For todayâ€™s typical bank user, they employ the services of a bank where they can either go into the building to carry out their banking needs, or alternately they can utilize the drive through services. For a simple savings account, this can add additional bank fees to cover the costs of the building and employees required to staff the location. Online savings accounts generally offer the same services with little to no additional cost to the customer. This can entice account owners to seek out online banks that offer reduced fee structures.
Many traditional banks have requirements around minimum balances that carry fees; if a customerâ€™s savings account does not stay above that limit, the bank will then deduct the amount of the fee from the account. This can be a disadvantage for customers with lower balances. In contrast, many online savings accounts remove these limits, and allow customers to carry any balance with either low fees or completely fee free. These accounts are desirable to customers who carry low savings balances but do not want to be charged a monthly fee for the account. These accounts are also available 24 hours a day, seven days a week, and can be utilized at the customerâ€™s convenience.
Online bill pay is another service that many banks are providing to customers to help make the banking experience easier. There are still traditional banks that charge consumers for the ability to pay bills or transfer money between accounts. Online savings accounts generally come with the ability to pay bills online without any additional fees. The consumer is able to log into their accounts and make payments or transfers without expensive monthly fees that would occur in a more traditional banking situation.
In order to find an account with reduced banking fees, customers are increasingly turning to online savings accounts to host their money. Many banks will offer an option for an online only account that gives the customer the ability to manage their bank accounts from their computers with a private user name and password log in to the bankâ€™s website. Some institutions are completely online without a physical location for a customer to visit; for this type of bank, all transactions are handled either online or by phone, cutting the costs of staffing and real estate sharply.
When comparing an online savings account versus a traditional banking experience, customers have to balance their needs against the bank fees charged to meet those needs. Adding up the monthly costs of account balance requirements, along with the convenience of instant access to account balances and other valuable account information, can tip the balance towards an online banking experience.