Traditional banks and online banks have a lot of things in common, but some advantages make these new banks attractive to web-savvy consumers. These are the best reasons to choose them.
In most cases, to qualify for free checking at traditional banks, you need to have your paycheck deposited into your account or keep a large account balance. Online banks give you the opportunity of having a checking account without the monthly maintenance fees that are usually imposed.
This is one of the top reasons to choose an online bank. Most online banks, offer free checking accounts to anyone, often, with no minimum opening deposit no minimum balance requirement. Additionally, the interest rate on cash in these checking accounts is generally not as high as the rate on an online savings account, but is much higher than you can usually get at a traditional bank.
2-Higher Interest Rates
Online banks are known for paying higher annualized interest rates (APY) on savings accounts and certificates of deposit (CDs). The reason is that they don’t have to pay the huge costs associated with building and maintaining a physical office.
3. New technology has made them more accessible
While online banks have already produced innovative websites, they haven't stopped developing new ways to make online banking simple and are leading the way in banking technology. Making it possible to deposit checks through your computer or smartphone is among the latest accomplishments.
4. Most have extensive ATM networks
Many major online banks have partnered with national ATM networks to offer widespread access for customers, making it easier to withdraw money for free.
5- No Trips to the bank
Finally, people living in small communities may appreciate the anonymity that comes with an online bank—nobody will know about your financial transactions or habits since they won't see you carrying them out.