The number one question that potential customers ask is how these banks can offer an interest rate of 1% or more. Think about it. If it is an online bank, there are plenty of expenses that are eliminated which are required of brick-and-morter banks. Online banks don't have to pay a lease for retail space, no salaries or benefits for tellers, new account reps, and branch managers, no electricity, no alarm services, and so on.
All those savings are passed on to the depositors. If the opening of accounts and deposits and withdrawals are all handled online, there is very little expense involved.
So what banks make these offers, you might ask. Here is a list of several, all of which are offering FDIC insured accounts up to the maximum allowed by law. A couple of them do have minimums to open and/or maintain an account without incurring a fee.
|Bank||Type Acct.||FDIC||Interest Rate|| Min. to
| Min. for