Other Tips for Managing Your Online Savings Account On The Road

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Here are some tips for using and managing your online savings accounts effectively as a traveler:

Two-Factor Authentication

Having an extra layer of security during the login process is ideal. The harder it is for people to hack into your accounts, the better.

No Fees

Online savings accounts have pared-down services (since everything is online); thus the fees should be similarly pared-down. All you should need to do with your travel savings account is move funds to and fro between your bank account – which should never carry a fee.

Check With Your Bank

Your bank might offer a high-interest online savings account, which will make it even easier to transfer funds between accounts. (But again – check for fees!)

Set up Dedicated Accounts

I have an online savings account for my taxes, one for savings, and one as a “slush fund” where I invest extra earnings from my higher-income months (to use as needed during lower-income months).

Compartmentalizing each savings goal helps you track your progress better. More on this concept in the next section.

Watch Your Balance

If you have a lot of money in your online savings account (and you don’t have an immediate need for it all), consider moving some of it into a longer-term investment that will get you a better return. You don’t have to go crazy and risk it all (or any of it), but if you can afford to let it sit for a while, consider bonds (if you want a guarantee) or low-risk mutual funds. More on this below.