PayPal is the world's most trusted internet funds transfer System. It acts as an intermediary between people and organizations that will be making payments for services received on the internet. PayPal is very instrumental in getting around your online business. There are many people who are wary of credit card payments on the internet because of the history of frauds. With PayPal, the payer funds his PayPal account from his bank account and then transfers the payment via e-mail to the payee. The win for consumers not only comes in the form of added convenience with access to your account 24/7 but because banks can pass the savings onto consumers in the form of lower fees and higher returns. Here are 5 reasons why you should why you should have one.:
1. Higher Interest Rates - Because an online bank doesn't have the expense of running a bank location, with tellers and such, they have more capital to use to offer better interest rates for their customers. This means your money compounds and grows faster than at a traditional bank.
2. Automatic Transfers - Most online savings accounts provide automatic setups where you determine a set amount you want to contribute on a set timetable (daily, weekly, monthly). This puts savings out of mind and makes sure you actually contribute to savings (rather than spend what you have and leave you nothing to contribute).
3. Setting up sub-accounts/Savings goals - Another benefit of most online accounts is the ability to set up sub-accounts or different savings goals. You can create different accounts for different goals to help you organize your savings better. Want a Christmas fund? Set up an account for it and for a bonus create an automatic savings so you have the money in your budget.
4. Great Customer Service - I've found that online savings accounts tend to have great customer service when needed. Because online banks want your business they tend to make sure they have great customer service to keep you a happy customer. You don't need to be face-to-face with someone in order to have great service!
5. Excellent Place for Emergency Savings - It's important to have emergency savings set aside for the times life throws you a curve ball and you need money! But where to put the savings? It has to be someplace safe and with easy access. Online savings accounts provide this as well as offer up interest for your savings and automatic transfers to help grow your savings. It's easier to build an online family savings and then don't add money all the time. When applying for an account you should think about setting up an everyday direct debit from the everyday bank consideration. By making an everyday deposit each 30 days you'll soon find your savings as well as interest earnings beginning to add up. The great thing is that many of the online-saving account offers available are very competitive and you will probably find a range of offers with high mortgage rates, no minimum balance requirements and no fees or penalty charges. Just be sure to compare the plethora of online savings accounts available prior to apply online.
