Online Savings Accounts – 5 Reasons You Should Have One
April 19th, 2010 | 
Author: 
You have heard of online savings accounts haven’t you? These are accounts where the transactions take place entirely online rather than at a brick-and-mortar bank location. Why would you want to have one of these accounts? Here are 5 reasons:
1. Higher Interest Rates – Because an online bank doesn’t have the expense of running a bank location, with tellers and such, they have more capital to use to offer better interest rates for their customers. This means your money compounds and grows faster than at a traditional bank.
2. Automatic Transfers – Most online savings accounts provide automatic setups where you determine a set amount you want to contribute on a set timetable (daily, weekly, monthly). This puts savings out of mind and makes sure you actually contribute to savings (rather than spend what you have and leave you nothing to contribute).
3. Setting up sub-accounts/Savings goals – Another benefit of most online accounts is the ability to set up sub-accounts or different savings goals. You can create different accounts for different goals to help you organize your savings better. Want a Christmas fund? Set up an account for it and for a bonus create an automatic savings so you have the money in your budget.
4. Great Customer Service – I’ve found that online savings accounts tend to have great customer service when needed. Because online banks want your business they tend to make sure they have great customer service to keep you a happy customer. You don’t need to be face-to-face with someone in order to have great service!
5. Excellent Place for Emergency Savings – It’s important to have emergency savings set aside for the times life throws you a curve ball and you need money! But where to put the savings? It has to be someplace safe and with easy access. Online savings accounts provide this as well as offer up interest for your savings and automatic transfers to help grow your savings.
As you can see, an online savings account can be a great tool in your personal finance!
Posted in Online Savings | 
Tags: Bonus, Brick And Mortar, Christmas Fund, Compounds, Easy Access, Great Customer Service, Interest Rates, Online Banks