How to Pick an Online Savings Account

Many online banks (and offline) now offer the added convenience of opening a savings account online. From personal experience, if you open a Bank of America savings account online, you get special privileges you can't even get from the branch. The branch agents don't even know about the online promotions.

Here's how to pick a savings account online.

1. Choose a savings account online by finding the good promotions.

   To pick a savings account online, start by checking promotion websites and messageboards for the latest online savings account promos. Budgetcents.net is a great site for finding a savings account online.

   USAA is also expanding membership, and from personal experience, they are an excellent online bank. Check to see if you are eligible.

2. A savings account online can net you a great interest rate.

   After you find the savings account online with good promo, click through to the websites and call the bank personally.

   You absolutely must test their customer service, because many online banks are smaller and located in other states. This is an advantage because those small banks usually have larger interest rates, but sometimes they only allow people who live in the state to invest. Some accept all money. You need to know the difference.

3. Keep an eye on your savings accounts online because they change interest rates more often than branch based banks.

   After they pass your customer service tests, the next step is to split your money between the top two. Savings accounts online often change their interest rates to match the market, and you need to be able to move to a higher interest rate if one of the banks you are in decides to change theirs.

4. Savings accounts online sometimes have hidden rules. Ask.

   The last step to picking a savings account online is to check their terms to invest. Some require that you purchase a certain number of things every month on a debit card or keep a minimum balance. Make sure you have the cash ready and you can keep up with the rules. Good luck.

Tips & Warnings

• Of course, check that the online banks you will invest with are both FDIC and SIPC insured.

Resources

• Saving for Retirement