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Why an Online-Only Bank May Be Best For a High-Yield Savings Account

Selecting an online-only bank for a high-yield savings account may help you get the best returns, while maximizing convenience.

Key Topics:

High Interest Rates:
  • Online banks excel in offering competitive interest rates for high-yield savings accounts, because they do not need to cover the overhead of operating brick-and-mortar locations.
Low Fees and Minimums:
  • In many cases, online banks need to differentiate themselves from larger, established banks. They will sometimes be willing to take less profit on a per-customer level to drive customer growth, passing on lower fees and minimums to account holders, optimizing your returns.
FDIC / NCUA Insurance and Fortified Security Measures:
  • FDIC and NCUA deposit insurance ensures the safety of your funds up to the $250,000 maximum.
  • Some online banks also have invested into cutting-edge security measures for authentication and encryption, further differentiating them from legacy, established competitors.
Streamlined and Efficient User Experience:
  • Most online banks have invested heavily into easily accessible electronic statements, timely e-notifications, and seamless account transfers to drive to a better customer experience.
  • In some cases, online-only banks have newer and much more streamlined mobile device experiences. Our reviewers take time and care to ensure you know the look and feel of each bank.

Conclusion:

The decision to try an online bank can be a game-changer. With competitive interest rates, cost efficiency, and cutting-edge technology, online banks can provide an edge in maximizing returns on your savings.