More and more people are choosing to conduct their banking online. Many financial institutions, including local credit unions, may offer online banking as a feature. However, consumers can also open bank accounts where transactions are carried out exclusively online.
There are both benefits and drawbacks to online banking. You need to know what to consider before making a decision that will have major implications to your personal finances.
Remember to Shop Around
Just about every kind of online bank will have quite a few fees that you'll encounter - most often more so than you'd see banking at a physical branch in your community. But each online bank will have different types of fees and different fee amounts. That's why it's important to compare before making your choice.
Not all banks have no-fee checking accounts. Fees you'll be charged could range from paying for non-electronic statements (having your monthly statement mailed to you), or to use paper checks. Some banks may charge you a fee every time you use your personal checks. Others may limit the number of personal checks you can write before you incur additional charges. Still others may charge you extra to use features like online bill pay.
One of the biggest benefits of online checking and savings accounts is the higher interest rates. Once again, you'll want to shop around to find the best option.
Customer Service
If you decide to bank exclusively online, you may run into trouble finding good help when you need it. Make sure at the very least that there is an effective way to communicate with your bank. For example, is there a secure online chat function that connects you with a customer service representative much like our instant messaging feature here at Check Advantage?
Sometimes it's easier and faster to resolve problems face to face instead of over the phone or through email. That's something you can find at your local bank, but might be tough to get online. If you place high-value on quality customer service, you may want to think twice before banking exclusively online.
Delay of Deposits
When it comes time to cash or deposit a physical check, you may find it is more difficult with online banking. While electronic transfers are fast - paper checks can complicate things. That problem can be solved if your bank offers remote deposit capture.
Remote deposit capture has very recently become available to consumers. It allows you to scan or take pictures of the front and back of checks you want to deposit, send it to your bank, and have them deposit the funds in your checking account.
Debit Cards and ATMs
You're going to want to be able to access your money through your online checking account. Make sure you are issued a reliable debit card. Check into what features come with the card - including overdraft protection. You should be able to choose if you want to opt in or opt out of this preference.
It might be difficult to find "in network" ATMs with an online checking account. That may mean you'll be paying extra whenever you need to withdraw some cash from the account. Find out how many free ATMS are near where you live.
One other very important factor in choosing an online bank - make sure they are FDIC Insured. Security is extremely important when it comes to your money. Your bank should be insured to the full $250,000.
Well-known online banks such as ING Direct, Ally Interest and EverBank will are reliable and come highly recommended.
If you aren't the most Internet savvy person - you may want to compare the web interfaces of different online banks - find the one that's easiest for you to navigate.
Since many brick and mortar banks offer the same features as online banks through their websites, the best decision may be to open an account at a physical branch and still manage your money online. This way you get the best of both worlds.
100% Satisfaction If you are not completely satisfied with your purchase, please contact us immediately. We promise to take care of it.
100% Secure Check Advantage partners with McAfee & VeriSign to ensure all personal data remains safe. Click seals to verify and learn more.
100% On Time, Every Time Check Advantage partners with UPS to ensure checks arrive on time - every time. We offer online shipment tracking.
100% Privacy Check Advantage partners with the Better Business Bureau to ensure complete privacy and the reliability of our company.
