Online Savings Accounts - High Rate CD Accounts | Saving Money for Kids » savings account

Online Banking Checking Savings Accounts | Bank Review: EverBank

High Return Savings Account — Wed, 23 Dec 2009 13:03:22 +0000

Which online banking / checking / savings accounts are best? Consider what you expect from an online banking experience, and consider how my sponsors fare in that regard as I review each of my sponsor banks in turn. We'll begin with EverBank - a full service financial firm based in Jacksonville Florida.

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High Interest Savings Account Online Makes Sense

High Return Savings Account — Thu, 19 Nov 2009 21:13:40 +0000

Having a high interest savings account with an online bank these days just makes sense. I don’t particularly care whether you choose a money market account, a savings account, or even a high rate CD for that matter. Whatever account type suits your needs, you are far more likely to earn a respectable rate of interest on your deposits. Online High Interest Rate Savings Accounts Keep Up with Inflation The nice thing about using an online high interest savings account is that the competition for deposits is so high that online banks are forced to quickly adjust their interest rates to market conditions. If rates suddenly start rising at other banks, your online bank is going to follow suit in order to remain competitive. Given that savings account interest rates rise and fall with real interest rates and inflation it only stands to reason that a online high interest savings account is going to keep up with inflation. Aren’t Savings Accounts for Old Folks? The old thinking was that putting money in a savings account or CD was for retirees living on a fixed income – but I’m betting more than one 40-something year old has watched his or her [...]

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Free Online Savings Account | Are Free Savings Accounts a Scam?

High Return Savings Account — Sat, 26 Sep 2009 11:58:58 +0000

People looking at a free online savings account have to be asking themselves, “Is this a scam?” I mean how on earth can a bank afford to offer a free online savings account when every other bank is charging me fees up the yin yang just for the privilege of allowing them to hold MY money. Online Banks Have a Lot to Gain from Nationwide Savings Deposits Online banks specialize in managing the short term deposits of customers like you and I. They have become specialists in understanding and predicting the cash flow needs of consumers willing to leave their money in a bank that is not local. Savers who go online looking to open a free online savings account are more likely to treat that deposit like a CD – ie. not touch it for an extended period of time. The longevity (length of time) deposits stay in online accounts is usually considerably greater than that of local accounts. As a result the online bank has a greater ability to pay higher interest rates and offer the accounts without service charges. What Is the Catch? There Must Be Some Reason Online Savings Accounts Are Free The catch is online [...]

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High Yield Savings Account | Why Bother at Present Rates?

High Return Savings Account — Fri, 25 Sep 2009 12:26:01 +0000

People ask me why open a high yield savings account these days when rates are only 1.35%? In all fairness that is a good question, because there are plenty of higher paying CDs out there – but CDs as we know have their problems too. Making a decision to open a high yield savings account when rates are so despondently low these days doesn’t seem like a good use of spare cash – but there are benefits to doing it. Let’s look at a few reasons. Inflation May Be at Historic Lows Presently I recently saw in my savings bond email that the inflation rate for the inflation adjusted savings bonds I own was actually negative for parts of the last twelve months, indicating that we experienced a period of DE-flation. Deflation was one of the great cataclysms of the Great Depression of the 1930s. Deflation is a price scenario when the price of goods is dropping (think automobiles over the last year) and yet no one is buying. Note that automobile sales didn’t pick up until the government stepped in and started shelling out cash for clunkers to get cars moving. Watch what happens to auto sales once the money [...]

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Open a Savings Account Online | A Simple Way to Keep Up with Inflation

High Return Savings Account — Thu, 24 Sep 2009 01:00:24 +0000

Open a savings account online and you will be sure to keep your liquid reserve cash earning income at today’s most competitive short term interest rates. Leave your money in your local brick and mortar savings bank and watch inflation annihilate your cash reserves’ buying power. Simple Economics – Inflation Rate vs. Interest Rate The header to this paragraph may seem intimidating but once you see the concept explained it will be ridiculously simple. Trust me, you will not need a bachelor’s degree in Economics to figure this out. Ready? If the inflation rate is higher than your savings interest rate your savings account cash loses buying power every day. If your interest rate is higher than the inflation rate, your savings account cash gains buying power every day. What’s the lesson? Make sure as much of your savings account money is earning more than the rate of inflation as humanly possible. How do you do that? Open a savings account online. Why Open a Savings Account Online? Why Do Online Banks Pay Higher Interest Rates? I would hope the answer to the first question should be now obvious. An online savings account will pay higher interest rates, hopefully at [...]

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Best Savings Account for Kids | Online, High Rate, and Linked to Local

High Return Savings Account — Wed, 09 Sep 2009 14:30:56 +0000

People frequently ask me what is the best savings account for kids and I figured at this point I may as well write a post about it. I like to talk and write alot about teaching home finance to kids and adults and the basic workings of moving money around efficiently using online savings accounts are really good low risk ways to teach all the skills necessary for bigger topics later. Topics common to most people wanting to live the American dream might include how to prepare your finances to buy yor first home, or how to manage credit cards and such. In truth in order to learn my methods you need to learn to walk before you can run. In this post we start with a little walking. Do Online Banks Offer the Best Savings Account for Kids? I believe the best savings account for kids is an online account linked back to a local savings account. I think it is important very early on to educate children about the differences between rates of return and the usefulness of both types of banks (local and online). Both types of saving and loan banks serve a purpose for families and [...]

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High Interest Rate Savings Account Online | A Good Place for Non-Emergency Cash

High Return Savings Account — Tue, 08 Sep 2009 19:16:37 +0000

A high interest savings account online is a smart way to manage money saved for a rainy day when (as best you can tell) the skies are clear and the outlook relatively sunny. I go a little overboard with online accounts in all honesty… they’re so easy to manage when you have the right software, it behooves you to have a couple of online accounts in order to take advantage of the different offers at any one time. Obviously the bulk of your cash reserve savings will be in one account or the other, but I can’t tell you how many times I’ve been thankful to have a few extra hundred dollars in that second high interest rate savings account online. How Can These Online Banks Offer Interest Rates That Are So Much Better? Banks are able to offer a high interest rate savings account online because of the economies of scale afforded by being on the internet. Because these online banks are able to attract and service a large number of customers without the overhead costs associated with brick and mortar facilities they are able to make high interest rate savings account offers. Banking is very much a numbers [...]

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Best Online Savings Account | High Interest Rate, Stability, Service

High Return Savings Account — Sun, 23 Aug 2009 19:39:46 +0000

Your best online savings account is going to have to be reliable – as your savings account online should be a second line of emergency liquidity after your checking account and linked local savings account. You expect to receive a higher interest rate with an online savings account and rightly so – but you should always have it in the back of your head that your savings still need to be accessible in dire times. What factors might enter in your decision to take less than the highest yield available? Is the bank a member of the FDIC? If not, skip it Did the bank or its parent company receive TARP money in the bailout? - If so your funds could be temporarily unavailable should the bank come under distress again – FDIC or not! Is the bank owned and operated in the United States under U.S. Law? - If not your bank and accounts may be subject to laws and restrictions of other jurisdictions Does the bank or its parent operate other much riskier lines of business? - If so failures of those business lines could potentially impact YOUR funds availability Bank failures aren’t supposed to happen that often, [...]

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