Your individual savings accounts Information
Online savings accounts have only recently come on the scene, but astute consumers and savers have discovered the many benefits to saving online. Your bank is never closed, interest rates are typically higher, and fees are low or non-existent.
With an online or e-account, the banks do not have to maintain traditional brick-and-mortar stores. Some offer online savings accounts as an option to their other accounts; others focus on these accounts but still have a few in-person locations, other are strictly online. Your comfort level with online transactions, and online banking in particular, will make a difference as to which of these options is best for you.
Most offer high interest savings accounts, which consumers can use for everything from monthly expenses to savings for a large purchase. People often stash money in these accounts for an “emergency fund” that they can draw on if needed.
Online savings accounts can be perfect for this use. First, they rarely have any fees associated with them. Second, they’re usually “linked” to a savings or checking account you have locally. When you need money, you just log on and have the funds electronically transferred. They generally show up within two business days in your local account, where you can use them as needed. The money is transferred as cash, with no waiting period once it arrives in your local account.
However, that approximately two-day wait period also helps people avoid “raiding” the account for every passing fancy. Let’s say you see that perfect tool/pair of shoes/television/object d’art in a store. You want it, and you want it now. However, the price tag is a little out of reach. You vow you’ll transfer the money and then hustle back to the store when it arrives and buy what you need.
But once you get home, you realize that the tool/pair of shoes/television/ object d’art is more of a want than a need, or the color isn’t right, or sanity just plain settles over you. You don’t transfer the money, and you discover you’re still happy. Hey! How about that?
Just as with the in-person banks, you’ll need to compare products and services, and evaluate which one is best for you. Don’t forget to consider customer service—every online bank has a customer service department, and the day could come when you need to talk to them. You can compare other customers’ experiences by typing the name of the bank and the word “opinion” (without the quote marks”) into any search engine. Then go to the website and see how easy it is to navigate. Can you find what you need quickly? What are their security procedures?
Once you choose a high interest savings account, be sure to protect your money. Change your password on a regular basis, make it one that’s not easy to guess, and never write it down. Your statements will likely be online, but make sure you log on each month and review them. Notify customer service immediately if you have any concerns.
Online savings accounts can offer the high interest savings you’re looking for, along with low or no fees, and great customer service and security. A little research is all it takes to find the best account for you.
http://www.high-interest-saving-account.com.au
Article author: highinterest savingaccount
Money deposited in a savings account is only intended to stay in the bank for a relatively shorter time span. This account usually offers much lower interest rates than most bank accounts. But still, like many other accounts, it accumulates interests. The rate of which is largely dependent on the conditions provided by the bank.
Savings accounts are normally maintained by commercial banks, credit unions, loans and savings associations, and some mutual savings bank that are offering interests that can never be used as money. However, the account may be utilized by writing a check.
These accounts allow customers to use parts of their liquid assets, which may be used for any transactions. But before a savings account is used, the balances in the savings account must first be transferred to checkable deposits or transaction deposits or currency. But due to the simplicity of transferring the saving accounts, they are often termed as "money".
Though the use of checks is often not allowed, withdrawals are still easier when done using the savings accounts. The Money Market Deposit Account or the MMDAs on the other hand may restrict you on a limited number of transference of accounts and withdrawals.
With the advent of the Internet comes the development of a new system of banking- the direct-to-consumer banking system. This particularly addresses online savings accounts. Direct-to-consumer system allows direct access to savings accounts from the traditional bank online where money naturally transfers by means of electronic bank transfer. There are two types of banking institutions that create and allow this form of transaction- online-only banks and the traditional banks.
Online-only banking is the answer of the entrepreneurs to the growing consensus of the general public of who usually make banking transactions through the internet. These banks tried to accomplish what real banks have done. They offered almost the same spectrum of products that traditional banks have but offered them on consumer-friendly deals- high interest rates and low fees.
Online savings accounts often offer significantly higher rates of interest as compared to the contemporary savings account. This deal may be attributed to the fact that lesser expenses during online processing and that online market is naturally rate-sensitive.
Sadly, the majority of the consumers are not yet prepared to this new treatment in banking. This in effect, brought down most of such banks.
But by the end of year 2000, ING launched an optimized form of online-only banking. This was rather successful and brought great increase in the online banking industry. They created a much simpler savings account transaction that pays higher rates than the traditional banking. But this does not permit the use of ATM cards, checks, and other services. It was only intended as an account for which your money may be safely guarded.
For almost three years, ING had no other rivals in this system of banking. But recently, many other banking institutions have followed suit. Some were the pioneers of the online-only banking who eventually died down during the course yet returned to beat the market share ING has. Some of these banks offer the same services with that of the ING programs. Most have the same principle of high interest rates and no unnecessary frills.
One notable new entrant is the VirtualBank. This targeted the high-end techy society yet they offer much lower rates as compared to the ING Bank. Thus they gained some consumers.
Eventually, the industry expanded sometime in 2003 until 2004. And by the year 2005, savings account virtually revolutionized banking by means of online-only banking.
Robert Thatcher is a freelance publisher based in Cupertino, California. He publishes articles and reports in various ezines and provides savings accounts resources on http://www.your-saving-account.info.
Article Source:
ezinearticles.comHealth Savings Accounts – HSA’s – The Who, What, Where, When and Why on HSA’s.
What is an HSA?
Health Savings Accounts - HSA's are accounts owned by the individual that allow money to be deposited into a tax-deferred account to pay for current and future medical expenses. They are similar to an MSA-Medical Savings Account, which was the predecessor of the HSA. This money can be deposited by you and/or your employer. You can think of it as an IRA/Flex account combination. An HSA must be tied to a high-deductible health insurance plan (HDHP) which is designed to fit the requirements of an HSA. There are limitations on the amount that can be contributed each year.
Who will it benefit?
HSA's can be beneficial to individuals, small businesses or any size business that is interested in pursuing a high deductible insurance and lowering their healthcare costs. This can be extremely beneficial if you only use your insurance for accidents or unexpected medical circumstances. It is also beneficial if you are looking for lower rates on your insurance premiums but would like to have an account available where you can accumulate funds to use for your medical expenses while meeting your deductible and co-insurance. It can also be used for expenses not covered by the insurance. There is no deadline on withdrawal of the funds and they can be withdrawn for other than medical expenses penalty free after an individual is eligible for Medicare.
When will they be available?
They are available now. They are hard to find. Most companies that I contacted such as Bank of America and ADP were not familiar with Health Savings Accounts or did not offer this as of yet. They may be offering these accounts in the future. Not all agents are interested in selling the product since the high-deductible insurance premiums do not provide for a high-profit margin. However, I did find several insurance companies that offer these insurance plans. Fortis Insurance was instrumental in getting the HSA legislation passed. Fortis invested a tremendous amount into the HSA program and feels that this product is the wave of the future. Also, World Insurance, IAC, and American Medical Security have designed high deductible plans. All these companies feel that HSA's are going to be in great demand from the public. Blue Cross/Blue Shield is planning on having a plan available in January 2005. After doing some internet surfing I found an expert on HSA's at http://www.americanhealthvalue.com/ that provided a wealth of information about HSA's and even has links to insurance companies that offer the high-deductible medical insurance by state.
Why have an HSA?
Small Businesses - It allows a company to provide insurance without having to pay high premiums. The employer can also contribute to the account of the individual for the difference in the lower premium. There are certain limitations on employer contributions, but they are done completely tax free to the employee and tax deductible to the business.
Individuals - Contributions to the HSA are an above-the-line deduction on the 1040 with certain limitations. Individuals 55 and older can make "catch up" contributions - $500 in 2004. Deductions from the account for qualified medical expenses are tax free and include over-the-counter medications and apply to the person covered, their spouse and dependents even if the spouse or dependent are not covered by the insurance plan. HSA's can be used to pay for COBRA continuation coverage, health plan coverage while on unemployment, qualified long-term care insurance and some expenses for individuals enrolled in Medicare. HSA's provide a vehicle to allow savings for future medical expenses and while in the account are invested to allow the account to grow the investment earnings. HSA's are owned by the individual and controlled by the individual allowing them to decide on contributions, withdrawals and investment options. HSA's remain with the individual regardless of employment, age, where they live, marital status or future medical coverage. There are no "use it or lose it rules" as there are with FLEX accounts.
Where can I get an HSA account?
American Health Value - http://www.americanhealthvalue.com/ is one company which offers the administration of this account for a nominal fee. At this web site you can learn just about everything there is to learn about HSA's, about the mechanics of setting up an account, how the account works, how to withdraw and contribute funds, what expenses are eligible and what types of options can be set up. You can click on Insurance Agents by State to find a local agent in your area that sells the high-deductible medical insurance plans that are designed to work with the HSA account. In New Mexico I contacted Judy Anderson, an independent insurance broker in Albuquerque. She has insurance plans that fit the HSA requirements. She can be reached at 1-800-627-2433 or jeander@aol.com for further information on New Mexico insurance plans with an HSA. She advised me on the rating of the insurance companies she would quote which were all "A" rated. It is important to find an insurance company for any insurance you buy that has a good rating since if they go out of business you will need to find another insurance company and if you have too many claims you may have difficulty finding one that will insure you. Happy Insuring!
Coming Soon - Retirement Planning for Small Businesses
Article author: Raj Kumar
