Online Banks & Savings - Securing Exponential Growth

Online bank savings typically provide higher returns than traditional savings accounts. The benefit of the savings amount can be up to 3 or 4 points. Online bank institutions offered easy access to your money and transfers. Money transfers were easily executed between online institutions and traditional checking account banks. Some banks even offered an ATM card with their online accounts, meaning you could get your money out at anytime.

Recently, traditional banks offered a interest of one half a percent annual yield on interest rates if you had a common savings account with them. At the same time, many banks started offering online savings accounts as a safe, secure alternative that had much higher interest rates and yielded actual cash for money saved on deposit. A common online savings apy for these accounts was at least four per cent, and some got as high as six percent.

Online banks also allow consumers to view statements quickly and provide customer service representatives to help answer any questions.

APY Rates

Online savings annual percentage yield, or apy, rates were exponentially higher than anything you could get at a traditional savings account. As long as the investment is within the U.S. banks, the FDIC offers their insurance protection as well. That level of protection gives those who open a savings account a piece of mind that they normally would not have with an account outside the U.S. The FDIC insures up to $250,0000.

Though the savings rates are lowered, the online savings apy on many accounts still secures exponential growth over a traditional savings account. Many traditional savings accounts now have an annual percentage yield of less than .05%. With rates that low, it can take months to generate any profit.

In the online world, however, many rates are still comfortably above 1%, and some are as high as 2%. With about $20,000 on deposit in an online savings account, an amount that is a good savings for a rainy day, you can still make about $30 per month versus the 30 cents or less per month in a traditional account.

In a market where exponential growth is rare online savings accounts are ways to secure that exponential growth. This is as close to a sure thing as one can get in this economic climate.

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