An online savings account can be a great way to save. Most of us probably do some form of banking online nowadays so, it does seem sensible to manage our savings electronically too. If you are deciding whether you want to save online you will obviously want to find out more about the many benefits to not saving with a traditional bricks and mortar bank. These 7 reasons to have an online savings account may not apply to everybody, but everybody should be able to find something relevant to them and their situation.
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1. Real Life Saving Sucks!
This is one of those sad facts of life. It seems like it was only yesterday when banks were actively encouraging people to hand their money over the counter. But it’s not the case anymore. Now banks are encouraging you to save online because it’s easier for them, and come to think of it it’s easier for you too. An online savings account is quite simply, so much more convenient.
2. Better Interest Rates
Come to think of it, in real life you will generally find that savings accounts have quite low interest rates compared to some of the better online savings accounts. This is part of the strategy banks are using to encourage people to look into an online savings account, and it’s certainly a compelling reason to do so. So, save online if you want to make the most out of your money.
Frequently asked questions
3. Auto Savings
What are automatic savings you might be asking? Well if you decide to save online then banks will now allow you to set up an automatic saving system. This means it will pull a certain amount out of another account, for example the one where your pay checks go, at specified times. This doesn’t restrict you from topping up your savings amount at any time. With an online savings account you can see an ‘almost real-time’ balance so any excess cash can be moved, whenever.
4. Pay the Bills
With an online savings account you can utilize their automatic systems. In a similar vein as the auto savings function, now you can pay your bills automatically. This can be especially beneficial if you are never sure exactly how much you will have in your checking account at any one time. Simply set up the service and the bills will be paid out of your savings, and even if it isn’t used it’s still gaining interest.
5. Multiple Accounts
Many banks are now allowing their customers to set up multiple accounts online by using the same customer number. This can be great for those people who want to stay organized at all times because if you want to save for a car, a wedding, and a child then it’s not a good idea to have everything stuck in the same account.
6. Transfer Time
If you want to transfer any of your money from your savings account to your checking account then it will happen instantaneously, unless of course you are using a high interest bearing savings account and the accounts are at the same bank.
7. Emergency Savings
Having an online account to save money with is a great place to put any emergency savings you might have. Since you can’t just take the money out of an ATM whenever you like, it means that this is a secure location for any emergency savings.
An online savings account can be a great way to save because it’s safe from impulse buys but accessible for whenever you need it. This is the perfect balance which puts people who save online in a good financial position. These reasons to have an online savings account make sound financial management sense.
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