Consider a simple savings account.

Posted on January 14 2009

Like most banks it probably isn’t much besides a pat on the back. If you are in the position where you can save a few dollars each month and you would like to see a little return I have a few different sources you could consider. These are on-line banks that actually pay a decent return each year considering the current financial mess. The rates on this page are current as of 24 December 2008.

• E*TRADE Bank offers 3.01% APY, no fees, an automatic savings plan. $1 minimum to open.
• HSBC Direct offers 3.00% APY, no fees, web interface. $1 minimum to open. Named “best online savings account” by Kiplinger’s Personal Finance in 2006. Only two stars from Bankrate’s Safe & Sound rating.
• FNBO Direct offers 2.80% APY, with no monthly fees, no minimum balances, and “no strings”. $1 minimum to open. Named best online savings account by Kiplinger’s Personal Finance magazine, December 2008.
• ING Direct offers 2.75% APY, no fees, an automatic savings plan, web interface. No minimum.

Note: All of these banks earn 3+ stars via the Safe & Sound rating from Bankrate.com except as noted.