Why some Internet banks can pay higher interest rates on Savings accounts

Why some Internet banks can pay higher interest rates on Savings accounts by Patrick Ort

Savings accounts are safe place to keep your money. Savings accounts are FDIC insured meaning the government guarantees your money up to $100,000.00. The advantage a savings account has over a Certificate of deposit (CD) is that your money is not tied up for a period of time. You can access it at anytime without paying a penalty.

The problem is that a lot of banks do not pay as high an interest rate on savings accounts as on CD’s. However, some internet banks are a little different.

Typically, Internet banks don't have branches, but when was the last time you were in a bank branch? Instead, they take the money they save from being branchless and pass it on to you in the form of greater value, including better rates, lower fees, and better product selection and services. And you have 24-hour access to your account.

ING DIRECT is one such internet bank. They do business online, over the phone and by mail. Without the overhead and high operational costs of other banks, they can pass those savings onto their customers.

An ING DIRECT Savings account is an FDIC-insured savings account with no fees, required minimums or service charges… no matter how much money you have on deposit. You can open an account online is about 5 minutes.

Click the underlined text below if you are interested in learning more about opening an ING DIRECT Savings Account.

ING DIRECT makes $aving money simple! Open your account online today and start earning 2.35% variable APY. No Fees and No Minimums!