If you are interested in opening a savings account and you are making your research about the pros and cons of online accounts, then you should take a look at this guide.
It is said that online savings account offer better services and savings rate than traditional banks. So, if you are about to open your first savings account or you want to switch to a better one, you should check out the following guide.
Perks and benefits of online savings accounts
- Interest rates: They usually are higher than the ones offered by traditional banks. Although this may not seem a vital feature when you've just started saving, it will definitely be a significant deal as time passes by and your savings account grows.
- Fees: In general, savings accounts don't charge plenty of fees, but traditional banks will probably charge you a monthly maintenance fee. Whereas online savings account don't have these kinds of fees.
- Withdrawals: Whether you have an online or traditional savings account, you will have a six withdrawals limit per month (set by federal regulations).
- Money transfer: People are usually concerned about how to access their money in online banks. However, it is easier than with traditional banks! You just need to link an external bank account and transfer the money to your savings account.
- Technology: As online banks don't have branches, they invest the most in technology and apps to offer the best service to their customers. This means that you can manage your account from your computer or smartphone without having to move from your couch.