If you’re like most people, you get into trouble with your credit because you don’t have enough money to pay the bills on time. You may live too close to the max of your budget or have too many unexpected expenses come up. If this sounds like you, then you’ll want to look for ways to get more money and spend less. One way to do that is by switching to an online bank. Here are a few reasons why.
1. You may get a higher rate.
Online banks are trying to compete with the traditional bank, which is why they will entice customers with promises of higher rates on savings and money market accounts. In fact, some studies show that the average rate for savings accounts is quite a bit higher with online banks.
2. Online banks often charge lower fees.
Because online banks don’t have the same expenses as brick and mortar banks, they can lower their fees and still make money. They may even forego some fees in an effort to keep you happy. Even though banks are regulated, they do have the ability to charge fees for many services they provide. However, online banks may try to encourage new customers to give them a try by offering lower fees. This can include maintenance fees as well as overdraft charges and many others.
3. Online banks are easy to access.
Another benefit for online banks is they are often easy to access, which means you can pay bills online and manage your accounts faster and safer. You’ll be less apt to forget a payment or let your account go negative if you can check it out while waiting in line or sitting on the subway.
4. Online banks often have more options for ATMs.
Many online banks have joined with ATM networks all over the nation to give customers easier access to free money. With no fees, you can get cash back no matter where you are. This one benefit can save you a lot of money if you have a tendency to use cash often.
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