If you haven’t yet opened an online bank account, now is a great time to do so. With high-interest rates leading many online banks to offer high-interest savings accounts, you can make more money on your savings than ever. But there are also many other good reasons to sign up for an online bank account.
Online banking has been around for more than 30 years now. It’s well-established and safe. But for many people, the traditional offerings of brick-and-mortar banks are more familiar—a comfortable default based on practices they grew up with. While most traditional banks offer options for online banking, purely online banks—like Grit Financial—provide many benefits that brick-and-mortar banks simply can’t. Here are four reasons it’s a good time to reap the many unique rewards of online banking.
Online banks are convenient, with options for everyone
If you struggle to find the time to get to your bank during its open hours, you’re not alone. Bankers’ hours are notoriously short. Online banks, on the other hand, offer much more convenience than the traditional Monday-Friday, 9-5 hours—they’re open 24/7, and accessible from anywhere.
In addition to accessing your account online or via an app, many online banks also tap into more traditional ATM networks to offer on-the-ground access in their regions. At Grit, for example, we offer ATM access at 55,000 locations across the US as part of Allpoint, the largest national ATM network.
Online banks offer something for everyone—including savings and checking accounts, as well as investment products. Plus, if you need to move your money into your traditional account, you can always transfer it quickly and easily.
Online banks make you more money
If you were offered 3% interest versus .06% interest, the choice would be a no-brainer, right? If you were offered no fees versus $12/month in fees, the choice would be similarly easy, correct? This is the reality with online banks: they offer you more money.
Online banks carry less overhead—with no physical buildings to lease or maintain—and they can pass along the cost savings in the form of higher interest rates and lower fees. Some banks, like Grit, even offer incentives such as cashback on purchases. In short, they’re considerably more lucrative for account holders than traditional bank accounts. Why say no to free money?
They’re less intimidating than traditional banks
Financial institutions may be one of the last vestiges of society where formality in business remains. It can legitimately be intimidating—and even disheartening—to walk into a bank full of suits and ties feeling underdressed—and under informed.
With an online bank, you’ll never even have to speak to a representative to accomplish what you need to. You don’t have to understand the stock market or economic forces to open an account or make money on your money. Plus, with a smaller menu of services to choose from, you’ll face less overwhelm when it comes to selecting accounts that match your needs. So you can get what you need quickly and efficiently, and get on with your life without the hassle of waiting in line to speak to someone.
They make a great first bank account for youth
While traditional banks typically offer youth accounts, their benefits—such as unlimited transactions and no fees—typically end when the account holder ages out. By that point, they may be too attached to the brand to switch, and will find themselves paying account fees and other fees when they’re moved over to a regular checking or savings account.
An online account remains accessible and inexpensive for all ages. Opening one when your youngster is ready to deposit their birthday money or piggy bank savings can be a great way to encourage first-time bankers to save money risk-free. Plus, online banks offer a user experience that aligns with young people’s inherent digital savviness.
Many online banks also offer virtual resources you can use to help educate your kids about financial literacy—and set them up for a lifetime of savings.
Ready to open your online checking account? Grit offers 3% APY interest and 0.5% cashback on purchases. Plus, get access to payroll advances, financial planning resources and more!