The benefits of an Online Savings Account:
Opening an online savings account is a great way to earn some extra money on your cash balances. Most of these account are designed to “piggy-back” onto your existing checking accounts. If you don’t need the money immediately, you can transfer the money into the savings account, and when you do need it, you can transfer it right back. Sometimes you can even pay bills directly from the account.
You've probably noticed that if you have a traditional savings account with a regular bank, you are not earning much interest. Indeed, many regular online savings accounts have annual percentage yields of less than one percent. You can quadruple your yield on a savings account simply by switching to an online savings account.
Advantages of an Online Savings Account:
There are many advantages to having an online savings account. The biggest advantage is having a yield of between 4.5 and 5 percent on your money. This is a much better return than your traditional savings account. And, depending on your other investments, 5 percent really isn't too far behind yields on value stocks, bonds and money market investments.
Another advantage is the fact that your money is a little bit harder to get at. It's still liquid, as a savings account should be, but you still have to wait a couple days for money transfers (although some banks offer ATM cards that give you access as soon as the money is in the account). This means that before you can withdraw from your online savings account, you need to stop and think about whether you need to dip into your savings.
Want to compare Savings Accounts? Click the link below:
Top Online Savings Accounts
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The benefits of an Online Checking Account:
Checking accounts are the place to keep the money you'll be using soon. If you use a checking account, you can easily buy things without carrying around cash. Whether you have a debit card linked to your checking account or you write paper checks, these accounts come in handy.
Advantages of an Online Checking Account:
•Free initial check order
•Free unlimited check writing
•Free ATM or Debit Card
•Free unlimited online account access
•Free unlimited online telephone account access
Interest Checking Accounts:
If you are able to maintain a bit more of a balance, online banks offer easy access to checking accounts that are not only free but earn interest, getting much more efficient use of your money. In all cases you will need to carry a minimum balance, but instead of your checking account--your "working capital"--sitting there earning nothing, you can get a tangible (and save-able) return on your money. Some banks will combine both checking and savings accounts giving you the advantage of interest and check writing ability.
Want to compare Checking Accounts? Click the link below:
Top Online Checking Accounts
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