Open Online Savings Account
Make Saving a Habit
Opening a savings account is one of the most important things that you should do.
Not only does it give you a cushion for the tough times and unforseen disasters, but it helps to teach children the
importance of saving. Opening an online savings account is not only easy, but it is convenient as well. It is
important that you make saving a habit. While this may seem difficult in the beginning, in time and with practice,
maintaining and contributing to your savings account will become second nature.
Many financial experts suggest that
you should pay yourself first...in other words, you should put some money away into a savings account before paying
your bills. If you adopt this habit, you will find that in time your savings will accumulate into a substantial
The rule of thumb is to put away
10-15% of each paycheck into a savings account. If you find this difficult to do by yourself, you can set it up so
that your bank automatically deposits a set percentage into a savings account. This can also be done for those who
have direct deposit.
Start searching for online savings
With rising costs of everything from food to shelter, planning ahead is even more
important. No one wants to be in their golden years and have to work a minimum wage job when they should be
enjoying their retirement. A savings account online is an interest bearing savings account that can help you
prepare for your retirement.
Be smart and start saving early. It is imperative that you keep a 6 month to 1
year reserve in savings, so should anything come up, you'll be prepared. You never know when tragedy will strike
and if it does, it pays to be ready.
Open an online savings account and tie it to your checking account. This allows
you quick and easy access to your deposited funds. In addition the interest rates are higher than regular savings
account, thus allowing your savings to grow at a much faster rate. Offshore bank accounts, money market accounts,
certificates of deposit (cd), and other types of high yield savings accounts allow you to grow your money at a much
faster rate than regular savings accounts.
Knowing that you have to open a savings account and start saving is not enough.
The question of how becomes very important. Everyone wants to save, but not everyone feels that they make enough
money to be able to save some of it. There are emergencies that force us to spend that little that we had saved and
before you know it, you’re back to square one. A little bit goes a long way. You don’t have to wait until you have
several hundred dollars or even $100.
You can open an online savings account today and
start saving for your future, in some cases, for as little as $25. There are still some credit unions that will
allow you to open a savings account with no minimum deposit requirement. Money market accounts and certificates of
deposit or CDs as they are commonly called are other viable options to start a savings account. Those options
however, are a bit more restrictive and come with certain penalties, so for the sake of simplicity, I will focus on
online savings accounts.
You might ask yourself what depositing $25 into a savings account will do. $25
does not sound like much money and it isn’t, but you have to start somewhere. Getting started on a savings account
is the hardest part. Once you get started, you will be surprised how quickly your savings can grow.
There are many online savings account that are paying
upwards of 3% interest on your savings. While 3% does not sound like much it is a lot more than what many banks
are paying you to leave your money in their bank. Not only that, but you have to look at the rate of
compounding. Compounded interest is what makes your money multiply. Daily compounded interest will grow your
money much faster than annual compounded interest.
With the high interest rates that are being paid by online banks, opening a
savings account online lets you get the best interest rates available on the market. Online savings accounts are
essentially high yield savings accounts due to the high rate of interest that you can earn from opening a savings
account with them. With all of the benefits and perks that are offered by interest savings accounts from online
bank accounts, they are the best online savings accounts and definitely a great place to deposit your
Offshore savings accounts are savings account normally associated with the
wealthy. Offshore bank accounts are also known to pay higher interest than a traditional bank savings account. If
you were to try to open an offshore savings account, you would have to understand the offshore banking laws and
follow the proper procedure in order to open an offshore savings account. Basically, you would have to jump through
a lot of hurdles in order to actually get an active offshore savings account. Why go through all of that hoopla
when in some cases, you can simply open an online savings account online? With the high rates of interest being
offered by internet banks and all of the perks that they are offering in order to get your business, why bother
looking anywhere else?
Take Ally Bank for instance, they are an internet bank with some of the best
offers on the market right. You can open a high yield savings account with them and fund it with any amount. With
Ally Bank, you can earn a higher rate than traditional savings and get free online banking transactions. You can
even open a savings account with them with $0. There is minimum balance and there are no monthly maintenance fees.
Interest is compounded daily, which allows you to maximize your earnings. There are transaction limitations, so you
should consult the bank requirements for more information. Ally Bank doesn’t have a direct deposit requirement like
many banks, in order to avoid monthly fees, they simply don’t charge any. With all of these benefits and daily
interest compounding, this is an online savings account that’s definitely worth looking into.
InG Direct is another online bank with great benefits and excellent interest
rates. Capital One has an InterestPlus Online savings account that allows you to earn 1.10% APY with a balance of
$1,000 or more. Much like Ing Direct and Ally Bank, they offer one of the highest rates among top national banks.
In addition, you can receive a 10% bonus on your interest earned. You can also get a quarterly bonus based on your
interest earned with an average balance over $10,000, or an active Capital One credit card, and there are no fees
associated with their InterestPlus Online Savings Account.
While these are only a few examples, there are a lot of online bank accounts that
offer great rates, no fees and excellent service. There is no excuse not to save. Remember to start with whatever
amount that you currently have. Continue making contributions to your savings account from each paycheck. Every
little bit helps and it all adds up in the long run. Get an account with daily interest compounding for maximum
$50 per month put away in an online savings account without even calculating the
interest is $600 at the end of the year. Double that to $100 per month and without even factoring any interest into
it and you have $1200 by year end. If you are able to get a part time job and are able to save $500 per month, you
year-end total without any consideration of the interest will come to $6000. When you factor in the concept of
compounded interest, your money begins to work even harder for you. Start saving today and before you know it, you
will have a small fortune tucked away for your future.