An Online Savings Account is a Safe Way to Help You Earn More Money

As you get older it is a pretty good assumption that you want to keep your money as far away from risk as possible. While you are still bringing in income it is hard to keep moving money that you don’t need to spend in and out of safe investments. And then when the time finally does come that you need the cash you want it to be as liquid and as easy to access as possible. One of the safest investments out there is a savings account. But it is also one of the lowest returns that you can earn on your money as well. But what many people don’t know is that there are online banks out there that offer savings accounts that offer interest up to 10x higher than what traditional banks offer.

What is an Online Bank?

Online banks offer the same products and services that traditional banks offer minus one thing. They do not have brick and mortar buildings all over the country for you to visit. Because of this they save a lot of money in overhead by eliminating staffing and the upkeep of buildings and they pass these savings on to you in the form of interest and lower or no account maintenance fees. There are even online banks that are offering cash bonuses just for opening an account.

How Can I Get My Banking Needs if There is No Physical Bank I Can Visit?

Technology is advancing everyday and if you take advantage of it then your life will become much easier. You can open an online savings account from your home computer. You can then link your online account to your current checking account (at your traditional bank) and transfer money back and forth for free. Online banks have 24/7 online and phone support so that you can have any questions that you have answered. And if you need to deposit a check you can do so with a smartphone and get the same results as you would at the teller or ATM. If you already take advantage of all of these things with your traditional bank then you probably don’t have to drive down to the bank anyway. And online banks have a network of ATMs all over the country and some even refund you ATM fees if theirs is not available.

Utilize an Online Savings Account to Make Less and Earn More

The heading is correct. You can utilize an online savings account (or any savings account, you will just earn the most interest with an online savings account) to earn less and make more. And you can do this by utilizing your direct deposit paycheck that you receive from you employer or wherever you get your income from. On your direct deposit form you can designate where you want the money from your paycheck to go. You can apply this to multiple accounts and then designate how much you want to go to each account. Now you just need to determine how much less money you can love off of each week. Then have that amount sent to your online savings account each paycheck. The key is to set up your direct deposit this way and forget about it and never remove money from your savings account unless you need it. So lets say that you can live on $100 less per week (that’s one less dinner dining out for a family of 4). So if you can make it 1 year without needed to withdraw any money from your savings account you will have $5,200 saved up plus the interest that you earned and plus any signup bonus that you received. Not bad for tricking yourself that you were earning $100 less a week.

Keeping Your Money Safe and Earning More

As you get older you don’t want to put your money in volatile investments that will have large swings up and down. Yes you have the potential to earn less but if you mistime the market than you could be looking at a lot less money. $100 a week (or whatever you can afford) is not going to drastically change your main investment strategy. And knowing that your money is in good place, safe from losses, will allow you to sleep better because you have a good pile of cash ready to go whenever you need it. And if you want to invest the money but are not sure where the market will go. You can wait for the right buying opportunity and then you will have a good base to invest and hopefully give you the growth that you want.

Matthew Coan is the founder of the financial website Casavvy.com. Helping users find the best credit cards, checking accounts and savings accounts to help them earn more money. 

What to Look for in a Savings Account

More than a quarter of Americans do not have any money in savings, according to research released in June 2013 by Bankrate.com. And nearing retirement is a big incentive to consider your long-term financial stability. 

If you haven't started saving already, now is the time to open a savings account.

To assist you in the decision-making process of choosing where to open your savings account, here is a guide that emphasizes the importance of low fees, limited restrictions, bank insurance, high-yield interest and other factors. 

· Watch for Fees

Beware of hidden fees. Saving accounts may have fine print that lists costs that will take from the money you are trying to save with maintenance fees, activity fees, monthly fees, withdrawal fees and others. Make sure to ask questions -- like whether there is a minimum balance requirement or if it costs to transfer to the account when your checking is through a different bank -- before handing over your money.

A good bank will allow you to put money aside without hassling you with excessive charges.

· Check for Accessibility

Although this account should not have withdrawals taken at the frequency of a checking account, strict restrictions (which may include fees) on the number of withdrawals is not a good sign. Look for an account that will allow you access to your funds in case of an emergency. You will be saved from turning to credit or taking on extra debt. 

· Earn that Interest

Forbes.com recommends finding online savings accounts with interest rates around 0.87 percent or traditional banks with around 0.74 percent. But beware of introductory interest rates that shrink after the first few months.

If you are able to add money to your account on a monthly basis, your bank may offer special rewards like higher interest rates.

· Look into Online Banking

An ad for a promotional savings account in your mail or a solicitation from your bank teller may not give you access to the best savings account available. Shop around, and compare offers from online banks.

Online banks offer special incentives as they try to convert customers used to working with traditional banks. These banks cost less to operate, allowing the banks to offer higher rates of return on savings accounts.

· Research Credibility

The banking industry is not immune to economic fluctuations, and if a bank suffers major losses, your money may be at stake. Before you commit to either an online or traditional bank, do some research into a bank's credibility.

Check to find your bank's Tier 1 capital ratio, which is a measure of strength based on equity and risk. Experts recommend avoiding banks with a Tier 1 ratio of less than 10 percent.

Makes sure your money is insured. FDIC insurance protects up to $250,000 per depositor. If a bank you are looking at does not have this protection, take your business elsewhere.

· Move to the Next Level of Savings

As you learn to put aside a portion of your income for savings, you can move to the next step: opening a savings account that is an investment product. Divide up excess funds into accounts with greater interest rewards and tax benefits.

Financial products to help protect your retirement years include IRAs, 401(k)s and annuities. Once you've saved up a lump sum, an annuity can give you access to regular payments to supplement Social Security payments that might otherwise be your only income during retirement.

Saving money in an envelope at home or letting a balance grow in your checking account may seem like enough to tide you over for the next few years, but truly preparing for the future will require putting in more effort, starting with getting a balance in the right savings account.

Alanna Ritchie is a content writer for Debt.org, where she writes about personal finance and little smart ways to spend (and save) money. Alanna has an English degree from Rollins College.

How to Automate your Monthly Payments

Every month, significant cash flow leaves your bank account to cover your fixed expenses. Most households have at least a dozen different bills to that they are responsible for monthly, including car and home owner's insurance, car payments, mortgage payments, utility bills, cell phone bills, home technology (phone, internet, cable) bills, credit card payments, and more.

Bills may come out at different times throughout the month, and keeping track of them all can become complicated. If a payment is missed or late, there are consequences:

• Interest charges and late fees
• Poor credit rating
• Cancelled services

In order to avoid these issues, there is the option of setting up bills with an automated payment option. There are different methods that this can be accomplished, for example:

• Setting up payments through your online banking system - if you use online banking, you have the option to setup automatic bill payments to go to any payee. You simply need to have a copy of your bill to ensure payments are made to the right account. You can generally select the date the payment needs to come out, and make it a recurring activity for as many weeks or months as required. You do have access to remove or change an automated payment of this type at any time. Paying your car insurance online, or any other bill using this method protects you from missing any payments when they are due.

• Setting up automatic payments with the vendor - some companies require that you setup automatic payments as part of the terms for providing you with a service. For example, your mortgage lender may require that you provide them with the details that allow them to withdrawal the payment amount from your checking account on a monthly basis. When you use this method, even if the amount of the bill changes, the full amount that is due will be withdrawn. There can occasionally be a charge for setting up payments through online banking, but having the vendor make the withdrawal does not typically come with additional fees.

• Pay bills with USPS eBillPay - the US Postal Service provides a service that allows you to setup all bill payees online. The monthly payment amount does not need to be fixed each month, as provided the accounts are setup correctly, the system facilitates the process of issuing payment. The USPS system can also generate e-bills. While vendors can also supply  e-bills, this service ensures everything comes from one place. The only catch is there is a service charge. The first 6-months are free provided you need to make less than 20 monthly payments, but after that it is $6 per month for up to 20 payments.

Your financial standing is important, and using these automated payment options can ensure that your bills are paid in full and on time.

Using Online Tools to Help Manage Finances After the Age of 50

Once reaching and passing the age of 50, most have a good understanding of their personal finances. Still, managing finances can take a considerable amount of time, and dealing with retirement is, for most, a foreign concept. Fortunately, the Internet provides a number of tools to help those older than 50 manage their finances more easily and effectively. Here are some great tools to use.

Online Banking Interfaces
Everyone over the age of 50 remembers a time when banking was done on paper. The only way to get important information was to stop by the bank or to wait for monthly statements to come in the mail. Careful checkbook balancing was necessary to manage monthly budgets. Banks, however, now have online resources to provide their customers instant access to their information. By taking advantage of these tools, it is possible to have instant snapshots on how much money is in each account. Further, these online resources allow customers to transfer money between accounts and even to other people. Incorporating these tools into day-to-day financial dealings can save trips to the bank.

Online Bill Pay
Most over the age of 50 send bills by check or pay over the phone. However, a growing number are allowing customers to pay online, which saves both postage and time. In addition, these sites also allow people to set up automatic bill payment schedules. People often travel more after reaching the age of 50, and avoiding the hassles of paying bills while traveling can be a tremendous relief. Some companies are even offering discounts to those who pay their bills online, and for those who are looking to help the environment, online bill pay can help eliminate unnecessary paper usage.

Planning Tools
Planning for retirement spending can be a major hassle; the financial calculations can be difficult, and many have to adjust their lifestyle once retirement comes. However, there are a number of online tools that are far easier to use than financial calculators. These tools present information in a manner that is easy to understand, and many can even offer tips and suggestions to users. While meeting with a financial expert is useful for most, these tools can eliminate the need for some meetings. Financial experts can even give advice about using these tools more effectively.

Connect With Others
Internet forums can be a great resource for those looking for financial advice. Almost everyone who has passed the age of 50 has some experience with managing their finances, and many communicate in online forums to share information and tips with each other. Ranging from retirement advice to saving money on bills and food, these tips can help people spend as little as possible. These small savings add up, and many people use them to enjoy the retirement of their dreams.

At and beyond 50, the demands placed by children often drop, and many can begin to taste independence for the first time in decades. With some careful planning, those who are 50 or older can use online tools to enjoy the lifestyles they want to live.

Author Bio

Sara is an active nanny as well as an active freelance writer. She is a frequent contributor of http://www.nannypro.com/.

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• 5 iPhone Apps to Help Manage Your Spending (50plusfinance.com)

Private And Public Sector Organizations Prefer Direct Debit

The rise in popularity of online banking has led many British consumers to abandon traditional payment methods, such as cash or cheque, in favor of automated payment methods, such as direct debit. As a result, many organizations have had to expand the range of payment options they offer.

Flexibility

According to one estimate, over 3.3 billion direct debit payments were processed in 2011, an increase of two-thirds o the number processed ten years earlier. One of the reasons direct debits are becoming widely accepted is their flexibility. 

They are ideal for ach payment processing of the same or varying amounts on the same or varying collection dates. They are also less expensive, in terms of transaction costs, than traditional payment methods, including credit cards. 

They are also immune to the effects of unexpected events, such as postal strikes, which can play havoc with payment methods that rely on paper. Their only real drawback is that they are not suitable for one-off payments.

Efficiency

Public sector organizations are always looking to improve their efficiency as an alternative to making job cuts. As a result, many public sector organizations, including local councils, the Driver and Vehicle Licensing Agency (DVLA), and TV Licensing, now offer direct debit as a payment option for Council Tax, business rates, commercial and domestic rent, road tax, and many other recurring payments. In fact, many private and public sector organizations offer discounts to encourage consumers to pay by direct debit.

Direct Debit Guarantee

Direct debits for the public sector ensure both parties that bills are paid on time. If a direct debit payment fails, both the payer and payee find out quickly and can take prompt action to rectify the situation. 

Furthermore, the Direct Debit Guarantee entitles consumers to a full and immediate refund if an error is made in the payment of a direct debit from their bank or building society account, regardless of who actually made the error. 

Direct debits can only be set up for payments to approved payees, who are subject to rigorous quality control procedures and must provide indemnity guarantees through their banks, so unscrupulous organizations cannot take payments that are not due to them.

Direct Debit Versus Standing Order

Over 75% of British consumers already pay their Council Tax by direct debit or standing order. The principal advantage of direct debit, however, is that the payee can make amendments to the payment amount without needing to obtain the payer's signature on each occasion. 

The payee must, however, give advance notice, typically 10 working days, of any change(s) to the payment amount and collection date. If the collection date falls on a weekend or bank holiday, the payee must take the payment after the due date unless they give advance notice. 

Most bank and building society accounts, including some special savings accounts, accept direct debit payments. Banks and building societies retain the details for 13 months from the date of the last payment. 

At the end of this period, known as a dormancy period, the payee must obtain the authority of the payer to continue collecting payments.

AUTHOR BIO

Peter Smith holds a Master's Degree in business administration and has worked extensively in the public sector during his career. He regularly writes about automated payment methods, including direct debits for the public sector and various business-related websites and blogs.