Sunday, September 2, 2007

Online Banks Vs Traditional Banks

When it comes to traditional banking Vs online banking there are alot of some major differnces especially when it comes to the APR (annual percentage rate) On the average a traditional bank wil give back an apr of say .5 % as opposed to an online bank's average which will give roughly 5% back on average. Alot of consumers don't want to leave their current bank because they don't want the hassle of having to re-doing their dirrect deposits or the allotment for certain payments. Online banks are trying to tear in the market share of the traditional banks by offering consumers these perks such as high dividend yields and no atm fees. Its probably best to open up one right now while the battle is on. In my opinion it is well worth it to open one up even if it is a hassle the return will make up for it

At HSBC, an online bank there are no checking fees and you can manage your account anywhere in the world that there is an internet connection as oppsed to the traditional bank where you have hours that they are open like from 9 to 5. Another amazing perk of the online bank HSBC provides besides the high percentage yield is it's 3 free withdrawls from any bank per stament period. There are a host of other online banks that offer similiar perks and the same services that traditional banks offer such as E Trade, and ING.

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