Why You Should Have an Online Savings Account

Why You Should Have an Online Savings Account July 31, 2013

Have you ever been in any of these situations?

  1. It’s Christmas time, and you’re wondering how you’re going to pay for all the gifts you want to buy – without going into credit card debt.
  2. It’s summer time, and you’d like to take a vacation to Hawaii. But again, you don’t want to go into debt just to enjoy it.
  3. You see a house you’d like to buy, but wonder if you have the down payment needed to get a low interest rate.

If you’ve ever been in any of these situations, then having an online savings account will definitely help you. Here are four reasons why.

1. Sub-Savings Accounts

Many online savings accounts allow you to open sub-accounts. This, in turn, let’s you save for specific purchases. For instance, are any of the following items on your wish list?

  • House
  • Car
  • Vacation
  • Wedding
  • Christmas/Birthday Gifts
  • iPad
  • Designer Jeans

If so, then you can create a sub-account and name it after the specific item you’re saving for. Now you’ve created a goal for yourself, which helps you stay focused.

As you add more money to each sub-account, you’ll get excited as you see yourself getting closer to achieving your goal.

2. Separation from Your Checking Account

How many times have you wanted to save for a purchase, but you gave in to temptation and spent the money instead?

If your money stays in your checking account, it’s much easier to get your hands on it. This, in turn, makes it easier for you to justify spending it.

If, however, your money was in a separate savings account, it’d be a bit harder to get – which is a good thing. You see, by placing small barriers between you and your money, you’re more likely to be successful in saving up all the money you need.

Then you can go ahead and buy that item you’ve been saving for – all without going into debt or feeling guilty.

3. Automatic Transfers

Have you ever thought that it would take too much work to save for a goal? That the process of transferring money would be too hard?

If so, then there’s good news. It’s not hard at all.

With an online savings account, you can set up an automatic transfer of your money from your checking account to your savings account. That way, you won’t need to do any work, and yet your savings account will still grow. It’s effortless and effective.

4. No Minimums and Fees

If you open up a savings account at a traditional bank, they may charge you a monthly fee if you don’t meet their minimum requirements.

Most online savings accounts, however, don’t have this restriction. That means you can open a new account immediately with just a few dollars, and keep it open without worrying about being penalized with a large fee.

What other benefits to having an online savings account can you think of? Leave a comment!

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