Your parents have reached a certain age and situation in life. And, you've realized it's time to have a conversation about the benefits of online banking. Helping them find the best savings account for their needs is an important part of helping them remain independent, and it's generally accepted as a good financial move.
As people approach retirement, financial planners tend to suggest moving savings into options that are less susceptible to the ups and downs of the financial markets. An important component in the mix is a cash reserve, usually in a savings or money market account that can be accessed for emergencies or other unexpected expenses.
Kathleen Dollard, a certified financial planner with Nashoba Financial Planning in Boxborough, Massachusetts, explains, "Somebody who is older, I'd like them to have [an emergency fund equal to] about 30 percent of their annual income in a safe, interest-earning account." And what does she think is the best savings choice for that account? "I like them to use an Internet bank because, typically, you can get a lot higher interest rate there than you can in your local bank or credit union," she says.
Online banking has become a popular banking option even for people over 55. And online banks continue to be able to offer the best rates because they don’t have the overhead of traditional banks. The convenience of banking from home or on-the-go can be appealing to retirees, as well.
Finding the best savings account for your parents means looking for great rates, convenience, and excellent customer service, all without monthly maintenance fees. For all of those features and more, consider the Ally Bank Online Savings Account and Money Market Account. Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.