Personal Financial Tips

Archive for the ‘Online Savings Account’ Category

It’s all too easy to live from paycheck to paycheck without any money left over. However, you should never leave yourself without money for larger purchases or unexpected costs. It’s important to budget each month and allow yourself to save some money away each month regardless of how much you bring home as income. You can make your savings grow much faster over time by placing your money into a high interest savings account.

A high interest savings account generally yields an interest rate greater than 2.5%. Most of the high interest products offering the most competitive interest rates and online savings accounts such as HSBC and ING Direct.

Why Interest Matters

Larger capital growth occurs with a high interest savings account because you will receive interest on the principle amount of money that you put away into a savings account. The principle, combined with the interest that you earn on that principle, continues to build on itself – with little-to-no maintenance on your part.

For example, if you put away $10,000 into a high interest savings account, such as an online savings account, with an annual interest rate of 4.0%, you will have accrued $400 by the end of the year without having to lift a finger. At the end of year two you would have earned over $800 just by keeping your money in the high interest account.

The passive income that you receive from your high interest account can help you achieve financial security and build your nest egg … without requiring you to work overtime or take a second job.

Rate of Inflation While earning passive income from your savings seems like a strategic way to, basically, earn money for doing nothing, keep in mind that there is a national rate of inflation, which is usually about 3% per year.

The rate of inflation is based upon the average increase in prices which therefore causes the real value of the dollar to fall. Therefore, if your money is tied into a high interest account that returns 4% interest a year, you have to subtract this rate of inflation in order to understand exactly how much your money is actually growing.

Types of High Interest Accounts

There are two popular types of high interest accounts that you may want to consider: money market accounts and CDs.

A money market account is directly linked to the Stock Market and is not guaranteed. As the market falls, so can your interest rate. However, because it is tied to the Stock Market, you can also lose your principle when you invest it into a money market. Currently PayPal is offering one of the highest interest and easy access money market accounts online. A certificate of deposit (or CD for short) is a very stable high interest account with a fixed term and return. It is often available through online savings banks such as ING. When you put your money into a CDD you have to decide an initial period of time for the investment such as twelve months. During the agreed period your funds will grow according to the interest rate agreed. However, there may be penalties if you wish to remove your money before the period of time has expired.

Before investing in a high interest account, be sure to do your own research into the legitimacy of the account by reviewing claims filed with the Better Business Bureau and performing a simple online review search. Once you’re comfortable with your selection of accounts, start putting that money away to watch it grow!

A cash advance or payday loan is a loan that is written out on a short term basis for borrowers who cannot or do not wish to borrow money in a traditional format. A payday loan is payable when the borrower gets their next paycheck. Traditionally, only those borrowers who had an active checking account could apply for and be approved for a payday loan – but that is no longer the case.

Fortunately, for many borrowers who do not qualify to open a checking account due to bad credit or other reasons, there are payday loan servicers who will approve their payday loans regardless. This is wonderful news for those who have difficulty borrowing money, usually because of past credit mistakes that were made when they were younger and less responsible, or that were made because of a job loss or layoff.

Only A Savings Account Needed To Qualify

To qualify for your payday loan without a checking account, you will need to open a savings account and provide the savings account routing number to the payday loan servicer in lieu of a checking account. Opening a savings account is much easier than opening a checking account – there are no credit checks to do so with most banks. And opening a savings account requires very little cash up front.

In fact, most savings accounts can be opened with less than $50. The reason that these lenders offer a payday loan for those without a checking account but require that they have a savings account is to expedite the release of your loan proceeds, and also so that they can be paid by electronic funds transfer from your savings account when your payday loan comes due. In addition to having a savings account, you must also meet the other requirement of receiving a payday loan – income. Your income (whether from wages, Social Security, retirement, etc.) must be sufficient enough to pay the lender when the loan becomes due.

No Credit Check, No Checking Account Loans

Because there is no credit check involved in getting this type of loan, nearly all borrowers who qualify will be approved. You may be asked to send in various forms of documentation to support your application. Some of the documentation that may be asked for in order to approve your no credit check/no checking account loan include: proof of income (in the form of a pay stub or statement from your employer, or proof of income from your Social Security or retirement), picture identification (in the form of a state issued driver license or other identification card), and your banking information. Some lenders will also ask you to list several references (usually three). Your references can be anyone that can contact you to leave a message if the lender tries to reach you and cannot.

Online Application Is Fast And Easy

Applying for your no checking account needed payday loan is fast and easy when you use an online lender. Online applications are submitted via an encrypted server that protects your information but allows you to submit your application in the most expedient manner. Because of the streamlined process of application, many borrowers can receive their loan money in just a couple of hours, deposited directly into their savings account for immediate access.

The fast speed of processing is what makes an online savings account payday loan so popular today! People use this efficient facility when they need the money urgently. And traditional financial lending procedures generally take weeks, sometimes months, before the loan is finally sanctioned and you receive the check!

But with a faxless payday loan for savings account, everything is done instantly on the internet! From the application for borrowing the money to the verification of the details provided, and eventually loan approval. Even the money is finally transferred to your bank account through the direct internet banking! So you actually have the amount to use, in whatever way you wish to, within 24 hours of applying for it!

How To Qualify For An Online Savings Account Cash Payday Loan?

The approval criteria for a savings account payday loan are very simple. If you meet the following requirements, you can easily get instant cash advance against your next paycheck, to take care of those unforeseen emergencies.

1. You must be a citizen of the United States.

2. You must be an adult, meaning you should be at least 18 years old.

3. You should have a monthly income of at least $1000 from a regular job. This fact actually determines the maximum amount of money that you can borrow.

4. And lastly, you should have an active savings bank account that they can verify against you.

The Cost Of The Loan

Typically, a payday loan with savings bank account only costs 15-30 dollars per hundred dollars of sum borrowed for two weeks. You can, however, take advantage of the high competition in the industry, and get a lower deal. But in such cases, you must also make yourself aware of all other charges and fees, called by other technical names by the loan providers. For if you are not careful, you may find yourself paying all kinds of “undisclosed” charges later on!

How To Select A Lending Company?

There is a plethora of companies offering an online savings account payday cash loan today! While it does give us the choice of searching for a low deal package, it also increases the risk of scammers and frauds! Beware of lending websites that don’t begin with an “https” instead of the usual “http”. The “s” indicates that your financial data is going through encrypted security systems.

Also avoid taking an online savings account payday loan from an institution that has any pending complaints against it in the local BBB, or if you find unsatisfactory testimonials from the past clients of a company.

With the current interest rates being paid by traditional brick and mortar banks being so low, it seems that for convenience sakes you could just stuff your money under the mattress. You could forgo the .46% your bank was paying on your saving account and not have to deal with long lines, rude tellers, finding parking space and banker’s hours. What if I told you that you could still avoid the hassle of traditional banking and earn 5% or more on your basic savings account? Interested?

There are many online-based banks that are paying well over the current interest rates being paid by traditional banks. Many of these Internet based banks are paying over 4% and a handful are paying over 5% on basic savings. You don’t trust online banks? You may not know that many of the Internet based banks are the cyberspace-twins of traditional banks. Yes, some of the banks are pure Internet only plays, but most of them have been established by the brick and mortar banks to compete with the online banks. Not wanting to be left behind, these brick & mortar Internet twins are offering some of the highest rates on basic savings — most over 4% and quite a few over 5%.

The onslaught of traditional banks jumping to the Internet has revolutionized the online banking industry. The online banking industry is becoming very competitive with many of these banks are offering introductory bump rates that are higher than normal for a short period of time or offering to add extra money to your deposits to entice you to open an account with them. Many people have shunned the online banking concept out of fear of transferring their hard earned money into some cyberspace black hole never to be seen again. But with FDIC insured and well-known traditional banks such as Citibank, Countrywide and many others offering their services through their online businesses, online banks look to be a very viable option for a high rate of return on your savings account.

You can Make More Money

High yield online savings accounts have higher interest rates which means you can make more money. Isn’t that what you always want to do? If you could make more money simply by making a decision that won’t change your life otherwise, you might as well take it. The higher your interest rate is and the more money you have in the account, the more money you’ll make. Hopefully, having this account will also encourage you to save more money because you know that the more you save the more you’ll make.

You don’t have to Drive to the Bank

Let’s face it, making errands to the bank isn’t exactly fun. It requires more driving, more time, and more of your energy. To top it all off, many banks aren’t even open when you need them. Rarely are they open late or on weekends. Traditional banks are a huge inconvenience.

With an online bank, you don’t have to drive anywhere. You can access your bank account, make deposits and withdrawals, and do everything else in the comfort of your own home. There is no driving, time wasting, and dealing with cranky tellers. Also, you don’t have to worry about the bank being open when you need them. The internet is always open. You can login in at 12 in the afternoon or 12 midnight. The convenience alone is worth it.

It’s still FDIC Insured

Make sure that when you are choosing a high yield online savings account that it is still FDIC insured. That means that up to a certain dollar amount you are insured. If the bank goes under, the government will reimburse you. This is very important and should not be overlooked.

You get what you Want all in One Place

A high yield online savings account gives you everything you want and need. It provides everything necessary. You get a high rate, fast service, access when you need it, the easiest location, and if you choose the right bank, no problems.

Many banks offer attractive schemes to draw customers to them. Some of them are as follows:

1. High interest savings accounts. These accounts are those that offer investors a higher than average interest on their money. However, these accounts might have several restrictions too. So be aware of them before opening up this type of account. However, many find that the factor of interest is in itself an appealing factor to open up an account.

2. Tracking of account and money management is made easy with the detailed statements that banks send their patrons at the end of the month. These show complete information about deposits and withdrawals, and in some cases, even provide details of any special services on the account.

3. The fund transfer option makes account maintenance easy. Using this feature, you will be able to send and receive funds without any hassles.

4. These accounts can be linked to checking accounts in order to prevent overdrafts. This reduces the chances of your cheques being bounced due to insufficient funds in your account. There are some banks that levy a onetime fee on this service. So ensure that you get all details before signing up.

5. The feature of online access to your account is excellent in that you would be able to keep track of all transactions as well as get information on products and services for which you might be eligible.

The biggest selling point, as mentioned before, is the interest, which is not available on checking accounts. Therefore, it is ideal to open up a savings account so that you can earn money instead of keeping your money idle.