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In the digital age, managing your finances has never been easier, thanks to the advent of online banking. Online checking accounts offer a range of benefits that make them an attractive alternative to traditional brick-and-mortar bank accounts. This article explores the merits of opening an online checking account, highlights some of the best online checking accounts available, and delves into the current $500 promotion offered by Axos Rewards Checking. Additionally, we provide a comparison chart to help you make an informed decision.
Table of Contents
- Introduction
- The Merits of Opening an Online Checking Account
- Differences Between Online Checking and Brick-and-Mortar Checking Accounts
- Best Online Checking Accounts
- Axos Rewards Checking Account Promotion
- Comparison Chart: Axos Rewards Checking vs. Other Online Checking Accounts
- Conclusion
- FAQs
Introduction
As technology continues to evolve, online banking has become increasingly popular. Many consumers are shifting from traditional brick-and-mortar banks to online-only banks due to the convenience, lower fees, and attractive interest rates offered by the latter. Understanding the benefits of online checking accounts and how they compare to traditional accounts can help you make a more informed financial decision.
The Merits of Opening an Online Checking Account
Convenience and Accessibility
One of the primary benefits of online checking accounts is the convenience they offer. You can access your account 24/7 from anywhere with an internet connection. This means you can manage your finances, pay bills, transfer money, and check your balance without having to visit a physical branch.
Lower Fees
Online banks typically have lower operating costs compared to traditional banks. These savings are often passed on to customers in the form of lower fees. Many online accounts offer no monthly maintenance fees, no minimum balance requirements, and free access to a network of ATMs.
Higher Interest Rates
Since online banks do not have the overhead costs associated with maintaining physical branches, they often offer higher interest rates on checking accounts. This allows your money to grow faster compared to traditional checking accounts.
Advanced Technology
Online banks leverage the latest technology to provide a seamless banking experience. Features such as mobile check deposit, real-time transaction alerts, and intuitive mobile apps make managing your account easier and more efficient.
Differences Between Online Checking and Brick-and-Mortar Checking Accounts
Best Online Checking Accounts
Several online checking accounts stand out due to their features, rates, and fees. Here are some of the best options available. All accounts listed are FDIC insured:
- Axos Rewards Checking
- CIT Bank eChecking Account
- Ally Bank Interest Checking
- Capital One 360 Checking
- Chime Spending Account
Axos Rewards Checking Account Promotion
Axos Bank is currently offering a lucrative promotion for new customers who open a Rewards Checking account. Promotion expires July 31, 2024. Use promo code RC500 before July 31.
To earn up to $500, you need to meet two requirements during each statement cycle:
- Your Rewards Checking account receives qualifying direct deposits of at least $1,500 in total.
- The average daily balance in your Rewards Checking account is at least $3,000.
For each statement cycle that you meet these requirements, you will earn $100, up to a total of $500. This promotion is an excellent incentive for those looking to switch to an online checking account.
If you are tired of the extremely low savings interest rate (APY) offered by traditional brick-and-mortar banks, please click here for one of the best rates in the country to help you grow your hard-earned savings or to begin saving for any purpose.
Raising the Bar for Checking Accounts with Axos Rewards Checking
Axos Bank’s Rewards Checking account is designed to offer unparalleled benefits. Here are the key features:
Build your own APY with up to 3.30% APY*. Start with direct deposit and watch your money grow.
No Fees
- Zero monthly maintenance fees
- No overdraft fees
- No minimum balance fees
ATM Fee Reimbursements
Tap the ATM anytime you need because Axos reimburses all domestic ATM fees.
Rate Requirements
To earn interest, you need to meet certain requirements:
- Direct Deposit: Receive monthly direct deposits totaling $1,500 or more. Direct deposit is required to unlock your other interest-earning options (0.40% APY).
- Debit Card Spending or Personal Finance Manager: Use your Axos Visa® Debit Card for a total of 10 transactions per month (minimum $3 per transaction) or link an account to activate Personal Finance Manager (0.30% APY).
- Managed Portfolios: Maintain an average daily balance of $2,500 per month in an Axos Invest Managed Portfolios Account (0.99% APY).
- Self-Directed Trading: Maintain an average daily balance of $2,500 per month in an Axos Invest Self-Directed Trading Account (0.99% APY).
- Loan Payment: Use your Rewards Checking account to make your full monthly Axos Bank consumer loan payment. Mortgage, personal, and auto loans are eligible (0.60% APY).
Comparison Chart: Axos Rewards Checking vs. Other Online Checking Accounts
Information in this table is as of 7/1/24
Conclusion
Opening an online checking account can provide numerous benefits, from lower fees and higher interest rates to advanced technology and convenient access. Axos Rewards Checking stands out among the best online checking accounts, especially with its current $500 promotion and the potential to earn up to 3.30% APY. By meeting simple requirements, you can take advantage of this attractive offer. Promotion expires July 31, 2024. Use promo code RC500 before July 31.
Whether you are looking for a convenient banking solution or aiming to maximize your earnings with higher interest rates and cash bonuses, Axos Rewards Checking offers a compelling alternative to traditional brick-and-mortar accounts.
FAQs
- What are the main benefits of opening an online checking account?
Online checking accounts offer convenience, lower fees, higher interest rates, and advanced technological features compared to traditional brick-and-mortar accounts.
- How does Axos Bank’s $500 promotion work?
You can earn up to $500 by meeting two requirements during each statement cycle: receiving qualifying direct deposits of at least $1,500 and maintaining an average daily balance of at least $3,000. For each statement cycle that you meet these requirements, you will earn $100, up to a total of $500. Promotion expires July 31, 2024. Use promo code RC500 before July 31.
- What makes Axos Rewards Checking a good choice?
Axos Rewards Checking offers up to 3.30% APY, no monthly fees, unlimited domestic ATM fee reimbursements, and the potential to earn up to $500 through their current promotion.
- How do online checking accounts compare to traditional checking accounts?
Online checking accounts typically offer lower fees, higher interest rates, and greater convenience with 24/7 access via the internet. Traditional checking accounts provide in-person customer service and access to physical branches.
- Which other online checking accounts are worth considering?
Other notable online checking accounts include CIT Bank’s eChecking Account, Ally Bank Spending Account, Capital One 360 Checking, and Chime Checking Account.
By understanding the merits of online checking accounts and comparing different options, you can choose the best account to meet your financial needs and take advantage of valuable promotions and features.
