Online banks are cropping up all over the web, but have you stopped to think about what an online account could do for you? Here are several frugal benefits to think about:
1. Higher Interest Rates
Online banks don't have to bear the expense of brick-and-mortar locations, which means they can pass the savings on to you in the form of higher interest rates. Plant your money in an online account, and it'll grow faster, guaranteed.2. Auto-drafts
Do you have a hard time remembering to move money over to your savings account? Set up auto-draft on an online account, and you'll probably even forget your saving.3. No fees
Banking fees don't sit well with the frugal mindset, and when you bank online you don't have to deal with them. Need a checking account? A savings account? Set them up, and say, "Skip the fees, please."4. No Minimums
Many traditional banks require you to keep a minimum balance to avoid fees – far from a convenient feature. Online banks do away with this hassle by offering no-minimum-required accounts. Put as much or as little as you want into your accounts, and you won't hear any complaints from your bank.5. Less Access
It's easy to spend when you know you have money in the bank, but not as easy when you know your money is sitting in an online account. Since it typically takes 2-3 business days to transfer funds from an online account to a brick-and-mortar account, you'll think twice about spending your money.6. Sales
Ever heard of a bank holding a sale? Well, online banks do it all the time. Sign up for an account with an online bank, and periodically you’ll receive e-mails offering increased interest rates for a limited time. Imagine, a sale where you actually make money!
7. Incentives
Sure, your neighborhood bank may offer you a cooler or some other trinket when you open an account, but when's the last time they offered you cold-hard cash? Turn to the web and you'll find banks offering you money for opening an account, and even money for referring your friends. Who can resist free money?
