Savings Account Online
From LoveToKnow Online
Opening a savings account online can be the key to higher interest rates and increased convenience.
Opening a Savings Account Online
The Internet has made numerous financial transactions easier, from paying bills to opening new accounts.
Applying for savings accounts online can have additional benefits besides convenience. If you keep an eye out for promotions, you may receive extra money for opening a new account, and sometimes you can earn even referral fees if you convince family and friends to open their own accounts. Online banks also tend to offer higher interest rates, taking advantage of their lower overhead costs.
Your Local Bank
Many traditional banks offer information about their services online. Search for your current bank's website to see what online options are available. Even if you're not allowed to actually apply for a savings account online, you may be able to compare your interest rate options and potential fees. Taking advantage of your current bank's online capabilities can be a good first step towards total online banking.
Bank of America
Bank of America has invested heavily in its online presence. It offers regular savings and money market savings accounts with online applications. An informative chart compares your options. If you're still not sure which option is best for you, get help from a Bank of America associate through a live chat feature.
ING Direct
ING Direct has become one of the biggest names in savings accounts online, partly through a referral program and partly through its relatively high interest rates. ING Direct is a purely online bank. The company is Dutch in origin, offering banking, insurance and asset management to clients in more than 50 countries. In addition to its operations in the United States, ING Direct has divisions in Canada, Australia, France, Spain, Italy, United Kingdom, Austria and Germany.
Online Banking Security
You should always follow general Internet safety practices when banking online. Only submit sensitive data like account numbers and passwords on secure sites. When you come across an online bank you've never heard of before, take the time to research it. The site should provide information about the company, its background and any parent companies or investors. All banks should be FDIC (Federal Deposit Insurance Corporation) members, meaning bank deposits are insured up to $100,000. If an online bank is not FDIC-insured, don't deposit your money with them. In general, if anything about a site makes you feel uncomfortable, don't submit any personal information, and certainly don't give them your hard-earned money.
Having a savings account online may make you more susceptible to phishing schemes. These emails say your account has been compromised, or an unauthorized transaction has been attempted, and you need to verify your account. When you visit the link provided in the email, they ask for your Social Security number, account number, password and other information that can lead to identity theft. Make sure that you never click on a link in an email that professes to request online account information. Most banks won't send such vital information in an email, but if you think that it may be a valid email, go directly to the bank's site and check your account there.
Online businesses come and go, which can be a concern when your bank is an online business. However, no online bank has ever suddenly disappeared, taking its clients' money. When online banks do go out of business, they are typically just absorbed into another bank or financial service as part of a corporate buy-out. For instance, when X.com, one of the first online banks, was bought out by PayPal, the X.com accounts were simply converted into PayPal accounts.
With a little research and caution, you'll have nothing to worry about and can enjoy your newfound banking strategies.
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This page has been accessed 948 times. This page was last modified 11:37, 31 March 2006.
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