Virtual Banking and Savings Rates

Ok, so if we are going to make it a goal here at Deals That Matter to save money, we have to make the most of the money we save. That means we must find good rates for the money we save. The best way of doing that at this time, that I know of is using a virtual, or online bank.

I have compared three of the larger online banks that tout higher interest rates.




HSBC, which offers a rate currently of 4.25% with no minimum balances, total online access, unlimited bank accounts that can be linked and only a $1 deposit to start with is a good place to start.

Please read this review of opening a HSBC Direct account here. This process seems a little to involved and time consuming for me. But I guess that it is in the name of security. I just think that it is odd for an account opening to take almost two weeks for the author to be able to view/access his accounts.

Too much hassle for a good rate, just not the best right now.







ING is probably the original online bank. I had an account way back in 2001 with them and had nothing but good things to say. I guess that I also currently have an account with them that the company recently acquired Sharebuilder.

Right now the rate is 4.10%. Also no minimum is required to start an account.

Customer service is all about security. I don't know about the rumors that were spread about the company closing accounts for customers that caused too much work for them.

But right now, the winner of the online banking savings rate is........






E-Trade is offering a whopping 5.05% savings rate with no minimums. Their rate has stayed constant while the others rates have dropped as the Fed has cut interest rates. The company is trying to win back some business.

You're seeing a lot of television commercials touting 1,000 new accounts opened per day. Why such a big push? Well, the companies stock tanked after they too announced they were neck deep in all that sub-prime mortgage write off stuff that has been sweeping many of the big banks.

So E-Trade needs the business to help restore their investor confidence. The savings rate they currently offer is just on off shoot of that need.

There are many other banks out there that would love to compete for your savings. You may even know of a few that can offer even better deals that what I have posted here. Let us know. Again, we want to make this a community.


Full Disclosure: Deals That Matter is not affiliated with any of the companies listed in this article.