If You Need a Better Return
Since the beginning of online banking, the main attraction has been the rate (APY). Online banking accounts typically pay a higher rate of interest than you can get from a brick and mortar competitor. If you’re just looking for an online savings account, here are some good places to start:
If You Need Online Checking
Savings accounts are great, but some people want to write checks. A number of online bank accounts offer free checking -- and some even pay a high yield on your checking account balance. To integrate checking into your online banking experience, try some of the following:
- Capital One 360 (pays interest)
- Link Your Brick & Mortar Account to an Online Savings Account
- Ally Bank (pays interest)
Adding Extra (Free) Features
Online banking is all about making life easy. You can use technology to automate tedious tasks and save time for the more important things. As an added benefit, you often experience fewer errors and have an easier time of tracking things. Consider these tools to make your life easier:Financial Software site.
Staying Safe Online
Online banking makes our lives easier. However, it also makes a few things easier for criminals. For the most part, online banking actually makes you safer -- the U.S. Government encourages everybody to receive Social Security via direct deposit, for example. To keep your money and your account safe, it’s good to know the basics of online banking security.
While you can enjoy better returns and more convenience, online banking isn’t perfect. Set your expectations on what you have to give up in order to enjoy the benefits of online banking.