High-Yield Savings and Online Banking: Competition Benefits US Customers

Note: I am not a financial advisor. This is not to be considered financial advice.

The way people save money is beginning to change thanks to the emergence of new technologies, particularly with online banking companies serving customers in the United States. Here’s why traditional banks are poor choices for savers and why online banks that offer high-yield savings accounts are positive for the future of money.

Issues With Traditional Banks and Credit Unions

Minimum Balance Requirements and Unimpressive Interest Rates

The idea of signing up for a new account at a bank usually comes with a seemingly decent perk: bonus money. For example, Chase offers $200 to new customers who open up a checking account. It offers an additional $150 to customers who open up a savings account and deposit $10,000 or more within the first 20 business days. The total amount of $350 is appealing to many simply because it comes upfront. However, looking at the requirements to avoid monthly fees is a better way to consider whether a specific bank is a good long-term option. In the case of Chase Savings, there is a $5 monthly fee unless you meet the minimum requirements.