There is no point in sticking with a low-rate savings or CD Account with fees, since there are so many high-yield accounts available with dozens of online banks. These are often better than conventional banks since they don’t have as much overhead and can afford to give customers back more. The downside of some of the online banks is that they sometimes charge fees that are entirely unnecessary. To put it simply, a savings account without fees is going to be a legit option, while one that tries to charge fees is likely a scam. You should never be charged to open or maintain a savings or CD account online.
Your money is just as safe when “stashed” with an FDIC-insured cyber account (with no fees) as it would be with a local office of a bank branch. You’ll still get customer service if you need it, as well as technical support, thanks to online chat features and toll-free numbers. Online banks still have the same hours as physical banks and don’t take calls after hours or on Sundays, although you’ll still be able to logon and access your account for free 24/7/365.
Savings Account Without Fees When Withdrawing
What happens if you have to use some of the money suddenly? Some banks might charge you a penalty fee for withdrawals. Make sure you put your funds in a cyber account that will allow you up to a certain number of transactions for free per payment cycle. Six transactions without penalty is usually the limit with most online savings accounts. It might differ with a Term CD account, although the yield is usually higher if you are able to keep the money in a CD account without withdrawing for the duration of the term. Some cyber banks do offer “no-penalty CDs”.
There might be a requirement that you put in a certain amount of money towards your savings account with fees every month – especially if it’s a “savings builder” account. As long as you can at least put in $100 each month, you should do all right with this kind of account.
What about the APY? Will it change? For the most part, banks don’t change their APY very often. It’s common to see the percentage remain the same for several months. Only in extreme economic downturns or upturns will they change.
Don’t feel overwhelmed with all of the options for savings account without fees available on the internet. As long as you use one that is FDIC-insured and offers excellent customer service, such as CIT Bank, you should be all right.