Although brick-and-mortar banks are competitive, you can often find more attractive interest rates in online savings accounts. Making the leap from traditional banking comes with some risk, so you should be careful when choosing your bank.
The Jenny Pincher offer these criteria to look for when going bank-hunting online:
* Tough security. See what the bank’s website has to say about its security in promotional materials, and if you don’t like what you see when signing up for an account, consider backing out. Once you’ve signed up, don’t click on emails that lead to links that ask you for your login and password.
* Low minimum balance requirements. A high interest rate may only be the bait to get you to tie an unreasonable amount of your money up. Before you commit, make sure you’ll be able to do without whatever minimum balance is required.
* Positive reputation. Ask around on social networks and do web searches to get a gauge of your bank’s image. If a bank seems unstable or is known for ignoring customers, steer clear.
Criteria for Choosing an Online Savings Account [The Jenny Pincher]