More Reasons Why You Need a Online Savings Account

I went for lunch with a friend of mine a few weeks ago. Our conversation usually revolves around the typical 20-something male topics, with a tad bit of business talk. The business talk of course turned to day trading. This friend expressed his deep issues with the hit that this portfolio has taken in the past year. I didn’t have anything mind blowing to add to the discussion because I’m fairly boring with my investments. I do own a small portfolio of stocks, but the majority of my money is in a online savings account. My friend was really stressed out with his complex stock trading system. I on the other hand didn’t show any concern over my simple financial formula.

I often praise online savings accounts here. I don’t want to become a shill for online high interest accounts, but I do believe in getting the message across. You don’t need to create a complex financial system that involves day trading and short selling. A simple financial house is perfectly cool.

A few months ago I shared some important information with you guys about what you need to know about online bank accounts. Today I wanted to share a few extra reasons why you should consider an online savings account:

Unlimited control.

The money is yours. You can invest the money or you can just let the money sit in the bank account for the next 5 years. The control is in your hands. The money is also fairly liquid (aside from the 3-5 day wait). You don’t need to sit around biting your nails hoping that someone will purchase your shares. Don’t you have better things to do?

You can do what I do. I like to organize my money into many sub-accounts for the many different areas of my life (emergency fund, random savings, vacation account). This way I try to be fairly prepared for the many random situations that life can bring us.

Unlimited options.

The one issue with stocks and other investment vehicles is that the money is tied up and there’s always the risk of fluctuation. With your hard earned savings available at your convenience, you can do as you please with your money. You can use the savings to go on a trip, take a course, or to invest it into your side business. I don’t know about you guys, but these options are much more attractive to me.

Less stress.

Can you handle all of the market swings? Will you pull all of your money out of the market? The problem with trading stocks and other investment options is that one must be pretty risk adverse to deal with the ups and downs. It’s easy to smile when everything is running smoothly. The real question is: can you handle the stress of the unknown?

Has the current economic climate got you considering other investment options? Are you still not impressed with the low interest rates that online bank accounts offer?