Friday, October 1, 2010

Guest Post: Why You Should Have An Online Savings Account

The whole idea of online bank may appear quite eerie to many people. What is an online bank? How can a bank operate without any physical entity or even an ATM? Such questions cross our minds when we discuss stuff like online bank. Well, an online bank is a banking institution that operates only on the internet; you need to transact either on the internet or over telephone.

The older generation accustomed to the safety vaults of normal banks may cast skeptical glances at it. But, the concept of online banks is gradually becoming a great hit among the net-savvy youngsters. If the absence of a physical bank location is a reason not to put faith in online banks, then there are plenty of reasons why you should have a savings account in an online bank. Wondering how? Then take a look at the following:
  • Higher interest rates: Having a savings account in an online bank can be quite lucrative. They usually offer higher rates of interest than the normal banks. Online banks can afford to give your more interest because they do not involve added costs of maintaining branches and teller facilities. The lower overall operational costs allow the online banks to offer you some tempting interest rates.
  • User friendly websites: Online banks have very sophisticated websites, where you can perform all the banking transactions easily. They usually get upgraded and user-friendly features built into the website to help you pay your bills, make instant or scheduled money transfers, change your account information and also create or close accounts as simply as possible. The more features they can incorporate, the fewer staffs they require to handle telephonic operations.
  • Lower charges: Most online banks charge you no maintenance fees and minimum balance fee for your accounts. Some banks even do not charge anything for opening an account. So, banking gets really inexpensive and super easy with online banks.
  • Your money is safe: The absence of a physical entity should not make you feel that online banks are unsafe. In fact online banks are Federal Deposit Insurance Corporation (FDIC) insured, which means your money is in safe hands. Online banks are as safe as their brick and mortar counterpart. While in other investment options you need to take higher risks for higher profits, online banks will spare you such risks. Moreover, the FDIC is great assurance for the consumers.
  • Separate savings from expenses: If you are one of those kinds that do not want savings accounts to be easily accessible lest they end up spending more, then an online bank is just your cup of tea. Since online accounts provide no teller or ATM facility, your savings are not available at your fingers. And this could prove a great way to keep your savings from getting encroached by your spending sprees.
  • Automate your savings: Online savings account is a great way to automate your savings. You can have a certain amount automatically deposited into your online account from an attached account regularly. Recurring savings thus becomes quite hassle-free with online banks.
  • Time Saving: The best part of an online bank is that it is superb time saving banking option that allows transactions in as less time as possible. You can open an account and get your transactions performed within a few minutes.

Now if that seems convincing and you are already thinking of opening an online savings account, then you are just a click away from it. All you need to do is search online to find out an online bank that best suits your circumstances and get on with an online savings account. And then savings will be more fun, profitable, easy, secured and superbly time-saving!

About the Author
This guest post was written by "Jack Reed". He writes on various financial topics with a special focus on bankruptcy. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.