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Step 1
Start with the interest rate. You want to open an online savings account with high interest to make the best return on your money. Make sure you read the fine print - sometimes the best interest rates are only available to customers with a high monthly balance.
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Step 2
Check the fees. Many online savings accounts have low fees, but some charge extra for transfers, withdrawals and low balances. A bank with high interest rates might not be the best deal if they also charge higher fees.
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Step 3
Decide if you want your savings account to be connected or separate from your other accounts. If you already have a checking account with one bank, it may be more convenient to open a savings account with them too. But if you want to 'hide' your savings where you won't touch them, choose a different bank so you won't be tempted when you login to your everyday accounts.
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Step 4
Be honest about your bad banking habits - if you've used an overdraft before, you probably will again. Don't decide you'll "be good" and sign up for an account with higher interest but big overdraft fees unless you're really certain you won't do it again.
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Step 5
Don't be tempted by a good deal unless it's a bank you know and trust. Your deposits should be FDIC insured, and it should be easy to get a physical address for your bank and to reach them on the phone. If you aren't familiar with a bank or credit union, don't deal with them.
Comments
waters said
on 9/26/2009 Good advice on how to choose the best online savings account. 5* and recommended
waters said
on 9/26/2009 Good advice on how to choose the best online savings account. 5* and recommended