What’s the difference between $10,000 sitting in a regular old bank account and $10,000 sitting in an online savings account? Give up? The money sitting in the online savings account earns a couple hundred dollars extra a year.
Online savings accounts like such as the ones offered by ING Direct or Emigrant Direct offer high-yielding interest rates on your money. If you put $10,000 in an online savings account that yields 5%, they you’re scoring yourself 500 bucks a year without doing any work. It’s infinitely better than the average bank account which gives you a paltry less-than-half of a percent.
If your money’s going to sit there anyways, it might as well earn you some cash. Plus, when you bank online you don’t have to drive to the bank. Score.
