Why You Should Get An Online Banking Account

Banking accounts are a necessary tool for financial safety and independence. They are a secure and simple way to save and store your money. However, not all bank accounts are equal, and you should be aware of your options to better maximize your finances.

Here’s what you should know:

All Savings accounts are not made equal

Every bank has its own benefits associated with their accounts. This can vary from fee-free accounts, free ATM withdrawals, 24/7 customer support, etc. While most banks offer all the basics, like a savings account, checking account, CD’s, and more, not all banks have the same benefits when it comes to using them.

When looking around to open a bank account, you should be aware of some of the differences that could help you better your finances. Some of the best options don’t come from the big banks that everyone thinks about, but rather, online banks who offer all their services virtually, cutting out the clutter and passing on those savings to you.

So what are these perks?

Checking Accounts

The most used kind of banking account is the checking account. Almost every needs a checking account to be paid and purchase items. It is the essential bank account in today’s society. However, many banks have taken advantage of this by charging fees or imposing minimum account balances on their customers.

This can be a pain to work with and can add up over time to erode your hard earned money away. Fortunately, most online banks offer alternatives to this, with free checking accounts with no minimum balances and no fees. Let’s compare some accounts available: Ally Bank & Wells Fargo.

Wells Fargo Checking

  • Minimum $1,500 daily balance or qualifying $500 deposit per billing cycle
  • $7 monthly fee is above requirements not met
  • Minimum deposit amount: $50
  • Non-Wells Fargo ATM fee: $2.50
  • .01% APY

Ally Bank Checking

  • No Minimum Balance
  • No monthly maintenance fees
  • ATM reimbursement up to $10 for non-Ally ATM
  • .6% APY

As you can see above, Ally Bank, the online banks, beats Wells Fargo on all the basics, with $0 fees for the categories listed. This can end up saving you, the customer, a lot of money in the long run.

But what about saving options?

Savings Accounts

While a checking account is the most used account, many people also open a savings account with their bank. Savings accounts are an excellent way to securely store your money and earn some interest on top. Although savings accounts are mostly used passively, there are still ways to maximize your money from different savings.

Again, internet based banks usually beat out their brick-and-mortar big banks when it comes to saving your money. Let’s look at two different savings accounts offered from Discover Bank & Bank of America.

Bank of America Savings

  • Minimum $100 opening deposit
  • $500 minimum balance
  • $8 monthly fee for balances <$500.
  • .03% APY

Discover Savings

  • No minimum opening deposit
  • No Minimum balance
  • No monthly fee
  • 1.75% APY

Looking at the comparison above, you can see that Discover’s savings account beats out Bank of America in the basic account fees, and offers much higher interest rates. To put the advantage into perspective, if you used a Discover Savings option over Bank of America, you would earn $261.75 annually vs $4.50 annually on a $15,000 deposit.

Using a bank account, both the consumer and the bank should benefit, not just the bank. That is why is in a consumer’s interest to shop around for the best bank account that suites their needs and wants.

So the next time you think about opening a new bank account, or are looking to move banks, be sure to research online banking services as well as your typical brick-and-mortar and see if an online bank account could work for you. If you’ve found yourself low on money to start a bank account, check out some personal loan options to get yourself back on track.

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