Upsides of Having an Online Savings Account

Are you thinking about opening a new savings account? Putting money aside in a savings account is one of the smartest things a person can do. But you want to make sure that you are trusting the right financial institution with your money. More and more people are choosing online savings accounts over traditional ones. There’s a good reason for that, too; online accounts offer a lot of benefits that regular savings accounts do not. Keep reading to learn more about these advantages and why you should consider opening an online account today!

Online Savings

Better Interest Rates

One of the biggest perks of having an online savings account is better interest rates. Often, interest rates for online savings accounts are many times higher than what traditional banks offer. When you are just beginning to save, you may not notice much of a difference. However, as your savings account continues to grow, you will see just how important better interest rates are.

Fewer Fees

Generally, savings accounts don’t come with a lot of fees. However, online banks still tend to charge less than their traditional, brick and mortar counterparts. Regular banks might charge a monthly maintenance fee. This fee is usually only a couple of dollars every month. Additionally, it may be waived if you meet specific requirements, like maintaining a minimum balance or having a checking account with the bank. Other fees you should watch out for include insufficient funds, ATM, wire transfer, deposited item returned, and paper statement copy fees. On average, online savings accounts come with much fewer fees, which means less hassle for you and more money in your saving account.

Easy Money Transfers

One of the biggest concerns people have about online banks is that they believe it will be difficult to access their money. Usually, however, this is not an issue. In general, setting up an online savings account involves linking a checking account and transferring money into the new account. The majority of financial institutions will keep those accounts linked so you can easily transfer more money into your savings account. You may also be able to request a wire transfer or a bank check, but these can come with fees (depending on your bank).

Better Tech

Because online banks don’t have traditional branches for people to visit, they tend to focus all of their customer services efforts on new technology. This typically translates into better websites and apps that allow customers to take care of their banking needs wherever they are, whenever they want. This means it’s easier for you to manage your savings account, transfer money, and make mobile check deposits when you need to.

Longer Customer Service Hours

Along with better apps and tech, online banks tend to have longer customer service hours. A brick and mortar bank may close at 5 p.m. or earlier. An online institution, on the other hand, may offer customer service later into the day. Some banks even provide 24/7 support via telephone, email, or online chat. This means that, if you need help with your online savings account you won’t have to wait until the bank opens to talk about your problem.

To learn more about online savings account in Lake City, MI, contact us at Forest Area Federal Credit Union.