How can you find the best online savings accounts? It is not an easy process so you need to use bank comparison tools that can help you to look at the interest rates, account fees, and many other things that will help you to open an account to maximize your ability to save. Typically people only search for the interest rate when they are comparing savings accounts. This can be a big mistake as you have to consider the account fees as they could reduce your potential to earn more money.
Online banks pay a higher interest rate from traditional banks. This is due to their lower overhead costs and ability to pass along the savings to their customers. Many of them do not have as many branch locations so you do need to consider how often you visit the bank when you are deciding if online banks are the best option for you to take. There is a significant difference between an online savings account and a high interest money market account. Some of the best online banks to work with include the following:
- ING Direct
- Ally Bank
- Sallie Mae
The comparison charts change often, which is why you need to use them and stay on top of the rates. Most banks will not charge you for closing your account, which allows you to move your money so you can take advantage of the best online savings out there. Just be weary of become a “rate chaser” as this won’t do you any good. You need to select a bank that offers a competitive rate, lower account fees, and can really offer you quality customer service so you do have a chance to save.
As you are comparing online banks to find one that can give you the best ability to save, you need to make sure you look at the security of your investment. You need to have a bank that will be secured by the FDIC and also has a secure website. This way you know that your money is protected and safe.