There was a time when a savings bank account was used to stash money with minimum benefits. The interest rates offered on them were so low that mid or small-sized accounts did not earn anything worth mentioning from the savings. All that changed in the last few years and, as a result, the high-yielding savings accounts have performed better than even the stock market last year. This had not happened in the last ten years.
When it comes to the stock market, a well-performing year can offer you more return than you can even dream of getting from a savings account. However, in 2018, the higher interest offered on the savings account managed to do something unthinkable. The annually yielded interest rates on your savings turned out to be better than how the stock market performed with your investments. This is surely a piece of great news for people who have always been little unsure about investing in stocks because of its volatile nature. The saving accounts are much safer and the chance of losing any money is practically zero.
If you are wondering how you can keep your money in a high-interest rate savings account then the answer is ‘online banks’. The online banking system is a newer concept and not everyone is aware of their facilities. You must understand that online banks require lower establishment expenses compared to physical banks. They also have less maintenance cost. Hence, it is possible for them to offer their customers a higher interest rate. The online banks pay a high-yielding interest rate, which can be way more than 10% or even 20% in some cases. This surely is good news for you if you trust the savings account for keeping your hard-earned money. Now, your money will grow faster with an online bank.
There are many other benefits of online banks. To start with, they do not require you to maintain any minimum balance. This is one of the major reasons why customers have started to turn to online banks. They offer their customers free ATM cards too. You can simply link your existing physical bank account to your online bank and transfer money to it whenever you require. The experts are predicting that the online savings accounts will outperform the physical accounts by an even higher margin by the end of this year. The saving account interest rate with online banks will secure your future with more financial gain. You can fight inflation better if your money grows faster and at a commendable rate.
Just imagine the possibilities you have with higher savings. You can use that money to invest in high-profit funds and get the most out of your savings.