Online Banks May Offer Higher Interest Rates for Your Savings

Stock market got you down? Looking to put more money away in case of an emergency? If so, you've probably been thinking about stashing more money away in the bank. One of the benefits of the bank is that it provides you safety with FDIC insured funds, and your money is easily accessible. Unfortunately, most banks offer dismal interest rates on basic savings accounts. If you're looking for relatively high interest, you're faced with the likelihood of buying CD which locks your money up for a period of time, or depositing a large sum of money to take advantage of the higher rates they offer. But if you're just getting started or don't want to tie your money up, there's no reason to let your money sit and not even keep up with inflation.

That's where online banks come in. There are plenty of online banks that have sprung up in the past few years, and their big attraction is the ability to deposit small amounts of money into a savings account and still take advantage of interest rates that compete with, or even exceed CDs at your local bank. Of course, these online banks aren't for everyone, but they can be a great way to put your savings account to work so that you're at least keeping pace with inflation.