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How to Compare Online Savings Accounts

Online savings accounts are more common than ever before. With so many benefits — especially when compared to local financial institutions — you may also find yourself heading down this path in the near future. 

However, with so many options to choose from, making a final selection is easier said than done. And for that reason, you must know how to compare online savings accounts.

Before we get into the finer details, remember this: the account that’s best for you may not meet the needs of the next person, and vice versa. Make your final decision based on your personal circumstances and financial goals.

With that in mind, let’s examine some of the more specific ways to compare online savings accounts.

1. Reputation 

Above all else, make sure you choose an online bank with a good reputation. There’s never a good time to take a risk with your money. If a bank doesn’t have a good reputation and you find one negative review after the next, take your money elsewhere. 

2. APY

One of the primary benefits of an online savings account is a higher APY than what’s offered by more traditional banks. With this, you earn more interest on the money you save. And as you know, there’s nothing better than free money.  

3. Bonus offer

Not all online savings accounts have a bonus offer, but you should take a strong look at those that do. If everything else is equal, it makes good sense to open an account with the bank that will give you the best bonus.

The most common bonus is a cash bonus for opening an account with a minimum deposit. For instance, a $200 bonus if you open an account with $1,000 or more. 

4. Customer service

It’s easy to focus so much on the details above that you overlook the importance of a high-quality customer service experience. 

Test out three to five banks that you’re strongly considering. Send them an email. Use their live chat feature. Make a phone call. If you like the service you receive when you’re not a customer, you’re likely to enjoy it if you become a customer. And of course, this also works the other way.

Final thoughts

If you do nothing else, consider these four details as you compare online savings accounts. This will help you narrow your options and make a choice you’ll be confident in over the long run.

Do you have an online savings account? How did you choose it? Would you add anything to the guidance above? 


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