Online banks offer a great way to save money. However, that doesn’t fully encompass its advantages – in other words, online banks aren’t just a way to conveniently store your money… they offer respectable products. From checking and savings, to IRA’s, great credit card rates, and home loans, online banks can get the job done!
The Financial Product(s) Offered
Don’t worry about matters of convenience – or lack thereof – at the moment. For right now, let us examine how online banks can offer a rather strong product, perhaps easily better than your bank.
How about 0.85% on a checking account? Can your bank do that? According to Bargaineering.com and the website of ING Bank, no less than four online banks do this with no fees or minimums: American Express Bank (1.00%), Flagstar Direct (0.95%), ING (0.90%), Ally Bank (0.89%). Add in others (Discover at 1.00% for $500 open minimum balance) and you have plenty of options.
For your average traditional bank, this isn’t exactly possible. There are several traditional banks that off an interest rate on their high-interest accounts, money market accounts, and furthermore. However, plenty of them offer these products that are combined with an array of fees, if not placed with relatively lower interest rates.
Of course, checking/savings accounts do not encompass the totality of offerings from online banks. Online banking institutions offer CDs and other ways to save money and attack your budget. Perhaps it’s time to consider an online bank for your financial needs.
Online Banks: Banking Convenience Epitomized
Unless you love going to your bank, there is a strong advantage that is given to online banks. After all, cutting down on your trips to any bank likely results in more time and less stress; few people consider the errand of going to a bank present (and perhaps neutral, for that matter).
Traditional banks are taking note of this. For instance, there are plenty of ways in which you can take advantage of banking online, in any capacity:
- Log into your online banking environment: you can pay bills, download your financial history, and communicate with your bank
- Check the Internet for rates at your bank and others, for loans, credit cards, and much more
- Download an app from a major bank to take advantage of mobile banking – certainly the latest “big thing” to hit the world of banking. If you’re trying to stick to a budget, online apps available from many online banks can help you meet your goals!
While traditional banks are excelling in online products, the online bank will still have much to offer. One big reason is seen: they complement each other so well. You can easily take advantage of an online bank in conjunction with your “normal” bank. Add in the app for mobile banking and you might only need to go to a bank once a year.
Using an online bank is extremely simple. It is no less complicated than logging into your online banking system at your bank. With plenty of options for versatility (such as automated savings plans and more), it is no surprise that online banks are becoming an extremely popular choice.
Is it time for you to start banking online? Compare banks and see what can offer you maximum value.
This article is a guest post written for Thriftability by Brian @ Banks in Australia, a personal finance site devoted to bringing you the best in world-wide banking tips! Thriftability welcomes your comments — leave one below!
