Banks have made good use of the advancement of technology. In the advent of the internet, banks have made savings accounts a lot more convenient and transparent. The benefits that online savings accounts bring are priceless. Here are some of the biggest benefits that online savings accounts bring.
1.) Transparency. With an online savings account, you can see your savings real time. Banks will give you a personalized online account wherein you can view your account and every detail of it. Some banks may even add other features wherein you can customize your account and make it work the way you want it to be.
2.) Ease of transaction. Since almost everything is connected to the internet these days, having an online savings account can make you make transactions easily and faster. Having an online savings account can make you pay the bills online as well as other transactions. It will automatically deduct from your account and its just like getting money straight from your pocket.
3.) Liquidity. The funds that you have in your online savings account can also be withdrawn easily through ATMs or over the counter thus giving you more options on how to cash in or how to use your money.
4.) Safety. Having an online savings account is nothing more than having a traditional savings account. It is secured in the bank and is insured if something may happen to the bank as well. However, there are some concerns about going online. Banks give internet security an utmost concern because most of their transactions are done online and needs some wired transfer. The security that banks give are at their highest and rest assured that your, and other account holders as well, money and savings are safe.
5.) Higher interest rates. Some banks may give higher interest rates for online savings accounts. Some traditional savings accounts may only give up to 1% interest per year while some online savings accounts can give more than 1% annually. Interest rates are given by the banks to the people who give them business and that is why higher interest rates are normally given to those who go online because they can make more money with the internet.
6.) Access to different sites. Since many transactions are done online today, having an online savings account gives you a gateway to different sites that provide services or needs online payment for ease and convenience. Credit cards may be a good option but considering the interest rates that credit cards have, an online savings account is much better. Sites such as eBay and Amazon requires payments to be done online and having an online savings account is by far the best choice.