caught my interest and you've provided informative points. I will visit this blog often.
Thank you,

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