Online savings accounts are one of the newest, safest and best ways to make your money work for you.
What Are Online Savings Accounts?
Online savings accounts are high-yield, FDIC-insured bank accounts that are managed and accessed over the Internet. They can’t be found in stores or at your local bank — they’re entirely online.
For years, brick-and-mortar banks have been robbing you of your savings. They’ve consistently delivered low-yielding savings accounts because there hasn’t been any competition.
Then came ING.
ING Direct, one of the pioneers of online savings accounts, re-invented banking for today’s consumer. Their CEO, Arkadi Kuhlmann, says that they’re looking out for the customer by removing fees and passing along the savings.
When I first found out about online savings accounts, I signed up. And they completely changed my money outlook.
How Can I Get Started Saving Online?
Congratulations! Opening an online savings account is a great first step to saving money.
If you’re on the fence about saving online, know that today’s competition makes it a great time to get started. To help you get over the hump, consider these 10 reasons to open an online savings account.
It doesn’t take much to start saving online.
What Do I Need to Know?
There are 5 important things to look for in an online savings account.
Know what you’re getting into before you open an account. Many accounts are similar, but make sure you get the basics covered.
You should also be aware of some of the pitfalls of online savings accounts. They’re a great tool, but they could be even better.
Don’t be worried about opening an account, though. It’s totally safe (assuming you’re using an FDIC-insured bank) and totally secure.
Which Account Should I Open?
Consider 10 of the best online savings accounts currently available. The list changes all the time, so shop around and find the best rate.
If you’re looking at the right time, some accounts offer sign-up bonuses. Others offer promotional rates for new savers.
Businesses can get in on the saving too — ING, for example, has a high-yield business online savings account.
I Opened an Account — Now What?
Feed you account and watch your savings grow!
You can link your banking account to your new savings account and transfer money (up to 6 ACH transfers per month).
You’ll probably have to confirm a couple of small deposits into your regular checking account, and then you can get started.
Consider setting up automatic deposits to your account to build your savings. You’ll be forcing yourself to save money and your savings will snowball.
You’re money is working for you like it never has before. It’s making money and won’t stop.
A Word of Caution
Now that your online savings account is open, get excited about saving! But don’t worry day-to-day about getting the highest rate available.
Sometimes it’s appropriate to transfer your money to a new online savings account, but being a rate chaser has its drawbacks. You could end up spending more time moving around your money than watching it grow.
The Next Savings Step
First off, a big congratulations on opening an online savings account! It’s a great first step on your savings journey.
When you’re ready to get going, start saving money other ways. There are at least 10 ways to immediately start saving money … and then 10 more ways.