There is no need to start a savings account with a traditional bank. There are many online banks that offer better savings options for people of all ages. Regardless of your goal, you should consider signing up for one of the top savings accounts online. Some of these banks will do more than just allow you to save your money – they will help you get an interest rate on your money and help you “build” your account.
Online banks don’t have to concern themselves with maintaining branches and physical buildings all across the country. Because of this, they can better afford to offer high-yield rates. Some of them even pay upwards of 2% APY, when the national average is usually no more than 0.1%. Some savings accounts are easier to open than others. If you don’t have much money to start with, look for a bank that allows new accounts with as little as $100.
The reason why people are interested in the top savings accounts is because they want their money to grow but aren’t confident in their ability to invest in other ways, such as putting money in the stock market. Having an account with a leading, financially stable bank is a long-term, yet safe investment. You won’t get rich anytime soon, but you won’t have to worry about losing money either. It will grow slowly over time. If you are able to put more money in every month, you’ll be rewarded with an even higher APY.
FDIC Verification for Top Savings Accounts
Never trust any bank until you are able to verify that it is insured by the FDIC. The Federal Deposit Insurance Corporation is an independent agency created to maintain stability in the country’s banking system. Your money in an FDIC-backed bank will ensure the security of the investment.
The process of starting an online savings account should be easy. Typically, you’ll be expected to provide your SS #, valid state ID, the bank routing / account numbers from the bank account you’ll be using to fund the new savings account, and the details of any joint account holders or beneficiaries (if there are any). Most people these days choose to fund their accounts via electronic fund transfer, but some online banks still allow customers to wire the money or send in checks the old fashioned way. Find out if withdrawals and transfers are subject to limitations, and if so, how many per month.