Why You Should Have an Online Bank Account in 2021
This is Why You Should Have an Online Bank Account in 2021. Hello everyone, I am Samuel Balaoro, and welcome back to The BE Mindset Group. You know we talk about finding and creating opportunities along with personal development. This includes having security with your finances.
However, big banks are not doing much to help with this goal. I should know because I used to be with Chase Bank and I remembered when I had to pay a lot of fees. Most of those fees don’t even make any sense. And in 2020 most people needed help with their money, but most of their money is lost from staying in the bank. This goes along with how the big banks are not keeping up with the time.
So I did what any other person would do and look for alternatives to this problem. In this modern age, FinTech seemed to be a viable solution. If you don’t know, FinTech is short for Financial Technology and online banking is a part of that. So if you don’t have an online bank yet, this is why you should have an online bank account in 2021.
1. An Online Bank Account Will Save You From Fees.
This is probably the reason why most people will have an online bank account. A lot of big banks tend to have many hidden fees. For example, they have a monthly maintenance/service fee just for leaving your money in your account. You shouldn’t be having any kind of fee for something like that, especially with the rising inflation. Overdraft fees are another big problem along with transfer fees.
An online bank account will save you from all of those fees. And most if not all online banks do not require you to have a required minimum balance. Most big banks will give you a required minimum balance and will charge you with fees if you are below that minimum. If you don’t want to stress about it, just open an online bank account.
2. An Online Bank Account Can Give Your Paycheck Early
You read that right. While with most big banks you have to wait for your paycheck to come, online banks can give it to you sooner. This may not be important for some of you, but sometimes you need to have your money earlier for possible emergencies.
An example can be like forgetting that you have to pay rent for that month, but the due is coming before your paycheck will come. Or maybe you got into an accident and you need your money right away. Well, most online banks solved those problems with the ability to receive your paycheck earlier.
3. It’s Easier to Grow Your Savings
Online banks also give you the ability to automatically put some money into a savings account. While it is true that some big banks are beginning to offer this feature as well, the reality is that you don’t want to put your money in there for how low the annual percentage yield is.
Now yes, you don’t expect to become rich by leaving your money in a savings account. But if you are holding an emergency fund, at least get something out of it. Big banks usually offer around 0.01% APY with their savings accounts, while online banks offer around 0.50% APY. It’s very clear who’s the winner here.
Have an Online Bank Account With a Simple Online Bank
There are many great online banks to choose from. But if you are someone like me who just needs the bare essentials of a regular bank, then I suggest Chime Bank. Chime Bank is one of the original online banks that has been there for a while now. If you don’t know who Chime Bank is, they are an FDIC Insured bank with all the essentials you need from a bank, a checking, and a savings account. Currently, while writing this article, Chime’s Savings is offering at a 0.50% APY, which is better than your normal bank. They even have everything that I’ve mentioned above like no hidden fees and receiving your paycheck up to two days earlier.
Also, for a limited time only, if you sign up through this link, you’ll receive $75! All you have to do to receive this free money is to sign up and deposit $200 or more within the first 45 days of enrolling. If you love what we’re doing here in The BE Mindset Group and you want to support us as well as receive free money, then sign up here before the offer ends on January 31, 2021!
Online banks are not fully perfect yet, but they are already doing things that are changing the way we view our finances. The FinTech industry is continuing to grow and will eventually take over the old big banks if they continue to fail their customers. It’s a good idea to have an online bank account already if you don’t have one and hopefully, this article has helped you to do so.
Thank you for joining us today. If you found this article valuable, then share this with your friends. And if you do want to learn more about the world of FinTech and other personal finance-related topics, then comment below on what you want to see from us next. We love reading the comments and want to continue helping you through your journey of personal development. This is Samuel Balaoro of The BE Mindset Group and always remember to be alive, be happy, be free, be you.