If you want an easy way to earn some extra money on your cash reserves, you should get an online savings account. It allows you to park your money in a safe place and earn a high interest rate. Because there is no brick and mortar building, companies can pay a higher rate of return on your money. Online savings accounts are as safe, if not more so, than regular checking or savings accounts at the local bank.
You simply need to have access to the Internet, a bank account, email address, and the ability to transfer funds from another account in order to get started. You still have access to your money at any time because the Internet is open 24 hours a day. Most regular banks have bankersâ€™ hours. Once they are closed, you have to wait until the next business day to complete a transaction.
What are some of the benefits? You don’t need to have the large minimum requirements from your regular bank. Many require thousands of dollars to get started. Or they may request that you open a money market account. This type of account must have a minimum balance. You will get charged a fee when you go under the minimum balance requirement. These fees can slowly add up and eat away at the interest payments that you receive. Many do have a minimum account balance that must be maintained. You can have an automatic deposit made each month to your account to set up your account.
If you have an emergency fund, an online saving account is the perfect place to store it. You know that you will not touch the money unless it is a valid emergency. Your account will grow from the interest payments made.
Other additional benefits from online savings accounts are the ability to pay bills online, and funds can be transferred to different accounts when needed. You might even be able to get a free checking account. Some companies even offer an online CD as an additional type of investment.
Make sure you compare companies to get the best rate. You also want to know the rules for withdrawing your money if you need it. Some companies provide you with a debit card to withdraw funds as well. Will you get reimbursed for any fees that are incurred at any ATM machines managed by other banking institutions? Online savings accounts can help you add more money to your cash balance if you store you money and get a great interest rate.