Internet Savings Accounts | What to Consider When Creating a Savings Account Online

Opening a College Savings Account Advantages and Disadvantages of Using a 529 Qualified Tuition or Prepaid Tuition Plan or a Similar Education Savings Account
If you are a parent, grandparent, or legal guardian of a child who is interested in saving for his or her higher education, there are many options that can help alleviate some of the tax burden from that investment. Unlike money in a parent, grandparent, o

Defined Tag: Internet Savings Accounts.
Most banks today allow their users to create savings accounts online. There are a number of benefits that come with being able to manipulate and view your savings account online, including the ability to check a line-item transaction history of your account, as well as make transactions and pay bills online.
But this is fairly standard - and comes with whatever bank you choose -- so what should you actually look for when selecting a bank for your online savings account?

The first thing you will want to consider is convenience. Although convenience is probably the reason why you're starting the account in the first place, you have to figure out whether you have any reasonable means of depositing money into an account at the bank in question. For instance, if you plan to create a savings account online with Bank of America, but there are no BOA branches anywhere near where you live -- and your job does not give you direct deposit as a payment method -- then using this account might actually be less convenient that doing everything on paper. In contrast, if you can use direct deposit as an option, you will want to review each bank's policy for payment options. Some might not offer online payment methods for the bills you need to pay.

The second thing you will want to consider is the interest rate on the savings account online. While a 4% interest rate might look attractive, it is actually considerably smaller than that when you adjust for inflation (i.e., with an inflation rate of 3%, your annual yield would actually be 1%). If you scour all of the savings account online options, you should be able to come up with a number of accounts with interest rates approaching 4.5 to 5%.

The last thing you will want to consider in a savings account online is transferability—or how what options you have with your money. For instance, can you move your money from your savings account into a checking account? And can you move money you aren't spending into a long term, higher-yield CD?


Savings Account Articles \| Savings Account Links \| Savings Account for Sale \| Savings Account Sitemap
Opening a College Savings Account Advantages and Disadvantages of Using a 529 Qualified Tuition or Prepaid Tuition Plan or a Similar Education Savings Account Business Savings Accounts Children Savings Account College Savings Account Compare Savings Accounts High Interest Savings Accounts Instant Savings Account Interest Rates For Savings Accounts Internet Savings Accounts Medical Savings Accounts Savings Account Calculator	What to Consider When Creating a Savings Account Online Opening a College Savings Account Advantages and Disadvantages of Using a 529 Qualified Tuition or Prepaid Tuition Plan or a Similar Education Savings Account If you are a parent, grandparent, or legal guardian of a child who is interested in saving for his or her higher education, there are many options that can help alleviate some of the tax burden from that investment. Unlike money in a parent, grandparent, o Defined Tag: Internet Savings Accounts. Most banks today allow their users to create savings accounts online. There are a number of benefits that come with being able to manipulate and view your savings account online, including the ability to check a line-item transaction history of your account, as well as make transactions and pay bills online. But this is fairly standard - and comes with whatever bank you choose -- so what should you actually look for when selecting a bank for your online savings account? The first thing you will want to consider is convenience. Although convenience is probably the reason why you're starting the account in the first place, you have to figure out whether you have any reasonable means of depositing money into an account at the bank in question. For instance, if you plan to create a savings account online with Bank of America, but there are no BOA branches anywhere near where you live -- and your job does not give you direct deposit as a payment method -- then using this account might actually be less convenient that doing everything on paper. In contrast, if you can use direct deposit as an option, you will want to review each bank's policy for payment options. Some might not offer online payment methods for the bills you need to pay. The second thing you will want to consider is the interest rate on the savings account online. While a 4% interest rate might look attractive, it is actually considerably smaller than that when you adjust for inflation (i.e., with an inflation rate of 3%, your annual yield would actually be 1%). If you scour all of the savings account online options, you should be able to come up with a number of accounts with interest rates approaching 4.5 to 5%. The last thing you will want to consider in a savings account online is transferability—or how what options you have with your money. For instance, can you move your money from your savings account into a checking account? And can you move money you aren't spending into a long term, higher-yield CD?
© 2008, Savings Account - All Rights Reserved Worldwide \| Savings Account Legal Information