I wrote about the criteria behind the best online bank accounts a few weeks ago. Once the post went live, I received a few interesting emails from readers of Studenomics. One reader brought up the fact that it feels like online banking is taking over for 20-somethings. I thought about this and realized that it’s fairly accurate. It feels like more and more young people are entering the world of online banking.
My Dad joined the online banking world a few years ago. Before that he thought that I was a maniac for doing all of my banking on the internet. To this date, most of my older relatives still think that I’m insane for trusting a website with all of my money (well to be fair, I got a few online high interest accounts).
Let’s take a look at why online banking is taking over for Generation Y:
Online banking services are convenient.
I don’t know about you but when I’m lounging around the house in shorts I really don’t feel like showing up in person to resolve a banking issue at the bank down the street. With the rise of internet banking, we can take care of all of our financial stuff without ever leaving home. How perfect is that?
We’re always online.
Whether it be buying stuff of eBay, going on FaceBook, work on undergrad/graduate school assignments, or blasting music. Why not throw in online banking services into the mix?
We want more money.
Online high interest savings accounts simply pay us a higher interest rate. At the end of the day, this is what we want. Higher interest rates with the elimination of random service fees, online banking instantly becomes an attractive option for 20-somethings. Our banks have nickel-and-dimed us a bit too much over the years. We’re sick of it and are ready to embrace the world of online banking.
(Aside: I checked my online bank accounts 2 times while writing this post. Plus, I do realize that people from the ages of 8-80 are using online banking, so don’t grill me.)
If you are interested in online banking you can check out review of ING Direct & Smarty Pig, or you can check out my look at the best online bank accounts.
Why do you think online banking is so popular with Generation Y?
I'm a 24 year old dude that studied finance in school and now wants to make it fun. Over the past three years I've been helping readers like YOU make more money and keep more cash in your pocket. I've appeared live on Fox Business News and I've been mentioned in the NY Times.
{ 1 comment… read it below or add one }
I totally agree that those of us in our 20s are much more likely to do as much as possible online, but I’m laughing right now because my parents and grandparents were the ones who insisted I look into ING 6 years ago.
They said that I’d get better rates and that they had been happy for more than 3 years. I believe my mom’s actual words were, “Stop worrying so much. They’re insured and give you more interest. It would be silly to pass up that much free money. Do you really want your grandparents to be more web savvy than you?”