Bank of Internet Savings Accounts

If you are in the market for a high yield savings account, this post will help you determine if Bank of Internet has the high interest savings account you are looking for.

Opening a high rate savings account at Bank of Internet

Since Bank of Internet’s claim to fame is that they are the longest standing online bank, it is no surprise that their savings accounts can be applied for online. Both high yield online savings accounts require an initial deposit of $100. The similarity of  Bank of Internet’s two savings accounts will allow us to review their features at the same time.

Bank of Internet Features and Freebies

There are no minimum fees or maintenance fees and both saving accounts are FDIC insured against bank failure. Interest is compounded daily on the high rate savings accounts. Online banking will allow you to see free statements as well as to transfer money to other Bank of Internet accounts. Any Bank of Internet high interest online savings account comes with an ATM card to allow convenient access to deposited funds.

When it comes to features, the only difference between the advantage savings and the high yield savings account offered by Bank of Internet is that the advantage savings account has limited free bill pay. Neither account offers check writing privileges. If that is an important feature to you then maybe the pros and cons of a savings account do not fit your goals. Please see our articles about savings accounts, money market accounts, and CD accounts, to determine which deposit account best fits your investment goals.

Rates and Limitations

The best savings rate at Bank of Internet is connected to the high yield savings account and is currently 0.80% APY. To compare savings rates between Bank of Internet accounts, the Advantage Savings account has an APY rate of 0.71%. The highest rate currently offered is 1.40% so Bank of Internet rates fall in the middle of the highest rates as quoted by bankrate.com. If you would like to read about what savings rates other banks are offering, please see our posts on the best savings rates from different online banks. Both accounts have the standard transaction limit of 6 withdrawals per statement cycle.

Summary of Bank of Internet Savings Accounts

Bank of Internet does offer significantly higher savings rates than larger banks, like Chase Bank or Bank of America, but they do fall in the middle of the group. They are not the highest interest savings accounts being currently offered. There are also several customer reviews that cite trouble transferring funds to out side accounts as a major issue. That being said, the low initial deposit and the plethora of freebies makes them a some what attractive choice, especially to beginning investors.

If you would like to read more about Bank of Internet, please see Bank Truth’s detailed review of Bank of Internet.