Let’s take a look at these interest saving account examples with these Traditional Banking. US Bank .01%, Wells Fargo .01%, BOA .03%, CitiBank .08%.
Now this is a percentage your money will grow the longer you keep it in the savings account with one of these banks.
Not even worth keeping money in a savings account with these banks. To give you a more in-depth idea let’s look at this example right here let’s say you have $35,000 saved in an account with one of these traditional Banks.
Bank of America and don’t worry I got the math for you. Let’s multiply the $35,000 x 0.03% because 0.03% is the rate the money will grow up if you hold it in a savings account.
Bank of America equals $10.50.
Okay I don’t know about you but at this point why we need my money and I could digital Bank saving it all right.
Just move on to the online banks. For those who are not familiar with these things, these are the ways where you manage your accounts with a computer or mobile device.
Deposit checks transfer funds and pretty much any Bank activity you can think of all done online. Here are some examples you can look up online banks.
Now let’s start with the cons or disadvantages of being a customer of an online bank. First of all since we know everything is done online then that means there’s very limited to no person-to-person interaction. This can be tough for people who would rather have issues handled in person face-to-face and feel a lot more trust when talking to a bank official in person rather than on phone or email.
Secondly it is sold by attempting and everyone knows they’re always technical difficulties that can occur whenever we deal with the internet; which means you might have to wait longer to do any Bank business if you have no internet or your internet is somehow having technical issues.
Having another issue is that it can be a hassle to try and deposit money and lastly some online banks don’t offer checking accounts. For anyone who’s interested in having one of course moving on to the pros of online banking first of all delete it or not it’s just as fake as regular traditional Banks.
Some people shy away from online banks because of the likely hacks that could happen online, but here’s the thing: traditional banks put all your info in a computer system as well. It’s really all the same and just like the brick-and-mortar banks.
These online banks are also FDIC insured. Now what is FDIC you might ask. The FDIC is the Federal Deposit Insurance Corporation and this agency is backed by the US government which means if anything was to happen to your money in a bank would be guaranteed every single penny back as long as backed by the FDIC.
Keep in mind the average FDIC approved by a majority of banks is $250,000 which means you get up to that much back depending on how much you lost.
However there are some online banks that ensure way higher than that. I’m trying to make it so that people should know these online banks are also fdic-insured. Which means you shouldn’t worry about your money because you’re guaranteed if the worst happens.
Online banks are convenient and the internet is available 24/7 which means you can access it anytime anywhere in the world as long as you have the internet.