I have been seeing these more and more, online savings accounts that have high interest rates. (higher then my bank, NFCU). Just wondering if anyone here has tried them out before. I have been doing some research online, and it seems if you are using it just for savings, its a good deal. Anyone have any thoughts?

Do you have specifics on what type of yield they are offering, and at what minimum. Usually truly High Yield savings are for deposits over 100k. Some high yielding CDs, ask for a minimum of 10k.

Sometimes banks advertise a high yield, but if you look closer the rate of return is tiered. Meaning, the higher the balance, the higher your rate will be. For example, a rate of 5% may be advertised, but only those with balances above 100k will receive that maximum advertised rate. It is advertising trick, to lure in customers.

Check out, Bankrate.com, for the latest rate comparison of most popular financial institutions.

FDIC if it's not insured stay away.

its FDIC insured. 3.5% APY. no minimum balance. I have been looking at HSBC Direct. It seems like a solid choice for medium-long term savings. I would reccomend people check it out.

HSBC Direct, is a good choice, however that 3.5% is only a introductory rate. It drops to 3.45% after Sep 15.

If you check bankrate.com, you will see they do not hold the highest rate of return on w/ no minimum.

http://www.bankrate.com/brm/rate/mmmf_mmaratehome99.asp...t=33&state=CA&sort=3

I have been doing EmigrantDirect (FDIC Insured) for a number of years now. I link it back to my Chase Bank checking and move funds back and forth with never any problems and no fees. Today Emigrant is paying 3.00% with no minimum. My Chase checking account is paying only 0.10%.

An example of how convenient and fast: I share some interest with two of my brothers. We all local bank at Chase but live in different towns. One of my brothers needs to give me my share of some funds. He does an online transfer to an account we all share and have access. I then do an online transfer to my personal Chase checking.
This is far more money than I need in checking so after the “pending status” clears I go to Emigrant online and move the money from Chase to Emigrant. No postage and no gasoline used! Just a few mouse clicks on my brother’s end and a few clicks on my end. Also, no lost earning potential on my funds waiting on snail mail and/or our ability to get to the banks to do the deposits.

Like I mentioned above, I have been doing this for several years and never a problem.

I was talking to a friend of mine who has several online savings accounts. He will leave literally $1.00 in all his accounts. Then which ever one at the time has the highest rates, he transfers the rest of his savings to.