Although the internet has been simplifying many everyday chores, there still are people who are fearful of online banking. So, let's take a quick look at the pros & cons of online banking.
As time passes by and the internet evolves, we have more opportunities to carry out our daily responsibilities online. Banks are also part of this trend as it represents fewer costs and quicker administrative procedures. The use of online banking has changed the traditional way in which banks work. It seems they have everything customers need, they even offer lower fees to those who manage their accounts fully online.
Nevertheless, many people still don't trust the online method. Check the advantages and disadvantages of online banking and decide which is the best way to manage your bank account.
Online or offline banking?
These are the points to analyze the pros and cons of online banking:
- Security: This is the main issue of concern for those who don't trust online banking. However, offline banking also involves sharing with the bank certain information that will be later uploaded to the entity's network. And this could be just as vulnerable to hackers as the information you provide online.
- Fees: Online banks offer lower fees and especially consider those with smaller balances. Regarding savings accounts, offline banks require almost $5,000 to avoid fees in these types of accounts, while online banks only require $350 (average).
- ATMs: We already know that offline banks penalize those who use other bank's ATM. But, what about online banks? They often have agreements to avoid additional fees in many ATMs. Others even reimburse those fees you may be charged.
- Customer service: Online banks offer customer service via phone or computer. If you'd rather talk face-to-face, you should turn to traditional banks.
- Interest Rates: Online banks usually have better interest rates. Specialists assure that offline banks' interest rates could be six times higher.
- Deposits: If you were wondering how deposits work in online banking, it's quite easy. You can email checks to the online bank or use eDeposits (take a picture to the check and upload it to your account).