|
 Online Savings Accounts. If you are looking for maximum
return on your savings account deposits, online banks are probably the first place you should investigate. The
reduced expenses of not having to operate "brick and mortar" physical branches will generally convert
to savings interest rates that are above the national average.
Liquidity and Return.
With savings accounts you have the dual advantages of both liquidity (you can access your money whenever you want)
with a reasonable rate of return. Unlike checking
accounts or money
market accounts, though, you must make a withdrawal to get cash,
rather than the simpler process of just writing a check for the amount you need. In addition, like checking accounts
and money market accounts, your deposits are insured up to $100,000 by the FDIC.
Examples of Online Banks with
Savings Accounts
|
Bank
|
Minimum Initial Deposit
|
Balance Needed to Avoid Fees
|
|
ING
DIRECT
|
$0
|
$0
|
* Annual Percentage Yield
Hints on Online Savings Accounts
|
H
I
N
T
S
|
Interest Rates. To
get the best rate, make sure to compare initial deposit requirements since they can vary and will often affect
the interest rate on the account. |
| Accessing Funds. If
you know you will not need access to the funds for a set amount of time (generally 3 months or more) consider putting
the money in a certificate of deposit, since they will always bring a higher rate of return. |
| Consider money
market accounts.
If you are looking for more flexible access to your funds, you may be better suited for a money market account.
This type of account allows you more access to your funds (by writing a check or making a withdrawal) but still
gets a good return on your money. |
|
