2006-12-15 13:55:26 · 2 answers · asked by dixiechix 1 in Business & Finance ➔ Personal Finance
If you are talking about an online only savings account like ING.com the 2 major differences are they have a much higher APY than a traditional bank since there is virtually no paper or a physical bank to withdraw or deposit money,it's all done online but the other difference is that you don't have instant access to your money you request it and it gets deposited into the other bank account that you will have registered with them.This usually takes about 3 days.
So basically the pros of an online savings is that the interest rate is much higher.
The con is that you have to wait for your money and you need another bank account to transfer money in and out of the online one.
2006-12-15 14:09:41 · answer #1 · answered by G M 5 · 0⤊ 0⤋
I'm pretty sure it just references the fact that an institute is physical while some online banks are just back office, meaning you can't find a branch anywhere.
2006-12-15 22:10:21 · answer #2 · answered by Irish80 1 · 0⤊ 0⤋