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It’s obvious that current banking system is still not stable. National City Bank followed WaMu and Wachovia’s step to be sold to PNC Bank. Smart American consumers concerned about the safety of their money and investments are increasing turning to trusted online banks and high yield savings accounts for the FDIC insurance protection they afford. Current FDIC insured amount has increased to $250K.

This post is trying to give you some advice on where to shop the best and trust online banks with high yields. If you are looking for the best online banks in terms of those that offer the highest interest rates for checking and savings accounts, you’ve come to the right place. It’s well known that online banks always offer higher rates on savings, money market funds and CDs than generally known banks like Citi, BOA, and Chase.

1. Capital One Direct Banking – 3.55%

Capital One Direct Banking offers 3.55% APY on balance over $10,000. If the deposit is under $10,000, the APY is 2.55%. I think this Capital One online savings account offers one of the best savings rates among the top national banks. During the financial crisis period, there is no negative reports about the Capital One, so I think it’s save to deposit money there. I personally have a Capital One Online Savings Account and I like it very much. The easy to use and link other accounts make me feel that Capital One Direct Banking is a really reliable bank. They will keep sending a statement to you even your balance is $0.02 every month.

2. WT Direct – 3.31%

WT Direct always offers top rates on their high yield savings account. There is no monthly service fees, minimum balance requirement but you have to keep your balance over $10,000 to get the high rate. As their website indicates the WT Direct online banking is part of a family of companies with over 100 years of financial strength and stability—Wilmington Trust Savings Bank. There is no related reports about the falling of this bank. WT Direct was rated as “This institution offers good financial security and has the resource to deal with a variety of adverse economic conditions.” by TheStreet.com.

3. Amboy Direct – 3.25%

Amboy Direct eSavings is an FDIC-insured savings account. For account balance higher than $3,000, you can have 3.25% APY! Plus you can get $50 sign up bonus if you open an eSavings account right now. The other interesting feature of this account is the ability to make (3) free Bank-to-Bank withdrawals and unlimited deposits in any calendar month. There is no monthly balance minimums or service fee.

4. HSBC Direct – 3.00%

It’s no doubt that HSBC Direct is one of the safest online banking choices out there with a wide international and national banking presence. (The world’s local bank!) Although the account opening process is a little complicated for new customers, their customer service is generally good and helpful. HSBC direct online savings account also often offer sign up bonuses. If you travel around the world frequently, HSBC is your top choice.

5. E*Trade Savings – 3.00%

Better known for its online discount broker program, E*Trade also runs a traditional banking component. Their complete savings account features high yield rewards and super fast money transfer service. If you are using the E*Trade brokerage service and want to link E-Trade brokerage account and their online savings, E-Trade’s Complete Saving Account is a recommended choice.

6. Emigrant Direct – 3.00%

The Emigrant Direct American Dream Savings Account is the feature banking product from Emigrant Direct which features no monthly fees and no minimum balance. Furthermore, there is no need to change your checking account. Your American Dream Savings Account will be linked to your current checking account. This bank is always chased by customers seeking for safe and high yield savings products.

7.  ING Direct – 2.75%

When it comes to ING Direct, one thing is common – it’s universally agreed upon is that ING Direct is a great online savings bank. When you read a personal finance blog, online journals, or newspapers, ING Direct is often praised for its super customer support and easy-to-use online account. Once you start a relationship with ING, you just don’t want to try others. Their simplified and streamlined website interface that makes it easy for both advanced users and novice online banking customers to use. The famous Orange Savings Account is not only quick and painless to open, the high yield savings account also imposes no monthly fees or account balance minimums.