In today’s world where time is money and everything is accessible over the internet why go to the branch and waste your time doing something when you can do the same thing using the internet in seconds. Online savings accounts are a new way as they are more convenient and saves time. They provide you with higher APY too. The online saving account is a great alternative to traditional banking as they are far more convenient. Time is money in this modern era and people are so busy that going to a branch for transactions is just too hard and inconvenient for them. Traditional brick and mortar banks have very high overhead costs which is something you will not have to worry about with traditional banks.
Online savings accounts are also very convenient as you can access them from your phones or computers so it does not matter where you are. Especially if you are one of the people who travel a lot, this can save you the extra hassle and effort. This will save them time and money. They will save money as the items for other banks charges a fee for every transaction and if you’re doing it online you wouldn’t have to pay this particular. Moreover, traditional banks often charge very high fees to make a profit and cover their overhead, with online savings accounts this is minimized and who doesn’t like to save money wherever they can.
With that, they also give you low-interest rates like 0.1% for a year which is not enough as you pay more money just to maintain your account. Who would not want to save more and pay lower interest rates? These online banks are open 24/7 so you don’t have to worry about being late or being on time anymore as you can access it at any time of the day. Because if this service you don’t have to worry about your money too as the FDIC has it insured and protected. Having bank accounts in any bank costs you overhead fees which are a lot to pay but in an online savings account, you don’t have to worry about this fees. This service has a lot of advantages and provides you with many more features than a checking account. The average interest rate for traditional banks is 0.6% whereas online banking can give you almost 1.2% which gives you more returns at the end of the day. For example, if you put in a $10000 after a year in a traditional bank you only get $1 but in an online account, you get $120 which means you get higher returns. Also, the traditional banks charge overhead fees which makes the fess more than the profits you have earned. Some banks also charge a fee if your account has a low balance or if you overdraw your account whereas in online banking the same fee is comparatively much less. Online banking is insured by the FDIC which offers you protection so you also don’t have to worry about fraud.
People move their accounts to savings as who wouldn’t want to benefit from the perks of getting a higher return and paying a lower fee in return to that. Different banks have different regulations because of which you have to do proper research on what bank you have to choose so that you can reap the most benefits out of your account. Who wouldn’t want all their services in their pockets at all times anyways? Plus it’s not hard switching to an online account, all it takes is a couple of easy steps that you have to follow.