Why Open a Savings Account Online? Why Do Online Banks Pay Higher Interest Rates?
I would hope the answer to the first question should be now obvious. An online savings account will pay higher interest rates, hopefully at or above the inflation rate at any given time. This will help your emergency cash tread water as time passes. The answer to the second question is less obvious, but can be discussed without getting too heavily buried by economics and finance jargon. The simple answer is that online banks specialize in understanding and managing deposit accounts like yours and mine. The long answer… well, that’s filled with economics and financial jargon like economies of scale, low overhead, and stuff like that – probably stuff that isn’t going to enhance your understanding of banking – and this article is more concerned with your savings and not bank earnings anyway. Why Does Buying Power Matter When It Comes to Opening a Savings Account Online Buying power is EVERYTHING in economics. If you are saving for a rainy day, lets say… maybe you are concerned about winte
