Bank Online, Online Savings Accounts
October 7, 2009 by · Leave a Comment
If you are contemplating opening an online savings account at the end of the day there really is only minor differences between the best online banks. Personally I want the best interest rates for my online savings accounts, and I want quick and easy access to my money. Finding the best interest rates for online savings accounts is generally not difficult. Finding the online savings account that makes site navigation and is user friendly might be a little more challenging. Regardless of what bank online you choose ultimately you are at the mercy of their customer service department.
Online banks generally make money with various fees for transactions. So you want to make sure you understand the fee schedule of the bank that you choose. These days the banks online are extremely competitive when it comes to pursuing new business and new accounts. Incentives to open new online savings accounts vary from personal gifts to higher interest rates.
Keep in mind that while your account balances will be accessible 24 hours of the day transfers between accounts and withdrawals may require a few days to occur. For many people these delays can be a nuisance however, for many people it offers a built-in discipline for reckless spending.
If you have never opened an online savings account it would probably behoove you to start off with an account to help you experience the differences in a traditional bank account.
Remember that your online savings account is exactly that, a savings account. Generally speaking with online savings account there are limits to the amount of withdrawals you can make in a given month. If you find yourself having to make withdrawals beyond account limits you probably need an online checking account instead of an online savings account.
New online savings accounts generally have holds placed on the accounts. This can be frustrating, but it is part of the process of establishing your account online.
The Best Sources For Online Savings Account Rates
Presently interest rates are very low for savings accounts. However, inflation is low as well. Seeking out a high yield online savings account will maintain your buying power versus inflation. Everyone needs an emergency savings cushion and the present market conditions allow you to make significant gains versus inflation. Savings is never easy for anyone but conditioning yourself to a few basic fundamentals of saving money can help. Pay yourself first. Set up an automatic withdrawal if possible from your paychecks and deposit them directly into your online savings account. Here are a few onlien banks that can help with your financial goals.
ING DIRECT – High Yield Savings with the Orange Savings Account. offers up to 1.65% APY, on their Electric Orange interest checking account on high balances. They feature a web interface, free bill pay, free ATMs at 35,000+ locations and an online application and is truly a leader in the industry.
HSBC Direct offers 1.45% APY, no fees, web interface. $1 minimum to open. Named “best online savings account” by Kiplinger’s Personal Finance in 2006.
WTDirect Savings Account offers a variable rate currently at 1.66% APY on all balances for first 60 days. Beyond that, accounts >$10,000 continue at the variable 1.66% and lower balances are adjusted to a lower variable rate. No Fees. FDIC Insured. No minimum deposit to open the account and no checking account required in order to get the high rate.
