Pros and Cons of Online Savings Accounts

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As more banks introduce mobile-friendly features and secure access to your account, it makes sense to explore your online savings account options. Although many brick-and-mortar banks offer online savings options, you might get the best interest rates by opening an account at an online-only bank.

To maximize your contributions, always compare savings accounts to find high APY offers and the best interest rates. Here’s a closer look at the pros and cons of online savings accounts so you can find the best savings account for your hard-earned money.

Online Savings Account Pros

Although you might be concerned about online security, you’ll find that good online banks provide complete security measures, and there are several advantages to having an online savings account. Decide if these positive features outweigh the negatives:

Related: 10 Best Online Banks of 2017

Online Savings Account Cons

Online savings accounts can provide you with the best interest rates available and the convenience of 24/7 access, but they aren’t without their drawbacks. Here are the disadvantages to consider:

Make the Choice

If you don’t require in-person interactions for your banking needs an online, high interest savings account might be for you. Many online-only banks offer attractive interest rates and conveniences that enable you to securely manage your funds from a mobile device or computer.

If you prefer a more personalized banking experience, stick with a brick-and-mortar bank. You can build a relationship with your bank, deposit money easily and move money quickly to another institution. And, if you ever change your mind, you can always switch to online banking or use a combination of both banking options to fit your needs.

Up Next: Pros and Cons of Traditional Banks — How to Decide Where to Put Your Money