Online Savings Accounts

Online Savings Accounts – Grow Your Savings Faster

online savings accounts benefits
Online savings accounts are a great way to compound the interest earned from the financial institution that holds your savings. Should you move your money to an online savings account? Online savings accounts often offer higher interest rates than traditional brick-and-mortar banks, while still remaining FDIC insured to offer the same protection as your traditional banks. Several options for online savings accounts allow you to open an online savings account with no minimum balance and some have low fees or none at all.

If you are comfortable using apps and handling online transactions, online banking could be a great choice to grow your savings faster than a traditional bank.

The difference in the interest earned can be substantial when utilizing the power of these online savings accounts. Discover offers a great graphic that can easily help one to understand the obvious differences between traditional brick and mortar savings accounts vs online savings accounts. The difference earned on a $15,000 balance over the course of a year is substantial. Obviously the larger the account balance, the larger & faster the growth.

online savings accounts benefits

Online Savings Accounts – Top Picks

Offering 1.80% interests with no minimum balance, the Wall Street giant Goldman Sachs currently offers one of the highest interest rates offered on an online savings account that we could find with no minimum balance or deposit via. Great return from a well known brand in the banking industry. Downside to this option is the lack of ATM access.

Discover is usually associated with credit cards, but Discover bank offers high interest rate online banking with almost no monthly fees, seeing 1.75% interest rates on your savings.

Ally Bank offers 1.75% interest rates and is known for easy access to your funds.

Synchrony Bank is a safe place to keep your savings with high interest rates, also offering 1.75% interest rates. However, unlike most other online banking this one gives you an ATM card so you have easy access to your funds without the wait and easy deposits.

High-yield online savings accounts are a great option to grow your money quicker for emergency funds or short term savings goals. When you are searching for a way to grow your money faster for your long-term investments, the better options may be in a 401(k) or IRA or low cost index funds. See more on investing.