5 Best Online Banks, Highest Savings Rates for Your Buck

Finding an online bank can be difficult. Varying rates, hidden fees and simply having too many choices can cause confusion and make it hard to get started.

Set aside some time to look at these banks. Each one is beneficial in its own way, so consider your own financial habits and figure out which one will best help you meet your financial goals.

Here are five online banks that can help you get the most “bank” for your buck.

First, we have Ally Bank, which has reached the top of many online banking lists thanks to its easy website navigation and mobile application. It lets you bank as you would anywhere else, offering anything from CDs (certificates of deposit) to home loans.

While it offers 2-year CDs with a high yield, it also offers a no penalty CD, with an annual percentage yield (APY) of 0.90%. Ally offers other assets as well, such as quick and easy setups for a Roth IRA individual retirement fund, loans, and other exchange-traded fund (ETF) investments.

Radius Bank is another virtual bank with a lot of benefits. Currently, they are offering 1% cashback when you use their debit card, and up to 1.5% on select purchases. Their checking accounts offer 0.15% APY and their high-yield savings can earn up 0.25% APY.

If you set up a direct deposit through Radius Bank they also allow you to get paid up to two days early, something to seriously consider during financially unsure times.

Bank5 Connect is an online division of Bank Five, a community bank in Massachusetts that has been around since 1855. Its online division started in 2013 and now in 2020 is ranked highly by Forbes. Considering their APY rates it’s easy to see why.

Bank5 Connect has a high-interest savings account that can accumulate 0.95% APY. Their checking is nothing to sneeze at either, with an APY of 0.25%. It also features a 24-month investment CD that offers 0.90%. And if that’s not a good enough rate, this particular CD lets you add funds in during the slotted two year duration.

Another Massachusetts brainchild, Salem Five Direct, is a bank with great returns. Starting with a minimum deposit of $100, it has no monthly fees and accumulates up to 1.91% APY on savings accounts.

The checking account also allows for some serious savings, as it has 0.25% APY on it. They also allow for some cash back on debit card purchases, making this bank a serious contender for your dollar.

Limited time offer

HSBC Bank is the U.S. subsidiary of the United Kingdom-based HSBC. Like Ally, you can open CDs and take out loans, on top of opening savings and checking accounts. It has one of the highest APY rates out there: a whopping 2.05% on their savings accounts. You only need $1 to start the account, and there are no maintenance fees to pay.

HSBC is currently offering 3% cash bonus offers for new customers who get their advanced checking account. However, you would have to act fast since this offer only lasts until September 30th.

Unfortunately, the APY for some of their other checking accounts is not as high. They also don’t offer personal checks. But if you’re looking to set aside some cash and want to collect interest, this may be the bank for you.