When perusing rankings of online banks, be aware that there’s a crucial piece missing.
Investors who want to safeguard their cash while earning more interest know that online banks are a smart choice. The best of these banks offer considerably higher interest rates for savings accounts than brick-and-mortar banks, with the same FDIC deposit-insurance guarantee from the government. That’s why it makes sense to keep excess cash — above what one needs for near-term expenses — in an online savings account, where it will earn more without taking any more risk.
The problem: banks change their interest rates without warning. If you’ve set up an online savings account with a particular bank, and suddenly the interest rate drops, you might be earning less than you could be elsewhere. If a rival bank raises its rates, you will miss out if you don’t have an account there. And if you’ve decided to solve this problem by opening multiple accounts, you’ll still have to monitor rates and move money between them as rates change.
MaxMyInterest solves this problem for investors, by monitoring interest rates daily and helping your cash flow to the banks offering the highest rates. Our service currently encompasses five of the leading online banks: Barclays, American Express Personal Savings, Capital One 360, GE Capital Bank, and Ally Bank. Each of these is FDIC-insured up to $250,000 per depositor, per account type. We’ve chosen these banks based on several criteria, including customer service, reputation and heft. Each has a depositor-friendly signup process and offers accounts with no fees and no minimum balance.
Once MaxMyInterest members set up accounts at these banks and link them to Max, our service automatically helps move their money between their own accounts to optimize the interest rate they earn. We also take FDIC coverage into consideration, so our members know their cash is insured.
This allows our members to earn the extra interest that online savings accounts pay above brick-and-mortar banks, without worrying about whether they will continue to earn the most as rates change. After a one-time setup, our members rest easy, knowing that Max is looking out for the best rates and optimizing their accounts, automatically.
Online bank rankings are a helpful tool, providing a better understanding of the online banking landscape. Max works with the online banks that sit atop these annual rankings, but addresses the last piece of the online banking puzzle by helping depositors earn the best returns on their cash, even as interest rates change. We’ve also included additional features to make online banking as simple as ‘checking’ and ‘savings’.
Online banking is smart. Online banking + Max is smarter.