Online savings accounts, usually have higher deposit rate than retail banks and credit unions, are more popular now because of higher APY. When selecting an online saving account, it is crucial to find an account that helps the customer get the most of his money.
Listed below are some features to pay attention to when shopping around for online savings account.
- Monthly fees and excess transaction fees can eat into your earnings. Some online savings accounts charge fees if account balance falls below a minimum balance threshold.
- Banks and credit unions vary on the minimum deposit they require to open an account and the minimum balance they require to earn interest.
- If customer using an online bank with no branch access, it is important that customer can access to a customer care representative and responds to customer requests immediately.
- Look for banks with solid online and mobile experiences. Customer need to consider the features that are used the most often. For instance, Make sure mobile deposit is available if customer frequently deposit checks.
- Banks and credit unions vary in how customer can withdraw funds from a savings account. Each institution has its own policies regarding withdrawing funds from a savings account. Check the withdrawal options and the excess transaction fee.
- Look for an account insured by the Federal Deposit Insurance Corporation (FDIC), which provides up to $250,000 in insurance per depositor, per bank, for each account ownership category. At credit unions, make sure the account is insured by the National Credit Union Administration (NCUA).
Therefore, when choosing an online savings account, it is important for the customer to consider his/her financial goals and figure out which savings account features are most valuable.