Banks Offering Free Online Savings Accounts

Online savings accounts are a great way to save money if you use a bank that is not in your local area. Why? When you use an online savings account with a bank not in your local area, you will not be able to go grab the money whenever you choose, and therefore, your savings will be left alone.

The following banks offer online savings accounts:

Capital One: This is where I have an online savings account. I don't put much money in there, because I have to put it in PayPal first. To tell you the truth, this is the first one I saw, so it's the one I went with. I've been happy so far, and I've had the account almost a year with no issues. You can earn 1.75% APY on $10,000 balances, and there are no fees. There is no minimum balance either, but you should have at least $25 to open the account. I use PayPal to make my deposits and withdraws. The lag time really stops me from withdrawing money unless I have to.

HSBC Direct An account here requires no minimum balance, and has no fees. There is a 1.65 APY. This is a great bank to work with as they are known for having some of the best interest rates and high yield savings accounts.

FNBO Direct FNBO Direct is the online arm of First National Bank of Omaha. Online savings accounts here have been rated the best online savings accounts by Kiplinger . There is a 1.65% APY. There are no minimum balance requirements, no monthly fees, and you can open the account with as little as $1.

CitiBank: This is definitely not one of the best online savings account if you do not already have a CitiBank account. In fact, if you do not have one, skip this option. If you do have a checking account with CitiBank though, this can be an excellent option for you because you can link the two accounts, earning more Thank You Points for services. Earn 1.01% APY and open the account with $100.

ING Direct Earn 1.5% APY and split your money into clearly labeled sub-accounts to track savings goals. No fees or minimum balance required.

Though there are several other banks offering online savings accounts, the ones listed above are considered the some of the best online savings accounts because of their interest rates and customer service track record. Opening online savings accounts with these banks is a great way to save money, and a great help to those of us who have trouble with checking accounts but still need to have a bank account of some sort. For more information on online savings accounts and all things personal finance, check out Bright Hub's Personal Finance Channel.