Things You'll Need:
- internet access
- checking account
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Step 1
Decide if an online savings account is right for you. The great thing about these types of accounts is that you earn a lot more interest than you would with a savings account at your local bank, and that interest can add up fast. The flip side is that any withdrawals you make from your online savings account will take several days to process – you can’t have instant access to your money. If you’re serious about saving and won’t be needing to make sudden withdrawals on your account, an online savings account is the way to go for you! If you regularly juggle funds from one account to another, however, or have trouble committing to saving, the access issues may frustrate you.
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Step 2
Do some research to see what online savings account is right for you. Several popular banks people tend to work with include ING Direct, FNBO Direct, HSBC Direct, and Capital One. Compare bank ratings, customer service ratings, APY rates (that’s the amount of interest you’ll be earning on your account), and accessibility ratings to see what bank will work best for your new account.
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Step 3
Go to the website of the bank you’ve chosen and click on ‘Create an account.’ You will be asked a number of questions, including your name, address and contact information. You will also be asked what the routing number and account numbers are for your current checking account. You do not have to have a checking account with the same bank as your new online savings account – the online savings account will create a link with your checking account at your current bank and will authorize the deposits you set up. You can choose whether you will have sole access to your savings account, or whether you will share access to the account with another person – typically a spouse or a partner.
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Step 4
Decide whether you’re more comfortable with an automated savings plan – in which you authorize a regular deposit of a certain amount of money to be taken out of your checking account on a weekly, bi-weekly, or monthly basis and automatically deposited into your savings account, or whether you’d prefer a savings plan in which you deposit whatever amount you’d like from your checking account into your savings account on a single-transaction basis. Many people prefer to set up an automated checking debit that comes out on their payday, so they never even miss the money that’s going into savings. People who sometimes struggle with bouncing checks or overspending their budget, however, may prefer the security of always knowing they have control of how much money comes out of their checking account, and when it comes out. Whichever option you pick, most banks offer you the option to change your mind whenever you like.
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Step 5
Once you’ve authorized your savings plan and verified that all the information on your online savings account is correct, make sure you note your customer number, login ID and pin number. Write this info down and put it somewhere safe, so no one can access your info but you (and your partner, if you’ve set up a joint account).
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Step 6
The bank you’re saving with will send you an email asking you to verify that your email address is correct. They may also deposit two very small amounts of money, typically under $1 each time, to make sure the checking account information you gave them was correct. Once you’ve verified that your email address is correct and that you’ve received these payments, you’re set to start saving. Congratulations – you just created an online savings account!
