{"id":18195,"date":"2023-01-06T12:15:00","date_gmt":"2023-01-06T17:15:00","guid":{"rendered":"https:\/\/wealthbytes.co\/?p=18195"},"modified":"2023-01-06T12:18:44","modified_gmt":"2023-01-06T17:18:44","slug":"best-online-savings-accounts","status":"publish","type":"post","link":"https:\/\/wealthbytes.co\/best-online-savings-accounts\/","title":{"rendered":"The Best Online Savings Accounts in 2023 – Where to Stash Your Cash"},"content":{"rendered":"
The secret to becoming wealthy is spending less than you earn, but what do you with that extra money? You can keep it under your mattress or a free checking account. However, you might not earn passive income with either of these two options so you can make money while sleep. Instead, you should consider parking your cash in an online savings account. There are so many great options for online savings accounts in 2023.<\/p>\n\n\n\n
Did you know that the average brick-and-mortar bank only gives around 0.13% interest on their savings accounts? If you have cash in a big bank, you need to move it to an online savings account. These banks are still covered by the FDIC insurance so your money is protected. While there are many banks, we list some of the best in the business that have been around for years and have solid financials. The average online savings account rate is around 3.5% which is substantially more than a big bank offers.<\/p>\n<\/div><\/div>\n\n\n\n
The best online savings accounts currently offer an annual interest rate of around 4.00% APY so you can expect to earn $40 in annual interest for every $1,000 you deposit. As savings account interest rates continue to increase, you will earn more each month.<\/p>\n\n\n\n
You won\u2019t be able to live off the savings account interest exclusively but keeping your extra cash in the bank is one of the necessary steps to become a millionaire<\/a>.<\/p>\n\n\n\n Let\u2019s be honest, savings accounts aren\u2019t the most exciting things in life. Especially when interest rates are often very low for most savings accounts at big banks. But that doesn’t mean there aren’t other options. If you follow our rules to help you save more every month<\/a>, then you should be focusing on stashing your cash in an online savings account. But really, you just need a savings account.<\/p>\n\n\n\n You need a savings account for the following reasons:<\/p>\n\n\n\n Earning a higher interest rate is one reason to keep a portion of your cash in a savings account, but you should also have a separate account so you don\u2019t accidentally spend the money you need to save for the future<\/b>. If it\u2019s not in your checking account, you\u2019re less likely to make as many purchases and this mental trick can help you get out of debt quicker<\/a>.<\/p>\n\n\n\n There are dozens of online banks to choose from, but you should limit your search process to these two factors:<\/p>\n\n\n\n You want to choose the bank that offers the highest interest rate on the lowest balance requirement possible. In many cases, you only need to keep $1 in your account to qualify for the highest interest rate.<\/p>\n\n\n\n After you find your banks of choice, you should see if they offer any additional benefits like mobile deposit or a high-quality checking account or money market account so you can keep all your cash at one bank.<\/p>\n\n\n\n If you keep your checking account at a different bank, that\u2019s ok too.<\/p>\n\n\n\n When comparing the various online banks, remember that federal law only allows up to six savings account withdrawals each month. You might be able to make additional withdrawals, but you\u2019ll have to pay a fee that\u2019s almost always $10 to $15.<\/p>\n\n\n<\/span>Why You Need an Online Savings Account<\/span><\/h2>\n\n\n\n
<\/span>How to Choose the Best Online Savings Account<\/span><\/h2>\n\n\n\n