Have you looked at your bank statement lately? Take a look at the section marked “Interest Rate†to get a chuckle. Many people might be happy when they see .01%. That’s 1 percent right? Wrong.  That means one hundredth of one percent. Here is a breakdown of how much you can earn with a .01% interest rate;
- $1000 will earn you just under $0.10 for the year
- $10000 will earn you just under $1
- $100,000 will earn you $9.96.  That is not even enough interest to be reported on your taxes.
Online savings accounts offer convenience and accessibility, as well as higher interest rates.  The best online savings accounts typically offer higher rates because they do not have the brick and mortar branches that conventional banks have. They do not have to pay for the lease, the utilities, or any of the costs that accompany an actual building to service customers.
Online Savings accounts are FDIC insured, so you need not fear that your money may be lost. FDIC currently insures $250k for each signer type.  Online Savings accounts have convenient support and 24 hour online access. Whenever you need access to your money, all you need to do is sign on and transfer it to your checking account.
Opening an online savings account is simple. After you choose the online savings account you prefer, click to open the account, and you will be asked for your information. The site is secure so there is no need to worry about online security. After inputting all of your personal info, and choosing your unique user id and password, you will need to fund the account. Inputting your current checking account and routing number is the easiest and quickest way to fund the account. That’s it, you now have a new online savings account.
Keep in mind with your new online savings account, your money is not instantly accessible. You must plan ahead when you need your money. Transfers in and out of your online savings account will generally take 2-3 days before your money is available. Just like any savings account, you are limited to 6 withdrawals per month. This is a regulation with all banks, and online savings accounts are no different.
Here are some of the best online savings accounts that are offering the highest interest rates:
    Ally Bank Online Savings Account. Ally was founded by GMAC in 1919. They are working hard to fix the GMAC name.
- Offering .89% yield
- FDICÂ Insured
  Discover is a well-known credit card company, that now offers online savings in addition to their striving credit card division.
- Offering 1% yield
- FDIC Insured
   FNBO has been around for over 150 years, and is a highly rated customer service oriented bank.
- Offering .7% yield
- FDIC Insured
Earn high interest with the Orange Savings Accountâ„ – No fees, no minimums & no need to change banks! FDIC Insured.
was one of the first online banks,  and has been consistently providing productive online banking.
-
Offering .80% yield
-
FDIC Insured