Why You Are Losing Money By Using A Traditional Neighborhood Bank

An online bank simply means a bank that doesn’t have a ‘bricks and mortar’ office in your local neighborhood. All the same rules and laws apply to online banks – just make sure the bank is FDIC-backed (Federal Deposit Insurance Corporation) and your money should be safe. There’s many good reason why you should consider online banks.

Convenience

Online banking means you get to do nearly all of your normal banking tasks, such as checking your balance, making a transfer, or paying bills - all via the internet. No more waiting in long queues, or rushing to the bank before closing time. The only tasks you can’t do online (for obvious reasons) are using a safe deposit box, or paying in amounts of cash. However, if you don’t plan to do these, then an online bank offers real savings in time and money. Online banks often offer telephone banking also.

Value

An online bank doesn’t have the same overheads as a ‘bricks and mortar’ bank does. This means it is much more able (and likely) to pass on savings and benefits to you, the customer. Many online banks offer a slightly higher interest rate on their savings accounts, and charge less for services. For example, currently less than half online US banks charge a monthly fee for a checking account.

Security

All online banks will have secure customer access, with unique log-in details just for you. You may also be given a key fob with a password generator, to make the process even more secure. It’s sensible to make sure your online bank has a good customer support service, with a phone number and email address, in case you have any problems.