Sunday, November 18, 2018
Savings Accounts Guide, Banking & Interest Rate Resource.

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 the meantime.
  • 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? The latest financial 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 deposit 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.

  • Account Startup - hold times of deposits can be expected that last up to 10 days in certain cases.

For further review see online banks & savings accounts for some additional background.


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