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Excuses For Not Using Online Banks

1. Most people really don't care about a savings account, unless it is goal oriented.

Very few people follow a budget religiously. Most people have a savings account because that's what you are supposed to have, right? Some people will have a savings account with a short term purpose in mind. Maybe they finally want that Plasma Television or a furniture upgrade. They set spending limits for themselves and take their savings accounts seriously for at least a little while. Why would people bother switching to an online account when savings accounts as a nonentity anyway.

Savings accounts are basically your emergency fund. They are for those times of need. What happens if you lose your job or your spouse loses their job? What if your car major repairs? What if someone in your family needs emergency medical treatment?

You need to be prepared for such circumstances. Never, never think that you are immune to the need of liquid assets. People that do not maintain some sort of liquid resource are gambling with their families well being.

The common thought is that you should save a minimum of six months of expenses in your savings or short-term savings. To achieve this you should budget your money accordingly.

Don't be fooled into thinking that online savings accounts are the only financial instrument you should use. Once you reach your six month expense budget and your short-term savings, you should look for longer-term, greater interest-bearing financial instruments. Year-long CDs and government bonds. Depending on the market though savings accounts online in many circumstances will match or beat the rates of even these tools. If you watch the rates set by the Federal Reserve Rates you can gauge which instrument is right for you.

2. People fear technology: Hackers, Spyware, and Viruses Oh My!

It's funny, how a few movies and a couple of segments on the News can change our entire perception of a medium. Many people just won't access their finances at all online regardless of what you tell them because they believe a sweating guy in a dirty T-shirt, smoking a cigarette is just waiting by a computer is just waiting to steal their information.

Following simple common sense techniques and practices will keep all of your assets safe. I mean really, even if you blatantly screw it up and give all of your bank information to the worst person in the world; you are not liable for one cent in the majority of online banks. Shouldn't that make even the most paranoid of people feel a sense of security?

3. Experts say that most savings account holders are loyal.

I must have read at least a dozen articles that cite brand loyalty studies and customer surveys that view savings account owners as loyal. I highly doubt it is loyalty that makes you keep your money with someone. It's much easier to believe that it is convenience and features that keeps customers coming back. Do you really care if Bank of America, Washington Mutual, and/or HSBC has your money? Do walk around bragging that you have money in a certain bank? Do you find yourself dreaming that one day you can open an account with a certain Bank? I know I don't!

Features and convenience is what really keeps us going. The more access we have to our money the better. The easy it is to tie a checking to a savings, so that a nickel extra can be transferred to savings, the more I want that account. If my savings account can act as my checking account overdraft, without any extra fees, that's the account I want. You give me a bank with every feature under the Sun with a competitive savings account rate, that's the account I want.

In Conclusion:

Savings accounts online are fantastic financial instruments that offer a great deal of value. Most people need to spend a decent amount of time to understand their use and value. We know for sure that banks are taking care of the security issues. More and more features pop up every day with the current and new online savings accounts. The main reason most people are reluctant to take any action on their current savings accounts is time. Most people, I don't argue with them one bit on this; value their time over a few cents on the dollar annually.