To be very clear, I am talking about banks that exist almost exclusively “online” – not banks that have a website.
Some great examples of these banks include:
I have used these type of banks for many years, and I love them!
5 Reasons I Love My Savings Accounts with Online Banks
- High Interest These banks pay interest equivalent to a 30-month CD, but none of the CD restrictions exist (early withdrawal penalty, terms, etc.) As of this writing, these accounts are paying interest between 0.75% and 0.90%. That’s WAY BETTER than the 0.01% that most local banks are paying on simple savings accounts!
- No Minimum Balance While most of these banks require a small minimum amount to open an account, they do not have a minimum balance requirement going forward.
- Sub-Accounts These banks allow you to create “named accounts” within the main account so you can better track your savings for various items. For instance, I have sub-accounts named: “Business Operating Reserves”, “Christmas”, “Vacation”, “Property Taxes”, “Life Insurance”, and “Emergency Fund” When I log in to my account, I can instantly see how much I have saved for each of these items.
- Customer Service I’ve experienced nothing but the best service from my online banks. They have to, really. After all, they don’t have local branches so the only way they can attract and retain customers is by serving each customer extremely well.
- No Fees I’ve never been charged a fee by my online bank. Not once.
- BONUS Automatic savings – you can create automatic transactions that draft money from your regular bill paying bank account on a frequency that works best for you. I have established automatic monthly drafts so I don’t have to “feel like it” to ensure I save money each month!
I encourage you to click on the links for each of the banks, choose the one that suits you best, and get your savings automated!