Savings Account Online Guide

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





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What is a Minimum?

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?

As part of their marketing packages all savings accounts online list a minimum required amount of funds you need to open an account with. In the offline world this was a big thing. I remember my first offline savings account right after college had a minimum of $300. In the past, accounts required too much paper work to be worth the bank's time. Banks would want insure they had a decent amount of money in your account to be worth their paperwork effort.

Today, you will find that most online accounts require only one dollar to open. Electronic funds are easier to manage and require minimal paperwork, so they encourage you to open accounts.

Just be aware that some banks have a monthly minimum you must maintain or you may incur a penalty of some kind. This usually only applies to high rate accounts. They require this high minimum and as a reward you receive a slightly higher rate than other accounts available at the time. I often see this on accounts that are tagged as Online Money Market Accounts.



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