Technology usually makes our lives easier and when it comes to our banking needs, of course it’s amazing to just use our phones to do every single transaction. But this is just one of the benefits.
Brick-and-mortar banks offer a lot of services, we won’t say they don’t. But imagine having to go to a bank to do every single transaction you need to do. It’s, to say the least, inconvenient. Thankfully, we have online banks. Of course, there are many similarities between regular and online banks, but here are the top 4 reasons why should choose the online option:
1- Free checking
This is probably the top reason why online banks became so popular: you can have a checking account without the monthly maintenance fee. Some credit unions offer this benefit too, but they are usually smaller institutions. Traditional banks? They usually charge the regular fees.
Online banks tend to offer free checking accounts to almost everyone, and often with no minimum balance requirement.
2- Higher interest
Online banks usually pay higher APY on savings accounts and CDs. This is because they don’t have to pay the costs associated with a brick-and-mortar bank maintenance, so they can afford to pay customers a little more.
However, keep in mind that rates might change through time. A lot of people tend to open accounts (since they are free, why not?) in different banks and then transfer the balance as the interest rate changes.
Another good reason to switch to online banks is because they are usually ahead when it comes to tech-features. Some traditional banks and credit unions also offer some good technology, but with online banks, you will have access to features you wouldn’t otherwise. For example, online bill pay or person-to-person payments.
4- No trips to a branch
This is the ultimate great reason why opening an account in an online bank is worthwhile. Think of not having to visit a branch during limited work hours. You probably have a smile on your face, right? You will save a lot of time, and as we all have less and less time in our hands, it is really convenient to do all your banking without having to go anywhere.