Student Credit Card and Credit Education Blog

I’m sure you’ve seen advertisements for various online institutions that advertise “e-savings rate of x%” or something similar. And you may be thinking whether or not they are more beneficial than your local national chain.

As with most financial decisions, there are pros and cons. However, for the most part, the long-term benefits of using these banks, such as ING Direct and Emigrant, outweigh the negatives.

Pros:
- Significantly higher interest rates
- Access your account through any Internet connection
- Most have no minimums
- Other great features (referral bonus, excellent mortgage rates, etc.)

Cons:
- Actual access to your money is a bit more difficult
- Some people may be wary of banking online (even though you shouldn’t be!)

I have an account with ING Direct and find their site and customer service to be top-notch. In order to access my money, I also have a Bank of America account, where I keep small amounts of money. This account is solely because I have ATMs close-by, so I have easy physical access to my money. Every month, I then transfer money to ING Direct, in order to enjoy the higher interest rates.

Want a great way to start saving for your future? Sign up for one today!

P.S. This is a fantastic article from CNN Money that describes 43 recommendations if you have just received $5,000!