Choosing the Best Online Savings Accounts

Savings accounts are the most basic kind of bank account, but many people are not getting savings accounts anymore. Instead, they use checking accounts to meet their everyday financial needs, such as paying rent and buying groceries. Unfortunately, when an individual uses one fluid account for every financial need, bad habits can be created. The biggest problem is that people who are accustomed to looking at one account will see all of the money as available funds, and they will spend all their money as soon as they earn it. They will not save money for emergencies or for their retirement, which not only affects them but puts their families in a tough place. Savings accounts are a safe and reliable investment for everyone. Other investment strategies may have the potential to earn more, but with a savings account the money is insured and accessible. Even if the amounts are small, the money is steadily accumulating. The top three online savings accounts, which are not at what people traditionally consider the big banks, are Synchrony at Synchrony Bank, American Express Personal Savings and Marcus by Goldman Sachs. 

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  1. How much interest do these savings accounts earn?
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    Many savings accounts not only don't pay interest, but instead they charge customers for holding their money. These accounts are outstanding because they pay interest instead. The savings accounts at Synchrony and American Express pay 1.55% APY, and the account at Goldman Sachs pays 1.5% APY. You can earn even more interest by choosing from high-yield savings accounts.

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  2. What are the most important factors to consider when choosing a savings account?
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    With an online savings account, the bottom line is the customer's top priority. They need to know that their money is growing, not shrinking. It is important for them to check carefully so they understand what kind of fees are charged, and how the account earns interest.

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  3. Do these online accounts have great mobile apps?
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    These online options feature amazing mobile banking apps that make managing your savings a breeze. Add funds, check your balance, withdraw cash and more from your computer, tablet or phone.

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  4. How Can a Minimum Balance Affect a Savings Account?
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    In the beginning, there may not be much to put into a online savings account. Also, funds may be depleted after an emergency or other investment. In those cases, it would be important to make sure that there will be no punishment, like fines, for being under a certain amount. 

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  5. Do These Accounts Have Minimum Balance Requirements?
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    One of the biggest reasons these 3 accounts stand out is that there are no minimum balance requirements. That means that the account can start small and the money will steadily accumulate as long as it is not touched by the owner.

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  6. How Is It Possible to Bank Without a Local Branch?
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    As an example, there is only one physical branch which the Synchrony customers could visit. Even without being able to go to a local branch, all banking transactions can be conducted in other ways. Transactions can be done online, including by direct deposit and online bank transfers, as long as there is a secure online system set up. More traditional customers may want to conduct some business through the mail.

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  7. Can Someone With am Online Savings Account Use a Local ATM?
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    Many online accounts offer a debit card and access to local ATMs, so anyone who wants to use the account that way should research which ATMs will be available for use. The Synchrony account particularly is known for allowing access to many ATMs.

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  8. Is It Possible to Have All My Accounts Through the Same Bank Online?
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    That depends on the bank, but users need to consider that keeping their accounts separately may keep them from digging into their savings accounts so often, so they may be able to save more by having accounts at different banks. Customers who do want accounts in the same place can find advantages like easy transfer of funds between accounts. 

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