With the growing popularity of online bank savings accounts there are many sensible savings tactics you can use to maximize your paycheck and grow your nest egg. For example, most online banks like Ally Bank are FDIC-insured and offer products similar to brick-and-mortar banks. But what online banks save on overhead and maintaining branches, they can pass on to you in the form of great rates. Take a look at the rates on Bankrate.com to see the difference. But how can you maximize those savings and put away more out of every paycheck?
Automate deposits and transfers.
The first step to making the most of your paycheck is to sign up for direct deposit, which can help make more of your money available for use more quickly. The sooner your money goes into your account, the sooner it begins to earn interest. With the Ally Bank Online Savings Account, for example, your interest is compounded daily, so your balance can grow faster. In addition, you can have a portion of each of your paychecks deposited into both your checking and savings account to make saving more convenient.
You don’t want unnecessary fees eating into your balance every month. Check the fine print of any savings account you consider to make sure you know all the terms and conditions, like minimum deposit requirements. At Ally Bank, we don’t charge monthly maintenance fees and you can open and fund any account with any amount.
Manage accounts online.
Having online access can facilitate ongoing cash flow management as you check off purchases within your budget. For example, if you've budgeted $200 out of your checking account for groceries but end up discovering some bargains that knock your total down to $150, you can quickly log in to your account and move that $50 from checking into savings. Or put $25 into savings and consider the other half "mad money" to be used as a small reward for sticking to your budget. Either way, you're making better use of each of your paychecks in order to maximize your savings by staying on top of your finances.
Choose a great bank.
While most banks now provide some type of online access, not all of their websites are as easy and convenient to use as the Ally Bank website. And because we’re an online bank, we can offer consistently competitive rates along with excellent customer service. Ally Bank is committed to making saving as easy, secure and rewarding as it can be. Learn more at Allybank.com or call live, 24/7 customer support at 877-247-ALLY (2559) today.