What Is The Best Online Bank Savings Account?

Online bank savings accounts are savings accounts that are managed and funded though the Internet - at least for the most part. The best accounts are safe, secure and easy to use. While online savings accounts have some disadvantages, they also have many advantages over ordinary savings accounts, 

Online vs. Offline Savings Accounts

The primary difference between online and ordinary savings accounts is the fact that, in case of the former, all transactions can be conducted over the Internet. This means that they can be conducted anywhere and any time, so long as the Internet connection is available.  Online savings accounts have higher interest rates and lower fees than ordinary savings accounts. Online accounts are also less likely to have minimum balance requirements than ordinary banks.

That said, online savings accounts do have some drawbacks. The customer service is often less reliable and less qualified. Furthermore, the accounts are vulnerable to all sorts of technical problems. Databases can malfunction, Internet connections may break down, servers can go out of order, etc. The client's computer can become infected with malware, which can record passwords, subvert security protocols and make it easier for it's creators to steal the money. The later can be especially problematic if the funds aren't stored as hard cash.

How to Find Best Online Savings Accounts

When looking from online savings accounts, customers can choose from a variety of banks, be they traditional or Internet-based. When evaluating accounts, they should consider interest rates, other fees and whether or not the accounts have minimum balance. Good savings accounts should be backed by FDIC insurance - an insurance policy that covers their value if the bank goes belly up. Finally, they should look into the bank's reputation. They can either use online customer advocacy websites or look up the bank at Better Business Bureau.