A digital deposit account offers several advantages over traditional savings accounts, particularly in terms of flexibility and interest rates. Here are the key differences:
- Higher Interest Rates:
Digital deposit accounts typically offer interest rates ranging from 1% to 2%, which is significantly higher than those of regular savings accounts. - No Fixed Deposit Period:
Unlike traditional fixed-term deposits, a digital deposit account does not require you to agree to a set deposit period. You can access and use your funds flexibly while still earning high interest. - Low Minimum Balance:
Digital deposit accounts often allow you to start earning interest with as little as 1 dollar or 100 dollars, compared to traditional savings accounts that usually require a minimum balance of 5,000 to 10,000 dollars to earn interest. This makes digital deposit accounts more accessible with fewer restrictions.