An online savings account is one of the easiest ways to get the most out of your money. As a traditional at your local bank savings account, an online savings account allows you to store your money safe while earning interest, offering guaranteed returns without risk. However, given that online banks are doing business over the Internet rather than in brick and mortar locations, they are able to save on operating costs. Online banks can then pass that savings on to customers in the form of higher interest rates than those offered by traditional banks.
Although a high annual percentage yield is obviously important, the rates fluctuate over time. There are several other factors to consider when choosing an online bank. Some banks with the highest rates also have many strings and conditions such as high minimum balance requirement, or APY that moves based on your balance or decreases considerably after the initial promotional period. The quality and availability of the customer service of online banking should also be taken into account, as well as the ease and convenience of banking online interface.
Therefore NextAdvisor.com reviewed and compared several of the best online savings accounts. We also created a page of frequently asked questions to help educate consumers. For more information, take a look at our new online savings account reviews and comparison chart.