Don’t Bank On It: 3 Reasons To Switch To Online Banks

When was the last time you were in a bank lobby?

Many of us still rely on traditional brick-and-mortar banks, but switching to an online bank could be a better option. Online banks offer numerous advantages over regular banks. Here are just a few reasons to consider switching to an online bank.

Tech Advantages

 

Online banks lead the way when it comes to introducing new technology, helping to make banking easier and more secure. While many traditional banks now offer online billing services and mobile banking, many online banks have done it for years- and they’re better at it.

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You’ll find all kinds of new developments in online banking that regular banks are yet to explore. For example, online banks have been bringing in facial recognition technology as a new way of screening people when logging in, as well as voice command.

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Earning Interest

 

Online banks tend to have better savings account interest rates than traditional banks. The typical online bank doesn’t incur the overhead cost of running a physical branch, and they can afford to pay more interest.

If you’ve been thinking of opening up a saving account, make sure to compare online savings accounts and see what you can find. New saving options are constantly being introduced by banks, so it’s worth checking rates. Occasionally, brick-and-mortar banks will offer better interest rates, so don’t discount them completely.

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Remote Service- Does It Work?

 

Online banks are better equipped for remote customer service.

While physical banks have now started bringing in remote options such as chatboxes, they don’t innovate as quickly as online banks.

In fact, regular banks may still recommend that you go into your local physical branch for certain services, while an online banks can handle any query or problem remotely. This could be much better for people that don’t have a local branch, or who have mobility issue. By choosing an online bank, you can handle all your banking from home quickly and conveniently.

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Ignore Brick-and-Mortar?

 

Just about everyone can benefit from online banks, there are still advantages to brick-and-mortar banks that may make you think twice before cancelling your regular bank account entirely.

 

If you’re not IT savvy, you’re probably going to see online banks as an inconvenience, as they rely you to be competent with a computer. You also need to be sharp enough to separate phishing scams from regular emails.

Some people still prefer to have their money in a brick-and-mortar bank, so that they can go into their local branch for a more secure conversation on sensitive matters rather than having to communicate with someone they can’t see in person.

You may also want to keep your physical bank account for quick access to cash when you need it. Not all online banks offer debit cards, so you can’t just take your cash out from an ATM. This makes many online banks better saving options, rather than an option for your primary checking account. Make sure that your bank allows you to deposit checks remotely, because it’s faster and safer.

All in all, it’s best to use a mixture of online and brick-and-mortar banks so that you can get the advantages of both.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

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