Online savings accounts typically yield higher returns compared to local banks. This is due to the lower operating costs offered from an online bank, allowing them to provide higher rewards to their customers. When you are looking for the best rates on savings accounts it is smart to turn to rate comparison charts. These charts will break down the various aspects of a savings account like the APY, account fee, balance requirements, and many other account features.
The Best Internet Savings Accounts
There are several banks you want to compare rates with but overall the online comparison charts will be able to do most of the hard work for you. It is a smart idea to consider the banks that are listed at the top of the charts over a consistent time period. Sometimes people end up chasing rates and this causes you to miss out on the best online savings accounts as you don’t recognize the account fees and other things that can diminish your savings. Check over the history of online banks that continue to lead the way with savings accounts. Here are some of the best internet savings accounts out there:
- ING Direct
- Ally Bank
- Sallie Mae
The interest rate on savings accounts can change on a daily basis. Since the interest rates are controlled by the Federal Reserve, it is smart to compare rates often and to find out which online banks have been able to provide customers with consistent rates and low account fees. Use rate comparison charts like our chart that is updated daily to help you see a snapshot of the best internet savings accounts out there:
Making Account Comparisons
While the savings rate is always the main thing to look at you also need to consider other elements that can help you to find the best banks for your savings. Review all the account terms and conditions pertaining to the savings account. This will help you to see if you have account fees to maintain the account along with balance requirements and other account restrictions. Always learn about the account terms before opening an account or you could end up paying more money to the bank just to have a place to keep your money safe.
The withdrawal limit is something you must also consider when you are making savings account comparisons. It is important to know about how much money you tend to put into the account each month and how much you will pull out. Some banks have limitations on how many withdrawals you can have from the account each month, which can cause issues for some customers. The bank may also charge you if you do not maintain a certain balance limit on the account.
How quickly will you be able to access your account? When you deal with online savings accounts it is common to have the money transferred from your savings account and then it will remain in this account unless you decide to transfer it back to your checking account. In some cases the transfers between the accounts can take up to 5 business days. If you need your money instantly, it is a smart idea to look for an online bank that does allow for ATM withdrawals so you can get your money out sooner.
Online Account Access
If you choose to work with a local bank, it is likely that they will also provide you with online account access. This is something you need to consider as you compare rates on savings accounts as you need to have easy access to the account. Online account management can be easy to use as long as you are comfortable with the website. Not only do you want to make sure the website is easy to navigate and for you to use, you must also check on the security of the website. It is vital that the website is secured, as this will protect your financial information. It’s also a smart idea to install firewall and proper anti-virus protection as well to prevent your personal information from being compromised. Create a difficult password for your online savings account as this too will give you more protection when you are banking online.
History Of The Bank
One of the other vital aspects to selecting the best bank to work with also comes down to learning about the history of the bank. The best savings account rates may not be offered from banks that have solid reputations. The history of the bank matters as this allows you to know that your money will be safe and secure in the bank. If the bank fails, will you be able to get your money back? As long as you are investing your money into a bank that is secured by the FDIC, you shouldn’t have any worries about your money up to $250,000. Call the bank and talk to a customer service representative to see how friendly and helpful they are. This also gives you some insight into the type of bank you are working with as the best banks take time to properly train their staff to really help their customers.
Are Promotions Worthwhile?
When you are searching for the best rates on savings accounts you also need to consider the banks that are offering promotions. Typically the promotions for new customers will come with a matching deposit amount or the bank will waive fees. Look into the promotion and read the fine print to make sure this isn’t something that they are just planning to offer you for a few months or weeks. Short-term promotions are usually used just to help the bank find new customers and they rarely offer promotions to existing customers. ING Direct did offer referral promotions, which has helped a lot of their existing customers build up their savings quickly.
Consider all of these items as you are focused on finding the best rates on savings accounts in order to build up your savings in a timely manner!