Are you in the market to take your gazelle intensity in the savings department to a new level? Before you hit the pavement looking for a new traditional local bank branch, consider moving your savings to an online bank! Online savings accounts tend to have the best rates and benefits. Overall, online banks provide an amazing service and the fees are much lower as well.
Let’s face it, even if not for the amazing benefits online banks provide – you’re using the web for most of your transactions. Why not join in the ever more popular online banking experience. If you’re willing to take the leap or are just researching your options, here are three key advantages to consider.
High Interest Rates
Online savings accounts typically have great APYs or Annual Percentage Yields compared to traditional banking. This is compounding interest that your money earns! Online banks are able to pass on their savings of low overhead to you. That could mean an APY multiple times that of the FDIC national average. Take that brick and mortar! Click here to see an example of how this compounding interest works in your favor.
Lower Fees
Ok, so low overhead for the online bank = low management fees for your account. This doesn’t mean you can overlook what is happening with the transactions in your account. Online banks are still pulling in billions of overdraft fees. So, continue to PAY ATTENTION to how your spending. A savings account is for SAVINGS. The money shouldn’t be touched as much anyway. However, it is nice to note most online banks may waive overdraft fees entirely. Debit cards are usually free as well and the online bank may pick up the charges you may incur when using the debit card at a local branch. They may also provide free services like making online bill payments. Make sure you read the fine print!
Harder to Liquidate
Online banking is amazing for savings accounts because it’s more difficult to reach. Yes, you may use the debit card to make payments and withdraw cash but transferring money out of the account to a traditional bank could take up to two days. Who has that kind of time when you need the cash in your hand?! Although this may sound like a downside, it isn’t. This two-day lag encourages you to thoroughly think about the money decisions you make. Gives you a cool off period before you make a huge impulse buy.
Begin saving NOW!! Do you research and compare all the great online savings accounts and the benefits they may provide. They are quick to open and extremely user friendly. Remember, online banking offers a treasure trove of advantages to savvy customers. The APYs are high, the fees are low and the seamless convenience all help to boost your savings!
Top 5 Online Savings Accounts for October 2019
(per Bankrate)
- Best Overall Rate: Vio Bank – 2.42% APY
- Runner-up Rate: Popular Direct – 2.30% APY
- High Rate: Comenity Direct Bank – 2.25% APY
- High Rate: MySavingsDirect – 2.10% APY
- High Rate: WebBank – 2.10% APY
Good to know! Definitely putting this on my post-vacation to-do list. I’ll let you know how it goes !!