With the new years many of my friends I have spoken too have told me in addition to going to the gym they plan to save money this year because “spending got out of control last year”. Saving money is more then simply putting it aside somewhere, you should always be aware of what you are getting in return on storing your money. If you are storing it in a book at home, you arent getting much. If you are storing it in a savings account, you are earning some interest and if you store in a money market, you tend to earn a bit more interest. We are mostly all familiar with the mainstream banking offers (both national and local) in regards to savings, but many online options exist which you may want to consider.
Ally (online only)-Most importantly, Ally is an online only bank. This means you will not have the option to visit a local branch and interact with the staff in person. They do, however have fantastic online and phone support which many have reviewed as being very position. Being online only a concern of yours may be how easy it isto fun? Ally has eCheck deposit services which will allow you to deposit funds from any other existing account with ease. For mobile addicts, Ally’s app for iPhone/Android allows eCheck Deposit using your phone’s camera.
Ally Bank’s Online Savings Account are known for their high interest rate while maintaining no monthly minimum balance fees. As of todays date, this type of account is paying 0.95% APY (no minimum deposit to open and no minimum balance requirement).
In addition Ally offers auto financing, checking accounts with perks and CDs.
Personal Savings from American Express Bank-I know what you are thinking… American Express is more then just credit cards?? But this is my favorite savings account as I personally have one. Just to give you a figure, Amex Bank holds $21billion in deposits aside from their credit card business. PS from Amex is mainly online only with just a single brick and mortar locations, but offers both savings accounts and CDs of various maturities. As of today, the savings account rate from Amex Bank is 0.90%, just a tad less then Ally.
Capital One-If a more tradition bank for a savings account is your preference Capital One is a great choice. The bank is one of the largest in the country with almost 1,000 branches and over $100billion in deposits. If you remember seeing those orange color themed ING Direct commercial, Capital One recently acquired ING Direct increasing its online banking presence. Capital One is directing new savings account customer to their ING Direct subsidiary which is offering a 0.75% rate with no fees or minimums.
Of course, many more options exist and depending on where you live regional options may be plentiful. Keep in mind there are more then traditional savings accounts/money market accounts. 529 College Savings Accounts are opened by parents for young students. It allows contributions to a mutual fund that may grow (or decline) or purchase college tuition credits at the current rate, even if the student will not be a potential student at that school for a while. Keep in mind, 529 accounts may carry maintenance fees depending on your state, and though they are usually opened with parents, students can make deposits into the account as well. Certificates of Deposit (CDs) are another savings option. CDs cannot be accessed until the predetermined date arrives/passes. The duration vary by product and by bank from 6 month to multiple years. The rate of interest the money will collect is typical much higher compared to other savings accounts and a promissory note with the agreed rate is given to the owner of the account when it is opened. One warning, if you need to access your money before the date, you will incur penalties.