Online Savings Accounts
- Image via Wikipedia
Savings accounts are the best way to save money. If you like doing business using the convenience of the internet, opening an online savings account might be a good option. Some people may be a little bit wary of opening a savings account online. But all of the legitimate financial institutions have the same protection as their brick and mortar counterparts.
Online savings account deposits are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor, per insured bank.
In some cases, online accounts pay more interest to depositors because the financial institution does not incur the expense of operating branches. Many require no minimum or a very low balance to keep the account without fees.
Online Savings Bank Information
When you sign up for an online savings account, you will do so on a secure website. You will apply with the usual information. This will include:
- Your social security or Tax ID number
- Your driver’s license number
- You current bank account and routing number
- If you are applying for a joint account you’ll need the personal information of the other applicant
- If you are a non-US citizen, you will have to have your green card or passport information
Online Savings Bank Transactions
When you open an online savings account most of your transactions, including deposits and withdrawals, will be made online:
Deposits: Many online savings accounts will require you to have another bank account that you can transfer funds from. This means you’ll have to provide your account and routing number. Transfers are usually ready in one to two days.
You can also do online deposits using a deposit slip, writing a check and sending it in the mail. Make sure you put the account number on the check so it can be deposited in the proper account.
Some online savings accounts will issue an ATM card to make it even more convenient for you.
Withdrawals: If you need to make a withdrawal from your savings account, just go online and do so. You will transfer the funds to the bank account you established when you opened the online savings account.
Shop around very cautiously for an online savings account. Not only are there many different features to choose from but you have to make sure that the account is legitimate and your money is insured by the FDIC. Make certain it is a real financial institution.
