Many people manage their bank accounts online, which is why the increased popularity of online savings accounts is not surprising. Those who already have online accounts are aware of their advantages, especially when they are connected to banks that operate online only. For anyone considering opening their first online savings account, these are the top benefits to look forward to.
Most online savings accounts are easy to manage. Instead of having to wait for the bank to open to make a deposit, customers can stay home and manage their account online at any time. They can transfer money between their checking and savings accounts and keep track of balances as they please, even on weekends and holidays. This kind of access makes it easy for customers to accurately track their finances.
Better Online Features
It’s common for traditional banks to have a website, but it’s not usually as extensive as the websites for online banks. After all, for online banks, the Internet is their only domain, while regular banks are divided between brick and mortar locations and the Internet. This typically means online banks have more updated websites with better features, since that’s their main focus. For example, they might have a great mobile website or even an app to help customers manage their account on the go.
Higher Interest Rates and Fewer Fees
Many banks that operate primarily on the Internet offer great interest rates on their online savings accounts. This is because they have fewer overhead costs than traditional banks. For example, Discover Bank offers a 0.90% APY. Customers who open online savings accounts should take advantage of these higher rates by putting as much money away as possible so they reap the benefits over time. And of course, the same lack of overhead costs that allows these banks to offer higher interest rates permits them to impose fewer fees on their customers, saving them money over the years.
These benefits should be reason enough to consider opening an online savings account. After all, most people could stand to save some money and get easier access to their account at the same time. Opening an online savings account makes all this possible.