Online savings accounts
Hi Terry,
I have money in a traditional savings account that I don’t want to tie up in investments or CDs but want to get some interest on this money as well. My current traditional bank is giving very minimal, (0.15%) interest on this money. I have been seeing a lot of adds or articles about online high yield savings accounts. Putting money in an online only bank makes me nervous, worried they could just close up or be an elaborate scam. Do you have any recommendations on reliable, trustworthy online savings accounts that you trust?
Terry Says
Check out the money market accounts at Fidelity and Vanguard — the ones that buy only U.S. Treasuries. They are not FDIC insured, but invest only in US obligations.
And other local banks may be offering higher-yielding MM deposit accounts.
If going online, make sure the account is FDIC insured.
