Important Information About Online Savings Accounts

In a world where technology and the Internet plays a major role, having an internet savings account is a necessity. Almost every major bank in the world already offers this option to their clients.

Unlike traditional savings accounts which issue passbooks and atm cards, online savings accounts will allow you to check your balance, conduct transactions and transfer money without traveling to the bank. Most online accounts enable their holders to purchase online at little or no fee, and they also have an online bill payment service for several qualified vendors. Perhaps the best feature of an online savings account is that they usually have no maintaining balance, offer higher interest rates and lower taxes.

Online savings accounts are typically offered to clients who make money online. Also, most banks allow their old clients to enroll for an online account thereby enabling them to keep tab with their finances with lesser hassle.

Aside from balances, online savings accounts also provide holders with online statements and transaction records for certain periods of time. Clients can also download and print these transactions, as well as request a mailed statement.

Managing your finances is so much easier with an online account. Account holders can transfer money instantly or at a future date with just a click of a button. Then can make schedule payments so they won’t have to worry about missed due dates. The best thing about online savings accounts is that they come with debit cards; hence, account owners can now go shopping without handling cash.

Of course, one of the biggest considerations in choosing a financial institution offering online savings account is the security they offer. As the Internet becomes an even more powerful mover in modern society, cybercrime is becoming ever more prominent. Hence, you need to ensure that the financial institution you are signing up with has reliable methods in securing your account and personal information. Some of the most effective security tools being used in online banking today include:

1. Card readers which generate unique codes every time the debit card is used online.
2. Special software which ensures that no part of the bank’s website has been hacked. It works along side an anti-virus and firewall so that all transmissions made online, especially those containing your personal information are protected.
3. Login security: Most banks will require you to enter a random section of your customer number, social security number and a given password. This way, fraudster will not be able to record responses, or will have incomplete information making it more difficult to gain unauthorized access of your account.
4. Fraud detection systems: If your account is registering unusual behavior, i.e.  higher than average transactions, or spending in countries with records of fraud, your bank will contact you for confirmation.
5. Auto logoff: Most online accounts will automatically log off your account after a few minutes of inactivity. If you have used a public computer, then you don’t have to worry about unauthorized access.
6. Extended validation certificates: Important sections of the webpage have added encryption. These are typically denoted an https:// in the address field.

Anybody who is aged 16 and above can sign up for an online savings account through a financial institution’s website. The account setup usually takes only a couple of minutes but you’ll have to wait for your debit card before your account is activated. Most banks require the activation of the debit card online and will also ask for a login name and password for added protection. Money transfers to other bank accounts are also regulated by a separate transaction password.