When it comes to choosing an online savings account, most people start – and stop – with the interest rate. But if two online banks are offering similar rates, the real difference shows up in everything else.
Here are four things to look at beyond the yield when comparing online banks and savings accounts.
Not all online banks are created equal. Look for FDIC insurance and verify that the bank itself, not just a tech platform acting as a middleman, is federally insured. It’s also worth checking how long the institution has been in business and whether it has a history of financial stability.
If you’re trusting a bank with your emergency fund or long-term savings, a little peace of mind goes a long way.
The promise of online banking is simplicity. But some digital experiences fall short. Before you open an account, explore the bank’s FAQs. Can you link external accounts easily? Transfer funds without delay? Is customer support available when you need it?
Go to the App Store and check out their mobile app reviews. In most cases, that’s the primary way you’ll interact with your account, so you should make sure the app is intuitive.
Some online banks offer great rates, but hide the tradeoffs in the fine print. Pay attention to:
A good online bank puts transparency front and center.
This one’s less tangible, but still important. Look for trust signals:
Online shouldn’t mean impersonal. The best online banks make it easy to feel connected, even without a branch.
Looking for an online savings account that combines strong rates, real service, and the backing of an established institution? Learn more about First Foundation Bank's Online Savings Account