Having an online saving account should be a top priority on your personal finances. However, there are also many different options to choose from… Here’s the most popular one.
First of all, why should you create an online savings account? The main reason is, obviously, to save money. It could be because you’re planning on making a big purchase, like a down-payment, or simply because you want to control your spendings. Anyhow, this is a great opportunity to save money, especially in the short term.
Storing your savings in an account of this kind will also prevent you from the temptation to invest them in risky short-term plans. While you can make big profits if you have a solid lifetime investment plan and avoid these 5 investment mistakes. However, in the short term, it can easily go wrong, which is why it can be safer to just store your money away safely.
Another reason to create an online savings account is that there should always be a place where you store your emergency fund. This is an amount of money reserved only for extreme situations, which is why it should always be kept safe and stay available for you. In the worst-case scenario, this money will keep you alive for a few months if you suddenly lose your job or have an unexpected expense.
The online savings account from Discovery is one of the most famous ones in the market. To open an account, you simply need to enter your personal data and transfer some money from your current bank account. This can be done by check or electronic funds transfer.
Some of Discovery’s advantages are its lack of monthly fees or minimum balance needed to earn its high APY. This Annual Percentage Yield is 1.05%, one of the best offers out there. You’ll also receive great customer service once you have an account.
In contrast to these, the cons are minimal. The most important one is the small number of physical locations. As long as you’re comfortable with managing your transactions online, this shouldn’t be a problem.