I ditched my brick-and-mortar bank years ago for a higher yielding online savings account. A few years ago, I moved my checking online too. I still kept a checking account open that wasn’t online because of the issue with mailing in checks. But with online banks now accepting mobile deposits, there is no need.
While you cannot earn the interest rates online that you could 10 years ago, the benefits to online banking (in most cases, absolutely free) are still a perfect reason to switch. If you are unsure, do as I did and “dip your toes in”. Once you see how great it is, you can jump in all the way.
Capital One 360: This is formerly ING Direct. You might find articles online about how Capital One was going to destroy ING, but so far that hasn’t happened. In fact, they have made the bank even better. I was one of those that was cautious of the potential issues with the switch, but it’s been over a year now without any issues. If things do change, I will be sure to update you. To get a full analysis, read my Capital One 360 review.
Elements Financial: This used to be called Eli Lilly Credit Union. It’s still the same company, just a new name. I use them for my HSA account. They do charge a $3/month if you have less than $2,500 in the account. The great thing though is that they pay 1.00% interest right now. They also partner up with TD Ameritrade for investing your HSA money. You can click here to learn more/sign up. If you would like, you can contact me and I can personally refer you as well. (Note that if I refer you, I will get a commission from Elements. If you just click the link above to sign up, I will not receive a commission. There is not difference for you regardless of which way you sign up.)
Everbank: The great thing about Everbank is that they offer a bonus rate yield to new customers and then their Yield Pledge on top of this. As of this writing, you 6-month bonus rate is 1.40% for balances up to $50,000, then 1.01% for the following 6 months. After that, your yield is 0.61%, which falls in the top 5%.
If you would rather shop around for the best rate, below is a table provided by Bankrate that will let you search for the best savings account for your needs.