Savings Account Online Guide

Helping you get the most out of your Online Savings Accounts!





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How Does FDIC Insurance Work With Online Banking?

How Do Online Savings Accounts Work? Menu
  1. What is an Online Savings Account?
  2. Online Savings Accounts vs. Traditional Savings Accounts
  3. What's the Difference between a Money Market Account and an Savings Account Online?
  4. Why do Online Savings Accounts Offer Better Rates?
  5. 10 Easy Tips for Choosing an Online Bank
  6. What is the difference between stating the rate as APY vs. APR?
  7. What is a Minimum?
  8. How Much Money Should I Have In A Savings Account?
  9. How To Signup For An Online Savings Account
  10. How To Manage Your Online Savings Account
  11. How Does The Fed Rate Affect All Other Rates?
  12. When Should I Switch My Money To CD?
  13. Setting Up Online Bill Pay
  14. Using An Online Bank Without Ever Going Online
  15. How Does FDIC Insurance Work With Online Banking?
  16. How Do I Make Deposits To My Savings Account Online?
  17. How Do I Make Withdrawals?
  18. Are There Any Online Banking Fees?
  19. Can I Access My Money Through An ATM?
  20. How Does Customer Support Work With Online Banks?
  21. What Does Completely Online Mean?
  22. How Do I Create a Savings Plan For Myself?

FDIC Insurance is treated no differently wheter the account is online or offline. "The FDIC protects you against the loss of your insured deposits in the unlikely event that an FDIC-Insured Institution fails. If you or your family's deposit accounts at one FDIC-Insured Institution total $100,000 or less, your deposits are fully insured. If you or your family has more than $100,000 at one insured institution, you can still be fully insured if your accounts meet certain requirements. You can use EDIE to determine your insurance coverage beyond the basic $100,000 amount."

Here is an easier way to explain it:

If you are single, for every bank that you have an account with the FDIC will insure up to $100,000. This means if you use Bank A, when you add up the balances of your savings, checking, and CDs any amount over $100,000 is not covered. If bank declares banKruptcy and over all of your accounts you have $110,000. You are out $10,000.

If you're married or have a joint partner, you can get some killer coverage. You can actually get up to $400,000 of coverage between you. Here's how:

Account 1- Take out an account or several accounts in your name. That will get you up to $100,000 of coverage.

Account 2 - Have your husband, wife, or partner create an account or several accounts in their name. This will get you another $100,000 of coverage.

Account 3 - Create joint accounts with your husband, wife, or partner. Because they are in both of your names you get up to $200,000 of coverage.

Let see, That's:

Account 1- $100,000

Account 2- $100,000

Account 3- $200,000

A total of $400,000 of coverage.



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