Do you know what a internet savings account is? Basically you can think of it as being a normal savings account — the main difference is the fact that they are only offered online. Finding the best one can be a great thing for your financial planning efforts, since they usually pay a higher interest rate. Comparing their features against your needs is the most helpful way to make a decision. The reason why these accounts pay more interest is because you conduct all transactions online, which generates savings for the bank. Less costs for the bank means more money in your account.

When trying to find the best options, you have to take into consideration a few items. It is likely you will not find all the characteristics you want in just one place, so ranking your preferences and comparing all services offered will be very useful for you. Here are some tips on what you need to pay attention to.

“Rate shoppers”, as they are known, in general look into the APY (annual percentage yield), or how much money you make from your deposits in a given year. This standardized rating makes your life much easier when comparing investments.

One specific characteristic of internet savings accounts that you should watch out for is how easy or hard it is for you to access your money, should you want or need to do it.

Sometimes you can have linked accounts, name them especifically, and transfer money from one place to another. In other words, you can name an account “car”, another “travel”, and so on, and then save money for specific targets. You may even find automatic savings plans, which will withdraw money from your account automatically, and help you save money regularly. You should also verify the possibility of transferring money regurlarly to your kids savings accounts — they will certainly thank you for that!

As for safety and security, you should check whether the financial institution you are interested in is insured by the FDIC, as well as check the safety procedures on their website.

Now you have a basic guide on how to rank internet savings accounts. Now it is time for you to perform your research and make the best of it!