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

Picture of ChatGPT 3.5 - Fact-checked and edited by Curt Fournier

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.

 

The author generated this text in part with ChatGPT3.5, OpenAI’s large-scale language-generation model. Upon generating draft language, the author reviewed, edited, and revised the language to their own liking and takes ultimate responsibility for the content of this publication. All facts represented in the article were accurate at the time of publication. This article does not represent financial advice or recommendations. The content is intended for informational purposes only, and readers should seek professional advice before acting on it.
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