You may have noticed that most things are being digitized and savings accounts are no exception. So before you rush over to your nearest bank to open a savings account, you may want to consider opening one that is based online.
There are many benefits to an online savings accounts such as higher interest rates, lower fees, and easy access to your money. So if you want to learn more about benefits of an online savings accounts then keep on reading!
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Earn Higher Interest Rates
There are many reasons as to why an online bank could offer you a better rate than your local bank. Due to the fact that there is no physical location, it allows them to lessen their expenses for things such as staff, rent, electricity, etc.
However, this is not the case for every online bank, but if you were to do some research, you’ll notice that the top rates are based online. So make sure you know the Difference between APY & Interest Rates!
 Open a Discover® Online Savings Account for all these features: • Earn $200/$150 Bonus with promo code LOP325 by 9/11/2025 • Earn high interest rate of 3.60% APY • No minimum opening deposit, no minimum balance requirement, and now no fees • Interest on Discover Online Savings Accounts is compounded daily and credited monthly • Manage your account online or with the Discover mobile app • FDIC insurance up to $250,000 • See advertiser website for full details To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code LOP325 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200. What to know: Offer not valid for existing or prior Discover savings customers. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 09/11/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding, see FAQs on Discover.com/Bank. |
Lower Fees
In general, Online Banks typically charge lower fees for everything whether that’s their checking overdraft fees, investment account fees, or monthly maintenance fees. According to Reuters, in 2009 alone, banks earned over $30 billion in overdraft fees.
However, an online bank may waive overdraft fees entirely, charging only interest if you overdraft your account. Due to the fact that they don’t have a physical branch to account for, online banks will often pick up the charges if you use another banks’ ATMs, which in return will save you on another common bank fee. If you’re interested, learn How to Switch Banks.
Easily Access Your Money
Now we all know that the point in having a Savings Account is to save money, but you have to account for the unexpected. For instance, sometimes an emergency will pop up and you’ll need to dip into your savings. And being able to access your money during that time is crucial.
A benefit of an online savings account is that you don’t have to walk into a branch to retrieve your money. Everything you need is accessible by the touch of your fingertips anytime, anywhere. That is a huge benefit of having an online savings account because most of us are already glued to our mobile devices or are online. Also, make sure to check out great Ways to Get the Most Out of Your Bank.
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Set Up Auto Deposits To Build Your Savings
Creating a habit to constantly and consistently deposit money into your savings account may be hard, but it doesn’t have to be that way. A benefit of an online savings account is that you don’t have to put any effort into remembering to deposit money. With an online savings account, you’re able to set up a weekly or monthly automatic deposit from your checking account into your online savings account.
This method allows you to take the temptation of spending unnecessary amounts of money and over time you’ll notice that you’ve accumulated a large amount. The best part about this is that the deposit can be as little or large as you want! So brush up on Ways To Deposit Cash Into An Online Bank Account!
Bottom Line
There are a multitude of benefits to having an online savings account such as higher interest rates, lower fees, accessibility to your money, and convenient deposits. Not only is it extremely convenient, but you’ll find yourself effortlessly incurring money.
So once you’ve done your research on which online bank is best suited for you, open it, and let us know how it went for you. We would love to know about your experiences and how it went for you. Also, if you are not interested or looking for other alternative options, find more of the Best Bank Rates from our list of nationwide savings accounts!
 | Western Alliance Bank High-Yield Savings Premier: Available nationwide, the Western Alliance Bank High-Yield Savings Premier account offers 4.30% APY. FDIC insured. Open your account online in five minutes or less. No account activity or maintenance fees. Learn More---Review |
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