NEW YORK, Feb. 7, 2019 /PRNewswire/ -- MagnifyMoney, a LendingTree subsidiary that helps consumers compare financial products, has released its inaugural ranking of the Best Online Banks for 2019 in an effort to highlight the best online banks for important financial products and to help consumers maximize returns on their deposits.
MagnifyMoney's team of researchers and analysts looked at rates and features among online banks for CDs, savings accounts, money market accounts, and checking accounts. The banks with the best interest rates and those who have consistently been included in MagnifyMoney's monthly "Best of" rankings were included in the annual review.
Average savings account rates among online banks nearly doubled from 0.79% in June 2017 to 1.52% in December 2018. With the Fed predicted to raise rates several more times in 2019, rates will likely continue their ascent. Average savings account rates among brick-and-mortar banks increased from 0.16% to 0.26% over the past year, and credit unions increased savings account rates from 0.18% to 0.23% over the same timeframe.
In today's rising rate environment, online banks are often the best option for switching from one bank to another. Through the Best Online Banks roundup, MagnifyMoney hopes to make the choice a bit easier for those looking to make the switch to maximize returns.
Best banks for CDs MagnifyMoney chose banks with the highest 1-year CD rate and consistently held a spot on MagnifyMoney's Best CD Rates page for two years.
1st Place: Ally Bank - Ally Bank is the best bank for CDs thanks to its consistently high rates, especially on its 1-year account, but the bank's competitive rates extend across its three different CD account types — the High Yield CD, Raise Your Rate CD and No Penalty CD. Even better, Ally Bank doesn't charge monthly fees on CDs, and there is no required minimum deposit to open any of its CDs.
2nd Place: Synchrony Financial
3rd Place: Marcus by Goldman Sachs
4th Place: Barclays
5th Place: Capital One
Best Bank for Savings Accounts MagnifyMoney chose banks that had the highest savings account rate and consistently held a spot on MagnifyMoney's Best Savings Account page for two years.
1st Place: Ally Bank – Ally Bank doesn't come out top for CDs alone — it is also the best online bank for savings accounts. Its Online Savings Account has one of the highest industry rates, has zero to low fees, offers simple online transfer capabilities and has no minimum required balance to open or maintain an account.
2nd Place: Barclays
3rd Place: Marcus by Goldman Sachs
4th Place: Synchrony Bank
5th Place: Salem Five Direct
Best Bank for Money Market Accounts MagnifyMoney chose banks with highest money account rates and those that consistently held a spot on MagnifyMoney's Best Money Market page for two years.
1st Place: Sallie Mae Bank - Sallie Mae Bank's Money Market Account offers a rate well above the competition. While Sallie Mae is typically associated with student loans, Sallie Mae Bank (under SLM Corporation) offers some great banking products designed to help you grow your savings efficiently. There are also no required minimum balance or monthly fees, Sallie Mae offers check-writing capabilities, making this a great option for a successful money market account.
2nd Place: Capital One
3rd Place: Self-Help Credit Union
4th Place: Ally Bank
5th Place: ableBanking
Best Bank for Checking Accounts MagnifyMoney's Best Banks for checking accounts had to tick a few boxes — it had to charge no monthly maintenance fees, offer an out-of-network ATM fee refund, and consistently hold a spot on MagnifyMoney's Best Checking Account page for two years.
1st Place: Ally Bank – Earning the title as the best bank for checking accounts, Ally Bank's Interest Checking account has no monthly fees, refunds up to $15 in third party ATM fees each month, and the account also earns interest, where balances determine interest rates. Balances of $15,000 and over can earn the account's higher rate, although neither rate stands out too much, which is typical of all checking accounts.
2nd Place: Charles Schwab Bank
3rd Place: Aspiration
4th Place: First Technology Federal Credit Union
5th Place: BankPurely
Top Online Banks in 2019 The winners are the banks that showed up the most among the four previous categories.
Best Overall Bank in 2019: Ally Bank 2nd Place: Synchrony Bank 3rd Place: Goldman Sachs Bank USA 4th Place: Barclays 5th Place: Capital One
Best New Online Bank: Vio Bank - Less than a year old and boasting an incredibly competitive interest rate on its High Yield Online Savings account Vio Bank certainly fits the bill for best new online bank, with. "They've got promise and potential with no monthly fee and no balance requirement," Tumin said.
About MagnifyMoney.com MagnifyMoney.com, a subsidiary of LendingTree, makes it easy for consumers to shop for the best financial products and get answers to their most important financial questions. MagnifyMoney's unbiased advice and comprehensive product database helps millions of people compare credit cards, loans, checking accounts and savings accounts. MagnifyMoney's newsroom of personal finance experts is dedicated to helping people save money and lead financially healthier lives through strategies and tips for avoiding fees, getting out of debt, paying off student loans, avoiding consumer scams and other financial topics. MagnifyMoney was launched in 2014, was acquired by LendingTree in 2017, and is based in New York, NY. For more information, please visit www.magnifymoney.com.