Finding the Best Online Savings Accounts
For many investors and people wishing to save their
money, an online account account has undeniable strengths to offer
over traditional, brick and mortar accounts.
Getting the best account can help you reach your savings goals
while protecting your deposits and meeting your obligations in
For further review see online banks & savings accounts for some additional background.
- FDIC Insurance - is this in place
to protect deposits and how viable an option is FDIC itself?
- Stability/Financial standing - does
the savings institution enjoy a favorable financial status?
statements can reveal a lot about a company. Find those in robust
health that are putting out a steady rate of return.
- Transfers/Account Setup
- is this done by ACH or by wire or both?
Coordinating the transfer with your local bank will be necessary.
- Fraud - what measures you can expect to
guard against fraud. And if fraud is perpetrated, will deposits
be protected and to what degree?
- Interest rates/compounding - yields
that surmount the 3% to 4% mark would be exceptional at the
time of this writing. But unless there is a large amount of
to stay on balance for a lengthier term, roughly half this
amount of 1% to 2% is considered upper tiers.
- Extended account histories - in
case they are needed, depending on your situation.
Having the option is still a plus.
- Customer Service - is the business supplied with a live
person at a 1-800 line, which is preferred by most customers or is communication by email or chat session only?
- Allowable withdrawals - often
restrictions bind the account holder, to a certain amount
of withdrawals per the given period specified (six per regulation
D). While at the same time, up to 3 days or more might be required
to complete certain
withdrawals. Like with some other features, the less the liquidity,
the greater the yield on the account, generally speaking.
- Automatic deposits - setup from a separate account
may serve to reduce the footwork and banks that offer this
generally offer an advantage.
- Fees - a fee schedule by request can
inform the customer beforehand. But does the savings institution waive certain types of fees if so requested (at least once per occurrence)?
- Interface/customer panels - are generally
passable, unless you happen to be an infrequent pc user. Although
the simpler the better.
Startup - hold times of deposits can be expected that last
up to 10 days in certain cases.