Online savings accounts are a critical tool—especially for young savers—to set aside savings in an insured account while earning better interest rates than at their local bank. This page examines the best online savings account rates and is updated monthly or when rates change. For a more detailed comparison of our most recommended online savings accounts, read: high yield savings accounts compared. [...]

Say you inherit, win, or earn $3,000, $30,000, or even $300,000. Lucky you.

What should you do with a windfall of money?

You may be inclined to spend it; to buy a new ride or take the trip you’ve been longing for. The urge to splurge is normal; people are more likely to spend unanticipated money (i.e., a windfall) than anticipated money, like wages (Arkes, Joyner, et. al., 1994). Unfortunately, spending your windfall—or at least all of it—probably isn’t the best move.

Here’s a prioritized list of arguably the best ways to use a windfall. Your individual situation may dictate deviating from this list slightly, but this is solid foundation for planning how to use unexpected money. (Note: You may decide to split your windfall among a few of these goals; that’s fine.) [...]

My bank, Bangor Savings Bank, pulled a cool publicity stunt yesterday here in Portland, Maine. They paid the city $10,000 to make downtown parking meters free for the day. The bank covered meters with a blue hood that read “Free parking today from Bangor Savings Bank. Unconditionally free ATMs every day.”

The bank’s free ATM feature is what led me to become a customer in the first place. Bangor Savings Bank refunds any ATM fee, anywhere in the world, immediately. Take that, Stank of America!

“The bread and butter of community banking is having a person’s primary checking account,” Yellow Light Breen, a senior vice president for Bangor Savings told MaineToday.com. “It’s hard to get people to change banks. But when people are frustrated, maybe they’ll think of your bank to turn to.”

In addition to free ATMs wherever I roam, I like banking with a local bank because I know my money is staying local and that I can walk into any branch in the state and be treated like a person, not a number. I admit, I keep the bulk of my savings in high-yield savings accounts offered by bigger banks to take advantage of their high rates, but I’ll always keep my checking account local.

I just don’t see what advantages big national banks offer checking customers, other than a large ATM network—which Bangor Savings Bank’s ATM feature altogether negates.

Do you use a local bank that you love? Who are they, and why do you love them?

Leading online savings bank FNBO Direct is relaunching its pay yourself first challenge with a handy savings calculator that lets you quickly evaluate your monthly saving and spending and find new ways to save.

Here’s a preview of FNBO’s savings finding calculator and links to some of the other best free savings calculators on the Web. [...]

There’s a new national bank that now offers online high yield savings account options. Last month, GMAC Bank re-branded itself as Ally Bank. And, when Ally Bank re-launched, the bank unveiled several new online savings account options that provide great high rates, including a online savings account that requires no minimum opening deposit or minimum balance and a no penalty nine month CD . [...]

One of the most common questions I get from readers (and curious acquaintances) is how much money should I have saved by 30? (Or by 25, 22, etc.) Of course, it’s always seemed to me to be a silly question, because everybody has totally unique financial, lifestyle, and career situations. Still, everybody loves benchmarks, so let’s try to find some. [...]

The goal of having an emergency fund is two-fold. For one, your emergency savings can replace your income (at least for a few months) should you lose your job. But an emergency fund has another equally-important function: to allow you to pay for large, unexpected, and unavoidable expenses without incurring debt or borrowing from other savings accounts (e.g., college funds or retirement plans). With the focus these days on the economy and job losses, everybody’s so intent on protecting their emergency fund in case they lose their job, they may be more willing to save instead of pay down debt, or even pay for an unexpected expenses from other sources like credit cards. Is this smart? Consider this example I received from a 28-year old reader: [...]

These days, savers are bemoaning the plummeting interest rates on online savings accounts. Just two years ago, rates were 4%, 5%, even 6%. Now most online savings accounts pay yields less than 2%. Although I did write about alternatives to high yield savings accounts, I still think everybody should have an online savings account. Here’s why: [...]

One of the most common questions I receive via my contact form is: “Can I close old, unused credit card accounts without hurting my credit score?” Most often, the answer is no. Here’s why. [...]

Anybody with a high yield savings account knows that the rates on these accounts have been plummeting recently. Many of them, including ING Direct, now pay less than 2% interest.

While some, including top-rated FNBO Direct, continue to pay competitive rates (as high as the market will allow), you can’t expect your cash to grow substantially in these accounts. Although I still highly recommend FNBO or a similar online savings account for short-term savings (such as your emergency fund or surplus checking funds), if you are going to be saving money for a few years, it may be time to look beyond the savings account. [...]