Can I Open A Savings Account Online?

Q:

Can I open a savings account online?

A:

You no longer have to go into a bank branch and wait for a representative to open a savings account. The emergence of online banking has made it super simple to open a savings account from the comfort of your home. There are plenty of online banking options available that will likely suit your needs.

Things To Considered Before Opening An Online Savings

Here are a few things you might considered before opening a savings account online:

  • Branch Locations – Is having a bank branch or ATM located near your home important to you? If so, you should focus on opening a savings account at one of these locations. Check with your local banks to see which ones offer the option to open a savings account online.
  • Interest Rate – One of the benefits of putting your money into a savings account is that it gains interest in most accounts. The interest is usually minimal but at least you are getting paid while someone else takes care of your money. You may want to hunt around for the bank with the best interest rate so that your money grows a bit faster.
  • Account Requirements – Some banks require certain criteria to open and maintain an account. For example, a savings account may have a minimum opening deposit to establish the account and then a minimum required daily balance to maintain the account. You should review the account requirements before opening a savings account online.
  • Fees – We probably all know someone who has been hit with some kind of bank fee. They can be a big pain and are not always cheap. A few common fees are overdraft fees, ATM fees, and inactivity fees. It is smart to consider the potential bank fees before opening an account.
  • Bonuses – Some banks provide bonuses for opening an account with their bank. For example, a bank may offer $200 to open an account or an introductory higher interest rate. Be sure to read the fine print to see what it actually takes to obtain the bonus. Do not assume that just because you open the account that you automatically or immediately receive the bonus.
  • Safety – Make sure you do your due diligence before opening a savings account online. Look for FDIC-insured banks with reputable backgrounds. You should obviously think twice about opening an account overseas that is offering 10% interest and a $700 account opening bonus. If it does not make sense or sounds too good to be true, you should likely avoid opening an account with that bank.
  • Access – The ability to quickly access your money may be important to you. If so, you may want to look into how easy it is to withdrawal funds from an ATM or teller. Additionally, you may want to determine how well your bank handles transfers in and out of the account.
  • Banking Product Availability – Sometimes a person may need more than just access to a savings account. They may want a checking account, investment account, CDs, and possibly more, all at the same bank. If this applies to you, it may take some time to narrow down the best bank for multiple areas of savings.

 

Banks That Offer Online Savings

Below is a list of banks that offer savings accounts that can be opened online. These are just a few options of some the most popular banks. Obviously, you are not limited to these banks but it should provide you with a decent selection of banks to review to potentially open an account.