What Everyone Ought to Know About Online Savings Accounts

An online savings account is an excellent way to grow your savings at a dependable, competitive rate while still being able to access your money whenever you need it.  Many people have a checking account, and may possibly have a savings account, but an online savings account can provide you with many benefits you may not have considered.  Here’s what to know before you open an online savings account – and how to make sure you’re getting the most for your money.

As you deposit money into an online savings account, your money will continue to earn interest as long as you keep it above the minimum required amount (usually $1,000). This means that your deposits keep earning money for you all the time – even while you’re sleeping.  With an online savings account, you can even link it to your checking account to help you avoid overdraft charges and fees.  Having an online savings account is an excellent “fail-safe” way to protect your checking account from maintenance or overage costs while also encouraging you to save money and earn interest.  It certainly beats stuffing your money into an old coffee can and hoping for the best!

Unlike investing your money in the stock market, which can make you money or cost you money, putting your cash in an online savings account is secure.  For FDIC member banks deposits are insured up to $250,000 per account type, per customer.  With FDIC insured deposits, your money is backed by the full faith and credit of the U.S. government.

Many people are interested in opening an online savings account, but may have some reservations about computer safety and security.  You’ll be glad to know that today’s best banking websites have systems in place that fully encrypt your personal, private and transactional information, so that whether you’re transferring money between accounts or checking your balance, you can feel confident that your money is secure.

Of course, it’s important to note that you should always follow common sense computer safety measures when dealing with an online savings account, just as you would with any other financial transaction.  You should choose a password that’s easy for you to remember, but hard for others to guess.  And you should always keep your computer up to date with the latest Web browser, antivirus software and anti-spyware software.  When setting your password, be sure not to set it to something like a pet’s name or a birthdate, as these can easily be found through social networking sites and then used to compromise your account.

All in all, following these steps can help you experience the freedom, flexibility and convenience that come with being able to manage an online savings account directly over the Web.  Plus, you’ll continue to be rewarded by being paid interest on your account.  Once you see just how easy and user friendly the process is, you’ll wonder how you ever did without it!

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