What does online savings mean? Besides convenience, it can also mean higher savings! Each financial institution will offer a different online savings account rate of interest for their online savings accounts. This interest rate is the amount of interest that you will earn on the balance of your online savings account. The higher the online savings account rate the more interest you will earn and because it is compounded it will grow faster over time. Some financial institutions also offer bonus or promotional rates of interest for a limited time, so make sure that you are aware of the terms and conditions for the account before opening the account.
There are many advantages to having an online savings account;
- Online accounts offer higher interest rates than every day transaction accounts
- You can set up an automatic savings plans and have your savings transferred without lifting a finger
- There are minimal or no fees
- You don’t have to worry about running to the bank during your lunch break to access your savings
- You can manage your savings from anywhere, at any time.