Having an online bank account comes with a variety of benefits. You get to transact easily without having to actually visit a bank. Unlike brick and mortar banks which incur operating expenses and a fair share of overheads, online banks like Ally Bank cut down on such operating expenses. This means they can offer you good interest rates combined with efficient customer care.
Opening an online bank savings account is pretty simple and easy. You need to provide your social security number along with identity proof. Your driving license or passport will suffice. Plus, you’ll need to deposit some funds to meet the minimum balance requirements.
Why Savings Account?
Savings accounts encourage you to save some money, which can prove to be handy when you face an emergency. Plus, the funds in the savings account earn you interest as well. The interest that you earn on a savings account is certainly far more than what you earn on checking accounts. So, if you’ve earmarked funds for a specific purpose, you can open a savings account with the amount needed and allow it to accumulate interest. This means that the initial deposit plus the accrued interest will help meet your financial goals.
The accumulated balance in your savings account can bail you out in any emergency. You won’t have to resort to taking heavy interest laden loans or the charges associated with swiping your credit card.
Savings accounts are your liquid assets. While you may hold any form of high interest earning investment, how high do they rank on liquidity? Say, you’re contemplating opening a bank account in the form of a savings account or certificate of deposit. A certificate of deposit, no doubt earns a higher interest percentage, they do have a lock-in tenure. This means if you resort to premature withdrawal, you’ll have to pay a penalty.
On the other hand, savings accounts have no restrictions and you’re free to make deposits whenever you want. You can also make a specified number of withdrawals.
The most enticing feature about savings account is that they enjoy FDIC backing, making them safe.
Having an online savings account gives you the following benefits:
You enjoy the convenience of banking at any time of the day or night. Your laptop can help you access your online account, verify the balance and effect transfers.
Smartphones are common today. Banks have developed mobile friendly apps which can be downloaded to your smartphone. You can now easily check your balance, deposit checks and keep an eye on transfers, all with a simple screen swipe. In fact, you can handle all your banking tasks while on the move.
Online only banks offer high interest on savings accounts. Thanks to their less overhead costs, you earn a higher interest rate. Plus, their fees are negligible.
Go ahead and open an online savings account and reap the benefits of high interest combined with liquidity.