Advertisement
So You Saved Some Money… Now What?
-
Saving money at college is tough, but it’s definitely possible. Once you scraped together some money, where do you go from there? Luckily, there are many options available, including the beautiful thing called “Online Banking.”
Why Online Banking?
Higher interest rates. Online banks are 100% online operated, managed, and used online. These online banks are often superior in comparison to brick and mortar banks’ interest rates, due to the fact of lower fees, such as no storefronts to rent, no vaults to protect and less employees to pay.
Which Bank Is For You?With a much higher interest rate and the reliability of the insurance of FDIC, these banks are more lucrative in their abilities. Each has different benefits and uses; some are newer to the online banking field, and interest rates can vary greatly. (NOTE: These rates are current as of 11/24/08.)
Smarty Pig
Rate: 3.90%
Fees: $0
Minimum: $0
Smarty Pig is a newer online bank made for the MySpace and Facebook addicts. When creating an account, you get to choose what you’re saving for, which allows people like family, friends, rich benefactors, etc. to donate to your account and help see your progress. There are forums and various blogs that let people turning saving into a social event, creating a support system for financial stability. There are also bonuses if you choose to cash out with certain retailer gift cards, such as Best Buy and Amazon.com for up to 6% bonus value added from what was in your account. It seemed a bit much to open about personal finances for my liking, as well as being geared for purchases rather than true saving. Then again, you can always make an account for a house and just enjoy the 3.90% APY.
E*Trade
Rate: 3.30%
Fees: $0
Minimum: $0
E*Trade is one of the bigger names out in the online banking world. Predominately pushing for online trading, they also have savings accounts with a very competitive rate of 3.30% APY. If you’re planning on trying to do more with your money (investing, trading) rather than have it sit in a bank account, I highly recommend E*Trade so you can keep your accounts in one place.
Subscribe via 
Advertisement
Leave a Comment
Subscribe
Featured Video
Internships
- An error has occurred; the feed is probably down. Try again later.
.jpg)
November 30, 2008 pm30 1:44 pm
I am a firm believer in online banking, going back to when I was 16 years old. It is very simple and conveniant. I guess this article only deals with online banking because aside from this there are many other options young people have with the money they have been able to save up.
November 30, 2008 pm30 7:48 pm
Studenomics: I agree. My only problem with online banking is that it leads many students to not balance checkbooks, any I know many who spend, spend, spend, and those charges may not appear for months. They are strangely surprised to see their accounts overdrawn.