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Pros and Cons of Online Savings Accounts

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As 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 also offer online accounts, online-only banks have unique features you should consider.

Check out the pros and cons of online savings accounts and find the best savings account for your hard-earned money.

Online Banking vs. Traditional Banks

Traditional and online banks both offer a range of online and mobile services, so neither is immune to online security risks. A review of online banks’ security policies shows that they provide the same internet security measures as their brick-and-mortar counterparts.

With that being equal, look to other features when weighing the pros and cons of online banking to determine whether an online savings account is the best choice for you.

Advantages: Online Savings Account

Online savings accounts have several benefits over traditional bank accounts. Here are some major ones to consider:

Disadvantages: Online Savings Account

Despite online banks’ high savings account interest rates and 24/7 access, they aren’t without drawbacks. Here are the disadvantages to consider:

Consider Your Options

A high-interest online savings account might be for you if you don’t want in-person interactions for your banking needs and you want the convenience of managing your funds from a mobile device or computer. Stick with a brick-and-mortar bank if you prefer a more personalized banking experience or want services beyond deposit accounts. In the event that neither option suits all your needs, use a combination of both for a customized solution.

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

Daria Uhlig contributed to the reporting for this article.