Best Online Savings Account
Most of us can get by with only credit to meet our daily expenses.
Whether it is gas money for your car, phone bills, or financing a new home, we deal with it through credit. And that’s good,
because no one can really expect a person to have all that cash on hand to purchase a house. Credit makes it easy and convenient to do business or make purchases.
However, while using credit has its benefits, there is some money you just don’t want to take a chance with at all.
Maybe you just want to keep a portion of your income for rainy days. Or maybe you want to save for your child’s college tuition.
Whatever might be your reason, the fact of the matter is that you should save money and not risk them all on investments.
Until recently, savings accounts in banks were earning an interest of 1% per annum. For those who just want to stash their money somewhere safe, this hardly matters.
At least, it’s earning in interest from the bank, better than stashing it away and letting it gather dust under the mattress.
However, since mid-2004, the Federal Reserve experienced a marathon of interest rate hikes, after which short-term rates went up to 4.5%. Suddenly, having a savings account doesn’t seem like a bad idea at all.
Riding on the coattails of interest rate hikes, many virtual banks are now offering online savings accounts for consumers.
But to get the best online savings account out there, you need to take an active part in looking.
After all, banks would hardly inform you that you could earn more in interest from your best online savings account.
They are perfectly content letting your savings account stagnate in a non-interest bearing checking account.
Opening the best online savings account, one that offers you up to 4% in interest, is a cut above the rest of the savings accounts at 1.5% up on offer. 4 percent means you could double – even triple – your savings risk-free.
In offline banks, the highest yields are often reserved for clients who have 5-figure sums in their account.
But if you are only starting to save and do not have too much to begin with, you do not have to settle for anemic rates in order to get the highest returns.
Online banks can give you the best online savings accounts with high interest rates and relatively low balance to maintain.
To keep the rates on the best online savings accounts high, these banks usually limit the ease and the speed with which you can withdraw funds from your account.
This means that there is no check-writing and no ATM either. In order to get your funds, you need to transfer it to a checking account.
Best Savings Account Rate – High Yield Savings Accounts
The first thing that a person needs to know about his banking activity is the savings account interest rate he is entitled to.
Of course you already know about this if you have already set up a savings account. What you need to know then is its limitless potential for earning.
Your bank account could just be among the privileged few posing as high yield savings accounts at liberty for the very best savings account rate.
The best savings account rate is not open for all savings accounts. It is that different from any other ordinary bank accounts.
High yield savings accounts are earned, before your bank treats you as a VIP, and not all people are up to this – the obligation.
Naturally, if you want to grasp the best savings account rate, then you must also be competitive yourself when it comes to financing your bank account.
To qualify for the best savings account rate, you must make a sufficiently large initial deposit to start with.
A large amount of principal also means big interest for daily or monthly compounding. Next thing you could do is to maintain that high balance in your account always.
This should give you a much regular and stable interest earning while avoiding any maintenance fees.
One way to maintain a high balance in your savings account is to limit transactions in and out of your bank account, which shall save you from paying other fees and service charges.
You probably know by now that the smallest possible deposit or withdrawal has a corresponding service charge. You should avoid this as much as possible,
because otherwise, the interest you’ll earn will just instantly go out expended. However if your account balance is fluctuating and you need to make a deposit to keep up a high level in your account, then don’t deposit.
Instead, have other accounts deposit into your bank account, which is why you should maintain other banking relationships.
One easy way to do this is to have your employer deposit your salary directly to your bank account. This also applies to other payment transactions.
The high yield savings account rule is to have more coming in to your savings account than out of it, and eventually, you’ll also have more interest coming in.
If you do all of the above, then you’re on your way to having the best savings account rate that your bank offers.
You’ll enjoy a higher APY (Annual Percentage Yield), plus, you’ll be a highly valued customer for your bank.
Medical Savings Account
A medical savings account is a way for you to save for future medical expenses without the burden of federal tax.
Similar to having an IRA, your medical savings account is sheltered from federal tax deductions, only that the money must be spent on qualified medical expenses.
In a way, opening a medical savings account is better than purchasing health insurance coverage.
For instance, instead of purchasing an insurance plan with a high price tag and low co-pay, you can simply buy a low-cost policy with a high deductible.
The low-cost policy will pay for any “big” bills you have while the difference can be saved on your medical savings account to be applied to the “small” bills.
The great thing about depositing money in a medical savings account is that the amount is totally 100% tax deductible.
What’s more, you can easily access your medical savings account by writing a check or by using your debit card in order to pay for medical bills.
Plus, the payment for the medical bills is tax-free, and may be made even for services that are not traditionally covered under insurance, such as dental or vision care.
What You Don’t Use, You Keep
Having a medical savings account is like having your own bank savings account. What money you do not use for payment of medical bills,
you can use for other purposes, such as coverage for future bills or for supplemental retirement.
As you continue to make contributions on your medical savings account, the money grows on a tax-favored basis.
How to Establish a Medical Savings Account Plan
Under the Medicare bill, signed into law by President Bush on December 8, 2003, you can establish a medical savings account by signing up for an HSA plan or Health Savings Account plan.
Here is a three-step way to establishing an HSA medical savings account plan:
* STEP 1: Purchase a “high deductible” health insurance policy. Make sure that it meets the specific HSA requirements in order to qualify.
* STEP 2: After your “high deductible” policy is issued and in force, the next step is to establish the actual HSA medical savings account.
As to where you should open the account, do it at a qualified financial institution. Different financial institutions offer different investment options. You can choose between fixed accounts, mutual funds, stocks, or bonds.
* STEP 3: Start making contributions to your medical savings account. You can pay any amount to your account since there is no minimum contribution required. There is, however, an annual maximum limit, just like an IRA.
REMEMBER: In a medical savings account, what you don’t use, you can keep. Just like an IRA, your balance continues to grow while retaining its tax-deductibility status.
And just like an IRA, once you reach the age of 65, you can use the account as you would a traditional IRA and subject only to income tax reporting.
Savings Account No Fax Payday Loan
In the field of payday loans, there is now what they call as “savings account no fax payday loan”.
Well, all payday loan companies as well as long term payday loan customers are no doubt familiar with this term since in their field,
the savings account no fax payday loan is highly considered as a notable credit service the payday loan industry ever defined.
Understanding savings account no fax payday loans is as easy as understanding payday loans in general.
The savings account no fax payday loan is actually a form of internet credit service that basically makes connection between the payday loan customer and the payday loan provider.
In more specific terms, the savings account no fax payday loan specifically connects you as a payday loan customer with the not too tough
payday loan providers that generally exert much energy and effort on providing payday loans directly to the people in your respective area.
For that matter, it now seems that savings account no fax payday loan provider is a lender of payday loans which
highly believed and aimed at providing the fastest and most munificent savings account no fax payday loan possible.
It is also interesting to know that in some instances, the savings account no fax payday loan providers particularly aimed to do away with the payday loan hassles,
particularly faxing and credit checks, so to secure the customer’s personal information or even to hold the payday loan application free from whatever interferences possible.
Having that nature of making connection between the customer and the provider, many people have highly considered savings account no fax payday loan as a mediator.
In fact, a number of payday loans customers have claimed that a savings account no fax payday loan particularly serves and acts as a mediator between the payday loan customer and the payday loan provider.
In what sense? It is in the sense that a savings account no fax payday loan believes in associating customers with the best
savings account no fax payday loans providers of essentially pay check advances along with the payday advances on the net.
And, being considered as a mediator, it should therefore follow that the savings account no fax payday loan would specifically
connect with the most secure, most trusted and most reliable providers of payday advances as well as paycheck advances.
Today, the savings account no fax payday loan is becoming much available on the web with several companies out there on the web offering this credit service.
In fact, most of the savings account no fax payday loans along with some other related credit services are offered and administered
by certain payday loan companies with the main intention of providing the people the most possible advantages they can take from savings account no fax payday loans.
This service can now be applied through those online applications provided by certain savings account no fax payday loan providers on the net.
But, just like the typical payday loans, you also need to have a bank statement and a regular employment for you to avail a particular savings account no fax payday loan.
Savings Account Interest Rates Everything You Need To Know
If you are concerned about your future and you have the ready cash to spare, it is always a wise decision to put your money in a savings account.
As the bank market gets competitive day by day, you will benefit with the best savings account interest rates.
Opening a savings account may appear to be easy and simple, but if you want to earn more for your money,
it is crucial to make a prudent choice and select the best savings account interest rates.
Higher yielding savings account interest rates are the immediate choice of many who wish to earn higher interest for their money.
But there maybe trade-offs as well. High interest yielding accounts will require a higher dollar initial deposit and you to maintain a higher minimum balance.
Your number of transactions per day may also be limited as compared to other types of savings account or they may ask you to attach the account to a current account.
Therefore, it is crucial to understand the fine print of an account, as you don’t want to earn higher interest, but then lose it to high penalities and fees.
Moreoften than not, online banks have the ability to offer attractive and higher savings account interest rates.
This is because they get to spend less in overhead cost as compared to conventional banks. What they are able to save in overhead cost they can now pass on to their customers as higher savings account interest rates.
Conventional banks are now entering the arena and are starting to offer online savings products to compete with the interest rates.
So if you want to earn more interest or get the best savings account rates, then you will do your homework and compare several savings accounts to get the best deal.
Due to the strong competition now in the banking industry, savings account interest rates are getting to be more attractive.
Financial institutions have been coming out with special features to beef up their savings portfolio and increase interest rates such as:
a lower minimum balance or even no minimum balance, free internet banking that will allow a depositor to view his transactions, easy access to his account, direct deposit, checking/current account that is tied up with the savings account among many other innovative features.
You can get the best savings account interest rates by doing the following:
(1) compare the savings offering of as many banks as possible. You can always do this online without having to leave your home and check for their best interest rates;
(2) carefully read their terms and conditions and understand the fine prints, i.e. higher interest rates with minimal or no fees/charges; and
(3) read the reviews online that will help you to have peace of mind knowing that whatever bank that you choose to invest your money is an institution that you can trust all the way.
When you know that you can trust the financial institution or the bank that you will do banking with, then you will always be able to enjoy from the best savings account interest rates.
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