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4 benefits of online savings accounts

Accounts offered by online banks tend to have the most competitive terms and offer attractive perks. Getty Images/iStockphoto

If you're not saving money in a high-yield savings account, you're missing out. High-yield accounts offer interest rates up to 12 times higher than regular savings accounts, so your money grows faster. That's valuable at any time, but especially when the economy is uncertain, as it's been for the past few years.

When it comes to high-yield savings accounts, some earn more interest than others. Accounts offered by online banks tend to have the most competitive terms and offer attractive perks. Whether you're looking to open your first high-yield savings account or find one with better features than you currently have, it's important to know why online savings accounts are worth considering.

Find out how much more you could be earning by viewing current savings rates now.

4 benefits of online savings accounts

High-yield savings accounts are great, but online high-yield savings accounts are even better. Here's why.

1. High interest rates

One of the biggest benefits of online savings accounts is that they typically offer higher interest rates than traditional savings accounts. That's because online banks don't have the overhead costs associated with maintaining physical branches, and they can pass on the savings to customers in the form of higher interest rates.

Boost your savings with one of these savings accounts.

2. Low (or no) fees

Another significant benefit of online savings accounts is that they have little to no fees. Most online banks don't have monthly maintenance fees, minimum balance requirements or withdrawal restrictions. You can withdraw or transfer your money at any time without penalty, making it easy to access your funds when you need them and keep more of the interest you earn.

3. Convenience

Online savings accounts are incredibly convenient. There's no need to visit a branch or wait in line for a teller to assist you. You can access your account 24/7 from anywhere with an internet connection to check your balance, transfer funds and set up automatic bill pay. 

Many online banks also offer mobile apps that allow you to manage your account on the go, making it easy to stay on top of your finances. And if you need to withdraw money from your account, many online banks have partnerships with ATM networks and frequently don't charge fees to use them.

4. Security

Like traditional savings accounts, online savings accounts are protected by federal deposit insurance when held at an FDIC-insured bank. That means that your money is safe up to $250,000 per account per bank in the event of a bank failure.

Online banks also take security seriously, using advanced encryption technologies and two-factor authentication to protect your account information and prevent unauthorized access.

Compare your savings account options here to get started.

The bottom line

Online savings accounts provide many benefits to consumers, including higher interest rates, convenient access to funds and low to no fees. Additionally, they're FDIC insured and often used advanced security technology, making them a safe place to save your money. Before opening an account, compare different online savings accounts to find the one that offers the best rates and features for your needs. You have plenty of options to choose from and banks are eager to compete for your business.

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