The big banks leave something to be desired when it comes to high interest savings accounts, which explains why online competitors like Ally, PC Financial and ING Direct are becoming more popular.

So-called premium savings accounts at the big banks are paying a quarter of 1 per cent, or less if you don’t have at least $5,000 in the account. Meanwhile, online savings accounts are paying up to 2 per cent, with no minimum balance or transfer fees. It may not sound like much, but over a three year period your initial $5,000 balance would be worth nearly $270 more if it was in an online account.

As a one-income household, with a stay-at-home spouse and a young child, I’m always looking for better ways to make ends meet. Even an extra few hundred dollars a year is important, so I went in search of the best place to earn a return and still have access to my money in case of an emergency. In the end I moved my money to ING Direct.

When it comes to the big banks, we often let our loyalties get in the way of the best deal. The banks understand this and while they offer little for your savings, they have a vast and convenient network of bank machines and branches, offer mobile apps and personalized service.

It is also convenient to hold all your accounts in one place. If you forgot about a bill payment and have overdrawn your account, or if you are heading out of town for the weekend and need to make special arrangements to transfer funds, your bank can help you out.

My goal was to get the best rate. My TD Every Day Savings Account was earning a quarter of 1 per cent with one free transaction per month. Thereafter I faced a $2 fee for each additional transaction, and $1.50 fee per email money transfer.

When I asked for a better deal, I was shown the TD High Interest Savings Account, which pays 1.25 per cent on balances greater than $5,000. Thestar.com’s best consumer rates guide is a good place to do a little research, as are the individual sites.

Here are the top 10 best rates as of September 27th:

1.Ally High Interest Savings Account – 2 per cent

2.Canadian Tire Financial Services – 2 per cent

3.Manulife Advantage Account – 1.75 per cent

4.ING Direct Investment Savings Account – 1.5 per cent

5.PC Financial Interest Plus Savings Account – 1.5 per cent *

6.RBC High Interest eSavings – 1.2 per cent

7.HSBC Advance Savings – 0.70 per cent

8.PC Financial Interest First Savings Account – 0.65 per cent

9.BMO or CIBC High Interest Savings Account – 0.25 per cent

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10.Scotia Bank Money Master Savings Account – 0.15 per cent

*On balances greater than $1,000

It’s worth noting that many credit unions also offer competitive rates. Make sure you read their terms and conditions to look for hidden fees, restrictions on accessing your funds, and a deposit guarantee. Some credit unions, like Outlook Financial, require you to pay a $5 membership fee before opening an account.

On the surface, the RBC eSavings Account appears to be competitive with no minimum balance and no monthly fees. But when I dug a bit deeper there were plenty of fees and restrictions. You can pay bills online, but there is a $5 fee for every assisted transaction (cheques, in-branch withdrawals and fund transfers; telephone banking bill payments and fund transfers assisted by an agent) and a $5 fee for any transfers outside of your RBC accounts. You are allowed to one cash withdrawal per billing cycle.

That’s the best of the bank bunch. BMO’s option offers a pitiful 0.25 per cent rate and requires a minimum $1,000 deposit or face a charge of $4 month If you only held $999 in this account you would earn just about $2.50 in interest over a full year while paying $48 in bank fees. No thank you. The CIBC is just as bad, but doesn’t charge the $4 monthly fee.

Ally and Canadian Tire offer the best straight up rates at 2 per cent. In the end, I decided to go with the ING Direct Investment Savings Account. ING Direct’s rate is 1.50 per cent and they pay a $25 bonus for opening an account with an initial $100 deposit.

With ING Direct, a $1,000 balance would grow to $1,072 over three years when you include the $25 bonus.

ING Direct customers also have the opportunity to earn $25 for every new account your friends or family open with ING Direct. I’ve already had four referrals from co-workers and friends since opening my account, which has earned me an additional $100.

In the end, if you need regular access to your money, or need to make last minute changes to your account, you might be better off with the traditional brick-and-mortar bank. But if you’re looking for the best interest rates to help build your savings, you might like what you find online.

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Robb Engen lives in Lethbridge, Alberta and is half of the Boomer & Echo personal finance blogging team with his mother, a former financial advisor.