Traditionally, financial institutions in this day and age have been brick-and-mortar buildings with staff inside to help you manage your money. However with the evolution and development of technology, clients are able to access their funds digitally through the internet by using online banks.
Where you manage your money is an important part of financial management. Be sure to keep reading to learn more about your options!
 |
 |
What are Online Banks
Online banks still provide most of the same functions that your standard brick-and-mortar location has. Regardless of the institution, you’ll still be able to use basic services. You can withdraw funds from your account, deposit checks, and even earn interest on the accounts.
The primary difference is that these online institutions allow you access your funds through and device with internet capability. That is why online banks may also be called “internet banks”. You can access your money through a computer or laptop through online banking, but many of them also offer mobile capabilities as well. Most brick-and-mortar institutions already give their customers online access to their money.
Pros and Cons of Online Banks
Pros
- Higher Rates : Generally speaking, online banking institutions have offer higher rates than your traditional brick-and-mortar institutions because they don’t have to spend money on maintaining a building, so they have more resources for you.
- Available through the Internet : Within digital resources like mobile and online banking, you’ll be able to access your money whenever you want, wherever you want as long as you have access to the internet.
- ATM Access : Most online banks are accessible through ATMs, because they participate in a being part of a shared network.
- Security : Online banking systems have top of the line encryption protocols to make sure that your money is secure. You can also have additional peace of mind knowing that online institutions are still insured by organizations like the FDIC and NCUA
Cons
- Customer Service : You will no longer have someone to help you in-person to deal with your financial problems.
- Limited Services : Since there is no physical institution you can go to, you lose access to direct financial advisers, notarization services, and other financial services.
- Difficult Cash Deposits : It is harder to deposit cash directly into your account, but you can still do it through a money order or transferring from other institutions.
Should you use Online Banks?
Whether deciding a credit union versus a large corporate bank, or choosing online banks versus your traditional brick-and-mortar banking, you need to choose the financial institution that best suits your needs.
By the way, it is perfectly okay to use more than one financial institution. You help diversify your assets, and give you access to the advantages that both offer.
Generally, regardless of whichever financial institution you decide to go with, your money will be protected. Both online and physical institutions offer FDIC and NCUA insurance to protect from any unexpected losses. They also both offer extended security through encryption and alerts to any suspicious activity in your accounts.
Author’s Verdict
Online banks are a great resource for anybody looking for convenience, but be sure it can fulfill your needs! At BankDealGuy, we have all these guides for you to be able to manage your money better! We strive to create content that will help our readers achieve their financial dream.
In addition, we have a list of bank promotions to get some extra cash in your pockets today. You may also want to check out savings accounts if you want to get started on saving up money.
| PROMOTIONAL LINK | OFFER | REVIEW |
| Chase Private Client | $3,000 Cash | Review |
| U.S. Bank Business Checking | $900 Cash | Review |
| Chase Business Complete Checking® | $300 or $500 Cash | Review |
| KeyBank Key Smart Checking® | $300 Cash | Review |
| Truist One Checking | $400 Cash | Review |
| Chase Total Checking® | $300 Cash | Review |
| Chase College CheckingSM | $100 Cash | Review |
| Chase High School CheckingSM | $100 Cash | Review |
| J.P. Morgan Self-Directed Investing | Up to $700 Cash | Review |
| Chase Secure BankingSM | $100 Cash | Review |
| SoFi Checking and Savings Account | $325 Cash | Review |
| Huntington Bank Unlimited Plus Business Checking | $1,000 Cash | Review |
| Huntington Bank Unlimited Business Checking | $400 Cash | Review |
| Huntington Bank Business Checking 100 | $100 Cash | Review |
| Fifth Third Bank Checking | $400 Cash | Review |
| Axos Basic Business Checking | $400 Cash | Review |
| Axos Business Interest Checking | $400 Cash | Review |
| Axos Bank Business Premium Savings | $375 Cash | Review |
Leave a Reply