Are you in search of a new bank to avail the best of benefits? If yes, then stop for a while and give the idea of shifting your banking to online a chance. Opening savings accounts online mostly opens the avenue to best rates right in front of you, and these also furnish you with top notch services with fees lower than the most.
The reason online banks have rode up the scale of popularity over the last few years is as easy as ABC: they have in store a better deal in terms of higher interest rates against your savings account.
Let’s have a look at the three key benefits compelling you to get into the current online banking scenario!
Lucrative Interest Rates
Listing down the benefits won’t be quite right if it doesn’t start with better interest rates that an online savings account offers. Due to its cheap operating cost compared to that of the brick-and-mortar banks, online savings account produces better return. The business model costs a lot lesser due to its convenient and easy requirements- smaller space needs, fewer staff, and almost no waste to name a few .
As the expenses are cut down in almost every aspect, online banks can share portion of their savings to you causing a visible hike in savings rates.
Nominal Fees
Another prospect that keeps online savings account way ahead of traditional banks is that they charge strikingly lower fees for every segment- right from checking overdrafts ranging up to account maintenance per month. Bank fees might seem small, but over a period they can add up to a visibly huge amount.
Even, an online bank may waive off total overdraft fees, charging just the interest on an overdraft line of credit. Lower fees on the investment accounts is also worth mentioning. Generally, debit cards are free.
Streamlines Mindset
Online banking goes good with savings accounts. Opening an online savings account, you only make it a bit more difficult to get to. Though withdrawing cash or making purchases is no biggie with a debit card issued by traditional banks, money transfer from an online savings account to another brick-and-mortar bank can take up to two business days.
That sounds like a limitation, but then your aim with a savings account is to save and not spend money. The two-day delay discourages instant spending.
That mindset, and the safety of having your money a bit tougher to access, is the mental trump card to turn spendthrifts right into savers.
Online Savings Accounts – Thumbs Up or Thumbs Down?
If you are one who gets paid in cash, inclined to make frequent deposits and withdrawals, or do not have ample access to digital medium, opening an online savings account might cause more inconvenience to you instead of providing you with the desired benefits.
However, if you can keep an amount of your savings untouched for a certain period of time, advantages from great online savings account rates would still bear its fruits for you, though. All that you have to do is to link your online savings account to your local checking account and voila! The benefits would be right at your fingertips.