There are essentially many benefits of opening an online savings account. A typical savings account has higher interest rate, which will help you grow your wealth the longer you keep it. It also has very convenient ways of accessing your wealth whenever you want.
Since, you cannot just trust the first bank you find in that first Google search with your money, you need to consider a few things first. Just like every banking endeavor, even opening an online savings account, needs quite a few checking filters before you can select a bank that will suit your needs. And here are four ways through which you can filter out your bank choices and choose the one that is most suitable for opening an online savings account.
High interest rate
The best feature of opening an online savings account is that it gives you highest of interest rates than that of any normal accounts. This is because; banks have the permission of using your savings account money to their account holders and charge interest on top of it.
But whenever any bank calls for higher interest rates on opening their online savings account, and you decide to opt for it, but make sure that you first understand their conditions and criteria. It might be that they will only provide with that interest rate if you have a certain amount of money in your account, below which, they might actually start charging you with a fee. Or, it might be that you will have to have more accounts in their bank to get access to those rates. Or, the condition just might be to provide higher initial deposit rate.
Make sure you are okay with all the conditions that the bank is offering before you decide to open an online savings account in their bank. But here’s an example of a bank that provides high interest rates for you.
Deposit and Withdrawal policies
Every bank has their own deposit and withdrawal policies, and so you must take into consideration about all of them. Some of those typical policies may be:
- Deposits: Many online banks these days allow you to make deposits in your account through checks, direct employer deposit, or through direct linking of accounts. The benefit of linking your account with other banks’ accounts is that you can easily transfer funds from one account to another. Go through each and every part of your selected bank’s deposit policies before considering opening an online savings account in them.
- Withdrawals: All online savings accounts will give you the access of your own personalized ATM debit card. You will be able to use this card to withdraw money from any ATM, or use the card as a mode of payment itself. In case of the latter, your money will be deducted automatically from your account. And you will also be able to share money in different accounts, if you have them linked to your online savings account.
You must verify that your bank allows all of these things and more. And never settle for anything less.
It is quite important that you only choose a bank that is ensured by FDIC to open an online savings account. Because without FDIC insurance, the banks can scam and cheat on their conditions as they do not have to adhere to governmental guidelines. So, you should always check that the bank is FDIC assured, before you open an online savings account in it.
To check if a bank is FDIC ensured, simply visit their website and look for a logo of “FDIC ensured” on their home page. And when you find it, you should most definitely check the FDIC’s database to make sure that your bank is, in fact truly ensured and is not lying on its website. If you find the insurance number of the certificate with the bank’s name on it, then you can confidently open an online service account in that bank.
Fees and access of ATM
You need to understand that, you will always be charged extra, whenever you use an ATM that is not affiliated by your bank. So, make sure that the bank you are choosing has either many affiliated ATMs, the likes of which, you can find everywhere you live, work, or travel. Or, the bank promises to reimburse your ATM fees every time you make a transaction.
Both of these factors are quite necessary to note before considering opening an online savings account in that bank.
All in all, make sure the bank you finally choose to open an online savings account in checks out all these parameters and gives you a hunch of a safe place for your money.