In order to find the best online savings account rates it is important to understand how online accounts may differ from your local bank and why you may be able to acquire higher interest rates online. Many of the accounts that are offered online will include higher interest rates based on the type of investments that particular bank is using. In order to select the appropriate bank it is important that you check on the track record of the bank and to understand what type of features their online savings account will include.
Chapter 1. Online Savings Account Rates
Compared to the traditional savings account that you likely have with your local bank, your ability to earn interest can almost triple by using an online bank. The online savings account rates are much higher, some even as high as 1.25% with a chance to earn more interest over time. These banks are highly competitive against one another and it helps to look at a comparison of the interest rates, penalties, withdrawal limitations, and minimum balance requirements.
Chapter 2. The Best Online Savings Account
As you do your research to try and find the best online savings account you need to be aware that some of the best companies to work with may not be the big names. Chase Bank, HSBC, ING Direct, and could have lower interest rates from some of the smaller banks that are not as well known. This is why it is so important to do your research and to look for the various features of the accounts and to find the company that will be able to provide you with the highest savings account rates. There are 2 key aspects to consider when you are shopping around for a good online savings account:
- No minimum balance requirements
- High yield
Chapter 3. Why Online Savings?
Many people are back and forth on the way they save money. Some people do not use online savings accounts as they feel that CDs or money market accounts can offer a higher interest rate. While these accounts may offer more money in interest, they may not offer you the same type of flexibility as the best online savings accounts can provide. You need to look at your financial situation and determine if you may need instant access to this money for whatever reason. Job security is one of the factors that can help you to make your decision between an online savings account and a CD or another small-interest account.
Chapter 4. Ease of Use
As you are focused on saving money it is important to find out what type of online banking options are available with the savings account. Most of the best online savings accounts will provide you with access to direct deposit and you can even schedule a monthly deposit to the account. A bank that provides you with the best service will have multiple options to help you deposit and withdrawal the money from your account. Customer service is another important thing to consider as you seek out the best online saving account.