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SETTING UP AN ONLINE SAVINGS ACCOUNT

There are a number of different ways to save your money and it can be hard knowing what type of savings account to open. One of the most popular options these days are online savings accounts. Online savings accounts are also known as e-savers, internet accounts and online savers, are opened up by a particular branch but can only be accessed online. There are several benefits to setting up an online savings account, all of which should be considered when contemplating how and where to save your money.

How Internet Savings Accounts Work

Online savings accounts exist online. What this means is that you will get a certain code and password to access your account. Your online saver will most likely also be linked to another type of account, such as a checking or another savings account. When you log on to your online banking information you will be able to see the funds in your saver.

You will be able to transfer the funds to the linked accounts if you want to take the money out to pay your short term lease or monthly rent. Online savings accounts cannot be accessed through a bank teller or ATM which is one of the reasons they are so popular. After all, if you cannot access your funds through a regular ATM, you have a much better chance of actually saving your money and not spending it whenever you go out shopping or night clubbing.

Because online savers only exist online there is less need for ATMs and bank tellers. What this means is that online savers actually come with some of the highest interest rates across the board. In fact, most banks count their online savings accounts as one of the highest interest rate options out there.

Another benefit to these accounts is that there are not many rules in place. In most instances all you need to open an account is some ID and another type of account already in place. You don't have to have a certain amount of money; you don't have to add a certain amount per month; you don't have to be a certain age. In general, you can add $1 or $1000 per month and still make a little extra through interest.

Securing Your Investment Online

Of course, all investments come with some risk. You will not risk losing your money if the market crashes as the interest you are making is based on your deposit only; however, because your money exists online, there is always the chance of computer theft. Most banks will have some sort of security screen in place where you need to choose a password and secret questions to answer. However, it is still possible for hackers to get access to your funds.

One way to avoid this happening is to only log on to your funds through a secured network. Furthermore, take the time to choose passwords that are hard to know and change them every month. Finally, make sure you talk to your bank about what measures are in place if you are a victim of identity theft. Do they offer compensation for these instances?

Setting up an online savings account takes two seconds. All you need to do is contact your current bank or your new bank and speak to an agent about your needs. It is a good idea to talk to a number of banks and see which one offers the highest interest rates before agreeing to putting your money in the account. That way you can be sure you are making the most out of your money while investing through the net.

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