Online Checking Account Interest Rates are Significantly Higher?

Answer 1

Any consumer that strives to be responsible when managing their money realizes the need for a bank account that will help support their financial goals, but most individuals have become increasingly frustrated with ridiculously low interest rates and high service charges or fees. Instead of simply accepting the level of serivce that traditional brick and mortar banks are willing to provide, it is important to note that online banking opportunities can prove to be an excellent alternative. The online checking account interest rates are often significantly higher, and many of the routine fees are lower or simply do not exist at all. Many consumers are fairly apprehensive when it comes to banking online, so it is advisable to review the following statements before deciding not to move any accounts to the virtual world.

The online checking account interest rate offers that sound so appealing are associated with banks that are protected by the FDIC in the same way that traditional financial institutions are. In fact, some of the online accounts are even provided by an organization that also offers traditional banking services. As long as a consumer verifies that the online bank is backed by a legitimate organization that is recognized by the United States government, any funds invested or deposited will be completely safe.

The online checking account interest rates are not a scam and are not impossible to obtain, but it may be necessary to meet several conditions. Some of the offers will require that an account holder maintains a certain minimum balance in order to avoid any service charges and earn the amount of interest promised. Consumers must ensure that they understand all of the terms and conditions that are associated with any type of bank account, including the ones online.

A common misconception is that online checking accounts make it difficult for consumers to access their money, but most virtual financial institutions will allow their clients to utilize any ATM to make a withdrawal. In fact, some of the online banks will even refund alimited number of ATM-related service charges that are imposed by the bank that services the automated teller machine. Individuals therefore have the ability to access cash when necessary, and any larger withdrawals can be completed within a couple days when needed. Banking online is proving to be the best way to avoid major fees and earn online checking account interest rates that are much higher than the offerings of the traditional counterparts.