Niagara Gazette

Web Extra

July 29, 2013

Online banks may help you boost your savings plan

(Continued)

“When you choose an online savings account your money, no matter how much you put in there, will go farther if it pays a higher interest rate,” Polishchuk said. “And, it doesn't charge a fee.”

More valuable than interest

The absence of fees may be more important than the amount of interest you earn on your savings. A $10 fee here and a $20 fee there quickly wipes out any earnings and actually eats into your savings.

Online banks typically make it easier to get started with a savings plan. While some traditional banks require you to open an account with a specific minimum amount, online banks usually have no minimum deposit requirement.

Here are some online banks and what they offer in the way of savings products:

Ally Bank: Formerly GMAC Financial, Ally's savings account has no minimum deposit to open and no monthly maintenance fees. It currently is paying 0.84 percent APY.

Capital One 360: This online bank, part of ING Direct, advertises “no fees, no minimum” for its savings accounts. It currently pays 0.75 percent APY.

American Express: The credit card company's online bank features a savings account with “no monthly fees, no minimum balance.” It currently pays a competitive 0.85 percent APY.

USAA Bank: The insurance giant's online bank has a savings account with “no monthly service fees, regardless of your balance.” It also features tiered rates, paying higher interest on larger balances. Current savings account rates range from 0.10 percent to 0.20 percent APY.

EVantage Bank: Perhaps the best online savings account isn't even a savings account. EVantage Bank's Rewards Checking is a free checking account that currently pays 2.0 percent APY on balances up to $10,000. All you are required to do is post and clear 10 Evantage Bank Visa CheckCard sales transactions per cycle and receive all statements electronically. As a bonus, out-of-network ATM fees are refunded, up to $25 per cycle.

Story provided by ConsumerAffairs.

Text Only | Photo Reprints
Web Extra
Featured Ads
House Ads
AP Video
Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN Raw: Deadly Landslide Hits Indian Village Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways Raw: Thousands Flocking to German Crop Circle At Least 20 Chikungunya Cases in New Jersey Raw: Obama Eats Ribs in Kansas City In Virginia, the Rise of a New Space Coast Raw: Otters Enjoy Water Slides at Japan Zoo NCAA Settles Head-injury Suit, Will Change Rules Raw: Amphibious Landing Practice in Hawaii Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA
Opinion
House Ads
Night & Day
Twitter News
Follow us on twitter
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Front page