Tuesday, May 26, 2009

Online Savings Account Basics

Saving accounts are always a good thing, in the past it used to take some time until you could have opened an account and it would be time consuming to check up on it every now and again, the internet has changed all of this and now internet banking allows you to open your own internet savings account with a press a few clicks, and it also allows you to do your research work just in front of the computer screen.

Did you ever have a problem about where to keep your money? Well, maybe it is time to consider applying for a savings account. The most convenient way of keeping and saving money is by going to your local bank and opening a savings account. Savings accounts offered by banks pay interest; however, you cannot issue checks against this type of accounts.

Savings accounts cannot be used like money as one would use a current or on-demand account. Nevertheless, savings accounts commonly offer higher interest rates than on-demand accounts and provide unrestricted access to funds even without the check-issuing privileges. Savings account transactions are usually summarized in either a passbook or a bank statement mailed to you each month.

Savings accounts comparatively have small opening balances required. There are banks where you could open a savings account for just a dollar; after which, you are given a few days or weeks to raise your account to the required minimum balance, say a hundred dollars a month. These accounts may charge you for maintenance fee whenever your savings account falls below the required minimum balance.

The interest earned on savings accounts can be widely varied. Most banks give as little as one-fourth of 1% annually. For most people, interest rates offered by savings accounts are too low, if not downright unfair. If you want to earn higher interest, you might consider opening high-yield savings accounts that are found online.

With the increasing popularity of Internet banking, high-yield savings accounts have become more widespread. High-yield savings accounts have become prevalent, as virtual banks are able to offer very competitive interest rates by maintaining only a handful of retail locations thereby lowering operating costs. Plus, as transactions become more automated and dependent on computer cyber highways, customer service overhead has become negligible for virtual banks.

An online bank account that commonly offers high-yield savings accounts, is relatively simple to open. However, not everybody may feel comfortable with such type of account because it will require submitting personal information over the Internet that could ruin one's privacy. Also, if ever you enjoy walking to a local bank and talk to the bank manager every time you want to make a deposit or withdrawal, high-yield savings account may not be right for you.

By : David Evermon
The internet allows you to set up a saving account in a few minutes, and you can do that from home, which gives you an advantage because you can research and compare different saving channels. Learn about how to set up your Online Saving Account at http://savingaccount.advice-tips.com

Thursday, May 14, 2009

A Useful Guide To Savings Accounts

A saving account is opened by an individual and is maintained by the credit unions, banks, as well as other financial organizations. These accounts reimburse interests on the money which is deposited into the account. But, the capital is held into the savings accounts and can't be spent openly like writing a check.

Savings accounts mainly focus at permitting the account holders setting aside one portion of liquid assets like a fraction of the savings approach. Those savings accounts which offer better rate of interests to the account owners are preferred, since they allow the savings to accumulate quicker. Therefore, people should compare the rate of interests that are offered by assorted financial institutions in order to find appropriate savings accounts providing best rates.

The sole objective of establishing savings accounts is to put aside one portion of income which will prove handy at the time of emergencies and retirement. Flourishing savings accounts reflects positively on the credit score of account holders since it establishes their advanced money management expertise.

There are various types of plans in saving accounts out of which one can choose the best one as per the requirement and convenience.

1) Offshore savings account: This type of saving account is available for people who are staying as well as working abroad. Offshore accounts facilitate the account holders in protecting their hard-earned assets and wealth. Also, with this kind of account, account owners can conduct their business activities in private and a confidential manner.

2) Health savings account: Such type of savings accounts is designed in order to help the individuals to make savings for upcoming expenses related to medical expenses without acquiring any taxes. The money can only be accessed for medical reasons. Health savings account also works as a retirement plan where you earning a good amount of interest over the period of time which can be utilized during medical needs.

3) Standard Savings Account: With this kind of savings account, the holder can have access to his/her money as many time as he or she wants. Though with this type of account one gets little amount of interest but it is a good start for those who are searching for the right means to being savings.

However, there are few factors that are necessary to consider while choosing an appropriate savings account that include:

- Interest rate savings accounts:

Rate of interest is the sum-total of interest which the bank pays to an individual on the capital money available for an individual's savings account.

- Minimum balance savings account:

There are few banks that charge fees if an individual goes beneath a specific balance and there are few that will simply lower your rate of interests. So, one can go for saving account with low-minimum balance in order that if one ever requires a large fraction of his/her capital, the person would not be charged any fee.

With the coming up of e-commerce facilities, there are number of banks available online that offer an individual with the lowest minimum capital balance and highest rate of interests savings accounts.

By : James Trend
James is the owner of a finance company and enjoys writing articles on finance in his spare time. More articles on savings accounts here: http://www.squidoo.com/useful-guide-to-savings-account