Savings Account Online Guide

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





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How Do I Create a Savings Plan For Myself?

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?

Savings plans are pretty easy to put together. I would caution you again that you only want to keep a maximum of six months salary in your short term savings. Any money beyond that should be invested in a solid market investment, retirement, or college funds depending on your situation. I would advise you to get a finanical advisor at that point. Anyone who is half way decent pays for themeselves in tax breaks alone. Give them a year, if they are not paying for themselves try out the competition.

I usually save for a target of somekind. I create a budget for myself by tracking one full month. I track everything down to the $3.50 I spent on that quick visit to hot pretzel stand. From their I subtract everything I made that month. I don't hesitate to buy anything I would normally buy myself, so I can get an accurate picture.

After I know how much I make and how much I spend, I subtract the two and come out with my month surplus. In some cases, it is zero. Then I identify the new savings goal. It may be a television, a trip or just about anything. I then take one third (1/3) of my month surplus and stick it in an online savings account. In fact, I use my HSBC online account specifically for savings for new acquisitions or goals that suit my fancy.

Now obviously you can't do this all time. On months that I am not doing this, I will put that 33% towards retirement or the kid's college fund. I try to re-evaluate my surplus any time my wife and/or I receive a raise of any kind.



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