There is no question about it, the Internet has opened up a whole new array of services and online savings accounts are a part of it. Online banking, investments, and online savings accounts have taken off over the past few years. Why? What has fueled this explosion? Actually, there is no one single reason, it's a combination of several that include:
Convenience. You're able to fund your online savings account at any time during the day or night. There is no need to spend time fighting traffic and wasting $4.00 a gallon gas trying to rush off to the bank to make a transaction.
Simple to set up. Starting an online savings account can take all of 15 minutes to get up and running.
Much higher rates of interest paid out. Online savings accounts traditionally pay a much higher interest rate than your neighborhood bank will pay out. Why? Because, there is little overhead with an online bank.
How To Find The Right Online Bank One of the easiest steps in finding an online bank would be to see if the bank you are with now offers all of its services over the Internet. Even if they do, it would be wise to do a little comparison shopping so to speak. Do an online search for Internett banks that offer online savings accounts. Right out of the box I can list 3 very well known banks that offer all types of high yield accounts:
Bank of America
In addition to offering a variety of savings accounts and high yield investments, they also have top notch security measures in place. You should keep security in mind when searching for an online bank.
How Do You Open A New Account? When you find the right online bank to open up a new savings account with the process is pretty straightforward. You'll need to decide if it will be an individual account, or a joint account. You'll then be asked for your personal information and your online savings account will then be your checking account.
Next, the bank will need to verify your information and your checking account by doing a small test deposit. They require you verify the deposit amounts to finish the verification. This will take less than 48 hours.
Now that you're account is verified you can make an opening deposit. You will also receive an information package in the mail that will have your ID numbers, as well as an ATM card to use in making withdrawals.
That's it, you have now opened up your new account. With all of the added conveniences and higher paying interest rates, an online savings account just makes good financial sense.
Mr. Edwards is an expert writer for the website http://www.Banking.InfoFromA-Z.com where he has many more Banking related pieces throughout the site.