If you have joined the over 40 million Americans (according to Forrester Research) who have joined the 21st Century and ventured into the world of online banking, congratulations! For those of you who haven’t – let’s talk…

Traditional “brick and mortars” with high overhead costs can’t compete with a virtual bank when it comes to interest rates. If you’re shopping, you’ll be lucky to find an interest rate for a savings account at a traditional financial institution collecting even 1% annually. Compare this to the 4% - 5% interest from virtual savings accounts and you’ll see the significant difference. A balance of just $5000 could mean an extra $250 per year in interest.

You’re thinking, “There must be lots of restrictions and high minimum balances requirements,” right? Wrong. In many cases you have the same access to your funds as with traditional accounts with the same minimum balances.

Bottom Line: As with any opportunity, it won’t be for everyone. If you’re not internet savvy, if you haven’t dug your way out of debt to even begin your emergency fund savings, or if you’re lack of close relationships encourages you to know your bank teller by name, then internet savings might not be for you. Review your options with your current financial institution and make an informed decision based on what’s right for your individual financial goals.