Best Ways To Save With The GE Capital Online Savings Account

For nearly a decade, savings account annual percentage yields have resided below 1.00%. Most banks and financial institutions offer a paltry 0.01% APY right now. Banks that offer such low yields often charge fees to the account, too. A single fee or service charge could cause a consumer to lose money. Typically, consumers want to earn money on interest with these accounts, and better options are available today.

Online Savings Account From GE Capital

Take, for instance, the GE Capital online savings accounts. Currently, the bank’s savings account features an excellent 1.05% APY. That’s nowhere near the high rates of the early 2000s, but such high rates won’t return anytime soon. A 1.05% APY is many times more than what the average bank provides now. Plus, GE Capital doesn’t impose account minimums or charge transactions fees of any kind.

Interest is compounded on a daily basis and then paid on a monthly basis.

Without a doubt, average consumers will find this savings account perfect for their needs. High-yield savings accounts are difficult to find. This particular option comes with few strings attached, while providing maximum return based on interest. One negative here includes a lack of access to physical branches. On top of that, customers that want an ATM card are out of luck because that’s not an option.

Here’s a quick look at how customers can maximize their savings with this account:

Set Up Direct Deposit

GE Capital gives online savings customers the option of direct deposit. Customers can deposit a portion of each paycheck into the account automatically. By automating the savings process, consumers are forced to accrue savings. The average person sees meager savings because he or she tries handle this process manually. Direct deposit ensures that money is placed into the account on a regular basis.

Don’t Hesitate To Make Extra Deposits

Banking customers often make the mistake of relying solely on automatic deposits. It never hurts to make extra deposits on top of a direct deposit, though. In doing so, money accrues faster, and the same applies to interest accrual. A few extra dollars here and there can make an incredible difference over many years. Manual deposits require extra effort, but they can pay off in a surprising way down the road.

Avoid Withdrawing Money From The Account

Like all savings accounts, GE Capital allows customers to make withdrawals or transfers out of the account. Account owners should avoid withdrawing funds from the account at all costs. A single withdrawal hurts the account balance and lowers interest accrual based upon the amount taken out. Savings accounts are meant to grow rather than shrink. For that reason, withdrawals should be avoided whenever possible.

Check The Balance From Time To Time

GE Capital provides customers with a simple and straightforward online banking system. Online savings account holders can check their balances whenever and wherever. On occasion, a given person should check his or her balance. Seeing the money grow can be a motivator for putting more money into the account moving forward. Now, consumers should take note that checking the balance every single day isn’t so helpful.

Is GE Capital’s Online Savings Account For Everyone?

No banking product or savings account is perfect for each consumer. Still, GE Capital has created a simple savings account with a high interest rate. A lack of fees and minimum account balances helps make this account suitable for most consumers. Those who do open an account will need to up their saving efforts. Otherwise, they could waste that high interest rate and the potential gains that it offers.

GE Capital Online Savings Account Pros and Cons

Pro: High APY, no transaction fees, no account balance requirements.
Pro: Simple to use online banking portal.
Pro: Direct Deposit and other deposit options are available.

Con: No ATM card and no physical branches for customers.