The Advantages of Having an Online Bank Account

The concept of online banking first emerged more than a decade ago, but it was still new back then and internet scams were also common. Therefore, not many people were interested in having an online bank account. However, things have progressed considerably and lots of advancements have been made where online banking is concerned. Even though some traditional banks still continue to maintain brick-and-mortar branches, a number of elements of consumer banking have shifted online.

Why open an online bank account?

There are numerous benefits that you can enjoy when you decide to open an online bank account. Online banks are familiar with the security risks and have taken steps to mitigate them. Let’s take a look at some of the benefits that you can get when you have an online bank account:

Free checking

If free checking is something you want, an online bank account is your best bet. There was a time when it used to be a standard in almost every bank, but finding it is more difficult than ever today. In most cases, you have to maintain a large account balance or have your paycheck deposited directly into your bank account to qualify for it. This doesn’t apply to an online bank account; you can open it even if you have just one dollar to deposit.

Higher interest rates

With an online bank account, there is a potential for you to get higher interest rates because these banks don’t have to pay any overheads related to building maintenance because they don’t have a physical branch. Therefore, they are able to pay a bit more than traditional banks. This was the primary attraction of online banking in its early days and it remains the same today as well.

Good technology

When it comes to banking technology, online banks are usually ahead of traditional ones. They are able to offer new features before brick-and-mortar stores can. For instance, mobile check deposits is a great way to fund an online bank account without needing to mail in deposits. This means that you can start benefiting from higher interest rates more quickly. Furthermore, with an online bank account, you can enjoy features that you may not be able to access otherwise. If your traditional bank still doesn’t offer you person-to-person payments or online bill pay, you can get these features with an online bank account. Depending on where you reside, you may also be able to get access to a larger ATM network.

Avoid the branch

Ultimately, having an online bank account saves you from the hassle of having to go to a branch. If you require any help, most banks provide you with remote and timely customer service through multiple channels. You can reach out to the bank via email, toll-free phone lines or live chat, as per your preference. Moreover, as competition is getting intense in the market, you will be able to access improved and prompt customer service than ever before.

Anonymity

Those who live in a small community just love having an online bank account because it can provide them with anonymity. When you live in a small town, everyone will know what financial transactions you are making because you have to visit the branch and the teller probably knows you. This is not something you have to worry about with an online bank account because you don’t need to talk to anyone or disclose your finances to anyone.

Insurance

There is a common misconception amongst people that they can only get insurance with traditional banks because they can be seen and touched. But, this is not true. You can get insurance even with an online bank account. If your finances are compromised in any way, you will still be reimbursed because insurance policies are applicable to your online account too. This adds an extra layer of security and gives you peace of mind.

Lower fees

As mentioned above, brick-and-mortar banks have to deal with overheads for maintaining their branches and buildings, which can increase their costs. They cover these costs by charging a higher fee for different services that they provide to their clients. Online banks don’t have to deal with any such overhead and they are capable of passing these savings to their customers. This means that with an online bank account, you have to pay little or no fees, which include monthly maintenance charges for your account. In addition, they don’t charge transaction fees and don’t require you to maintain a minimum balance in your account.

Convenience

Do you need to check the status of a transaction? You can just check the details of your bank account online and get your answer. Do you wish to deposit a birthday check? You can simply upload a picture of the check to your bank’s app. Consumers can benefit from unprecedented convenience with an online bank account. You don’t have to wait in line to deposit a check, transfer funds or pay a bill. As long as you have access to the internet, you can be in any part of the world and manage your financial transactions, along with your online bank account.

Should you open an online bank account?

Considering the benefits outlined above, having an online bank account is certainly a wise decision for anyone in today’s world. Online banking has made it easier for everyone to manage their personal finances, thanks to the numerous services that are available from a banking website or a mobile app. With a couple of clicks, you can check out your online bank statements, set up automatic bill payments, have your paychecks deposited directly into your account and keep up with your account status 24/7. The benefits of having an online bank account are downright significant; you will save time, save paper, stay on top of your own finances and never miss a bill payment. Plus, the increased security measures also work in your favor, making it a good decision in the long run.