The US rate of savings is not as high as other nations; for example, India has a far better personal savings rate per capita. It is interesting to note that among wish lists like New Year’s resolutions and things to do to improve finances, saving more ranks quite high. In the past few years, savings account interest rates have hardly been an encouraging factor. Those in their forties probably remember interest rates in the three to five percent range. In recent years, many brick and mortar banks offered half percent for their no minimum accounts.

It’s All About Online Banking

In 2015, things have brightened for savers and the primary source are online banks. Several large banks have joined the existing list of online banks with online ventures. Online banking requires fewer employees and much lower costs of facilities, and they are the leaders in interest rate yields. Minimum deposits and fees are factors to watch when selecting banks. Accounts with substantial minimum deposit requirements pay more. But many restrict withdrawals and require strict penalties and fees.

The Top Five

This list includes the best interest rates for banks with no minimum and no or low fees. It may be possible to get similar or higher rates with minimums of $5,000 or more and fees for many services if the account falls below a minimum. The top five are online banks with full FDIC coverage.

• Synchrony Bank -Current yield is one and five hundredths percent(1.05 percent). It has no minimum deposit, and the interest rate trend in the last month is up. Formerly part of GE Capital Bank, Synchrony is a leading online full-service bank. As part of the GE Capital Bank, the organization gained a following among rate and fee conscious depositors
• EverBank offers rates among the best in the industry. The current high yield is one and four-tenths percent (1.40 percent) for new accounts for six months on up to $50k. For other qualified accounts, the rate is one and one hundredths percent(1.01 percent) Annual Percentage Yield for the first year for first-time money market customers, up to a limit of $50,000. The savings accounts are FDIC insured; the interest rate trend in the past month was unchanged.
• Discover Bank offers a current yield of about one percent (0.95 percent)with FDIC insurance up to $250,000 per account. The interest trend in the last month is steady. They also offer a high minimum deposit account with a higher yield.
• FNBO Direct Online FDIC insured savings accounts pay a current yield of three-quarters percent (0.75 percent). Started as a local Omaha bank in 1857, First National Bank of Omaha has $20 Billion in assets under management. Known for exceptional customer service, it has a 7,500 member workforce. It is the largest private bank in the US. The FNBO interest trend in the last month is steady.
• Capital One 360 Savings Account offers a current yield of three-quarters percent (0.75 percent) with no minimum and no fees, and it is FDIC Insured for up to $250k. It has no minimum deposit and a quick sign up. Capital One is a well established financial institution that has made a commitment to the online savings space by acquiring ING Direct. The interest rate trend in the past month period was steady.

Outlook for 2015

If the current turmoil in world stock markets slows down the expected Federal Reserve action on interest rates, these rates may be among the best on the market this year. However, when rates rise, Banks will pay more for funds and ultimately pay depositors more to get funds.