Earn Up to 10 Times More Interest With an Online Bank

Taking advantage of the interest rates offered by banks is a great way to increase your money with very little effort. All you have to do is keep a balance in your checking or savings account. But in order to get the most out of your money, you’ll need an account with a bank that offers a great interest rate. You can search online to discover which banks are offering the best interest rates.

Online banks tend to offer the highest interest rates. They can offer as much as 10 times the interest rate of traditional, well-known banking institutions. And that means switching to an online bank could help you earn significantly more money via interest. Search online to find online banks with high interest rates.

When you sign up with an online bank, you don’t ever have to go into a bank branch. All of your banking can be done online, right from your computer or mobile device. With all of the same features of traditional banking, online banks give you easy access to your money. And there are even more benefits to choosing an online bank. 

Discover some of the biggest benefits of online banks – including their high interest rates – right here.

Online Bank Accounts Come With Higher Interest Rates

The biggest benefit of an online bank is the higher interest rate. While not all online banks offer incredibly high interest rates, it’s common for these banks to offer rates that are higher than your average traditional bank.

On average, the best online savings accounts offer interest rates (or APYs) of approximately 1.50 percent. You can also find online checking accounts and cash management accounts from online banks that offer high interest rates, with some as high as 1.00 percent APY.

Compare that to the national average interest rate for savings accounts: 0.05 percent. Some of the biggest banks in the country offer even less, with interest rates as low as 0.01 percent. You can earn as much as 10 times the national average, or perhaps even more if you seek out the highest rates available.

Why do online banks offer more interest? It’s simple – by eliminating branches and all of the costs that come with brick-and-mortar locations, these banks have less overhead, And that means they can pass on their savings to you.

Online Banks Offer Lower Fees

Another way online banks allow you to make more money is with reduced fees. Most online banks don’t charge monthly account fees, saving you anywhere from a few dollars per month to as much as $10 per month.

Large banks and traditional brick-and-mortar banks typically charge service fees of approximately $10 per month. While these banks may waive your fees if you meet certain requirements, there are other fees to watch out for. Banks can make a lot of money off charges like overdraft fees, transfer fees, and plenty of other fees.

With an online bank, you won’t have to worry about fees like these. You can keep your money right where it belongs: in your bank account, increasing in value thanks to a solid interest rate

Online Banks Make Your Money Easily Accessible

Many people worry that switching to an online bank will be challenging. With no physical branches to visit, you might worry that you’ll have less access to your money and less ability to perform the transactions you need.

However, online banks are actually very convenient. You can conduct all of the same transactions you’d do in-person at a traditional brick-and-mortar bank. You’ll be able to make transfers between accounts, and you can even move money between different banks. You can pay bills online, access your bank account 24/7, and can even get customer service help. Some online banks even offer service 24 hours a day.

Additionally, you’ll still be able to withdraw money via ATMs. Online banks are typically part of ATM networks like Allpoint or MoneyPass, which means you can withdraw cash from thousands of ATMs at no charge. It’s also common for online banks to reimburse ATM fees if you use a non-network machine.

What could be better than access to your money and the ability to perform banking transactions any hour of the day? Online banks are incredibly convenient and make your money very accessible. 

How to Find the Best Interest Rates and Online Banks

If you want to make the switch to an online bank, there’s no better time than right now to do so. You can easily open an account and have a new account set up in no time at all. Most online banks allow you to create an account in just minutes. 

But before you pick a bank, you’ll want to take the time to do your research. Like traditional banks, online banks are different. Each online bank offers different types of accounts, with different interest rates and different features. Make sure to search online for online banks that suit your needs. Then, you’ll want to consider and compare the latest interest rates.

Searching online can make a huge difference in your money’s earning potential. For example, online banks like CIT Bank and Marcus by Goldman Sachs offer interest rates of 0.55 percent and 0.60 percent respectively on savings accounts. But Citibank offers an interest rate that’s even higher at 0.90 percent. If you consider different types of accounts, Aspiration offers the Spend and Save Cash Management Account with an impressive 1.00 percent interest rate

Search online and compare your options before moving your money. It can really pay off, helping you to make more money both now and in the future.

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Heather Fishel

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