Choosing a bank may not be easy. Many people have started to use online banks instead of traditional banks. Find out if it’s the best option for you too.
Traditional banking can be time-consuming and online banks, on the other hand, let you carry out transactions over the internet through your computer or a mobile device in much less time. Besides this advantage, online banks have other benefits such as easy and free checking, higher interest rates, new technology and extensive ATM networks.
All these reasons show why they are a convenient option for customers used to using the web, who are seeking for cheaper, high-interest accounts with advanced features. But no, they're not perfect for everyone.
Some people, (mostly older people), prefer to be attended to by a person and not by automatic devices. If you are someone who likes to do business with or get account guidance from agents personally, you may want to stick to a traditional bank. The same may happen if the idea of knowing that you can physically access the bank that holds your money is important for you.
Being familiar with using computers and having a basic understanding of internet security is also a must to be able to manage your accounts easily. To be sure your money is safe, it is important to choose a legitimate bank that offers insurance on your deposits from the Federal Deposit Insurance Corporation (FDIC). But, even then, you'll need to keep your system protected to avoid phishing. This is a risk if you are not familiar with internet scams and can get tricked by a copycat website into providing your password, personal information or bank account details.
Finally, technical difficulties such as problems with your wi-fi connection, power cuts, computer faults or website problems may occur from time to time and affect your transactions.
But basically, if you are a web-savvy customer (which is the case of most people today), the benefits of using an online bank usually exceed the drawbacks.