For many years, all banks had brick and mortar locations where customers would go for their banking needs. However, with the development of the internet and advances in technology, there are a number of banks that are online only. If you are planning on opening a new bank account in the near future, you may be wondering whether you should select a traditional bank or an online bank. Today, online banks can offer their customers a number of advantages. Some of the top benefits of having an account with an online bank include:
Favorable Interest Rates
One of the reasons that online banks have become increasingly popular over the last few years is the fact that most of them offer very favorable interest rates compared to traditional banks. In most cases, you can open a savings account or buy CDs and earn more dividends over time than at a traditional bank since the interest rates are substantially higher. Thus, if you're planning on opening a savings account or want to purchase any investment products, you are much better off seeking out an online bank instead of going to a traditional bank that has brick and mortar locations.
Little to No Fees
Online banks are doing their best to attract new customers, and one of the ways they are achieving this is by allowing people to open new accounts that come with either extremely low fees or no fees. For example, many traditional banks charge a monthly service fee on an account unless a direct deposit is set up. However, the majority of online banks offer accounts that do not have any type of service fees. This means that you never have to worry about wasting money and paying a bank for their services. In addition, a lot of online banks waive ATM fees, so you can access your money any time with your debit card.
Easy to Use
Since online banks do not have any brick and mortar locations, they work very hard to ensure that online banking is as smooth and easy as possible. Their websites and apps are typically incredibly user-friendly and intuitive. A big perk of online banking is the fact that you can do all of your banking from your phone, laptop, or tablet—you can say goodbye to the days of driving to a physical bank since online banks make it possible to do everything over the internet.
For more information, contact a bank.Share
25 September 2020
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