It might be time for you to review your banking options. Opening a new online bank account could save you money and offer you benefits that you didn’t know existed.
Maintenance charges, overdraft fees, and ATM fees could cost you hundreds of dollars every year. Moreover, low interest rates, poor customer service, and lack of useful features might make switching to a new bank even more appealing.
From sign-up bonuses to high interest rates, here are a few of the reasons you should consider opening an online bank account.
Sign-Up Bonuses
One immediate benefit of signing up for a new bank account is the new customer promotions.
Banks often run promotions to encourage new clients to open a checking account. Typically, these promotions entice new clients with cash in amounts ranging from $100 to $750.
As banks stand to gain a lot by generating new customers, they are able to easily afford these upfront bonuses.
In addition to a number of other benefits, signing up for an online bank account could get you some extra cash.
High Interest Savings
Big banks often offer incredibly low interest rates on their savings accounts.
Bank of America, for example, offers a meager 0.03% APY on their standard savings account.
Alternatively, Ally offers customers 2.20% APY on their savings account, regardless of balance. Depending on your savings balance, this increase in interest could net you hundreds of extra dollars (or more) per year. This is one of the reasons Ally ranks among the best online bank accounts available.
Even if you’re happy with your current checking account, it might make sense to open a savings account at a different bank to take advantage of higher interest rates.
Interest Checking
Interest on savings accounts is standard. However, some banks also offer interest on your checking account balance.
Capital One 360 is one such institution that offers interest on your checking as well as savings. Starting with 0.2% APY for balances under $50,000 and up to 1% APY for balances over $100,000, clients can earn cash just by having money in the bank.
While checking account interest rates are lower than many savings account interest rates, it wouldn’t hurt you to switch over to an interest checking account.
Zero Fees
If you’re still paying fees for your bank account, it’s definitely time to consider switching.
So many banks offer completely fee-free accounts that there is no reason to have an account that charges maintenance, withdrawal, and overdraft fees.
It might not seem like a big deal to pay a few bucks a month for your account, but that adds up over time. Banking fees are simply a waste of money.
Many banks even offer compensation for out-of-network ATM fees, so you don’t have to worry about finding your bank’s ATM.
Don’t let big banks steal your money through fees. Open a fee-free checking and savings account.
Theft Protection
Whether you’ve lost your debit card or someone has stolen it, you won’t have to worry. Many modern online banks offer the ability to easily control your debit card activity.
If you aren’t able to find your card, simply open your banking app and freeze it. This will prevent anyone from using the card until you reactivate it.
With modern theft and fraud protection features, you don’t have to worry about your money being stolen.
If you’re like most people, you’ve probably been with the same bank for quite a while. You might not see any reason to switch.
However, traditional banks often don’t have your best interest in mind. Switching to a new bank could save you money on fees, give you higher interest rates, and protect you from fraud.
