Online savings accounts

Terry Says

You’re likely referring to purchasing a CD or  opening a money market deposit account at an online bank.  They may offer higher rates, because they don’t have the expense of actual buildings.  But be sure that you are opening an FDIC-INSURED account at this bank, not some other type of product.

The only drawback is that you must wire money from your bank to the account at another bank. So there may be wire fees involved — and that can completely wipe out any interest rate advantage.  And you may also pay a wire fee to get the money back to your original bank!