As technology improves, online banking has become more common and easier to use than ever. But what about those banks that are online-only? For those who are considering making the shift from brick-and-mortar to digital, there are a number of things to keep in mind.
First, what are the advantages to online-only banking? The biggest benefit is that they tend to offer higher interest rates and lower fees. You'll also have access to your finances at all times. This BusinessInsider story weighs the pros and cons for online banking versus sticking with the more traditional approach. They note that banking online is "a really good option for younger customers" who are "more comfortable with technology." And as for your bottom line? "You'll see your money grow faster than with a big bank, and you'll pay less in fees."
But it might not be for you. This post from US News highlights why real banks are still necessary, especially for small business owners, freelancers, and for people who just like being around other people. For example, some banks have a dollar limit for checks that can be deposited online via smartphone, so if you're used to getting checks that are $5,000 or more, you might not find it so convenient to deposit your money after all.
Still, if you think you're ready to make the transition, check out the chart below, courtesy of FindtheBest.com, to search for an online bank that suits your needs.
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About the ratings: "The Smart Rating is a weighted average that calculates a quantitative rating based on interest rates, account fees, and financial information provided to the Federal Deposit Insurance Corporation (FDIC). These scores take into account the bank's interest rates, account fees, number of branches, ratio of equity to non-current loans, and annual deposit growth. Together, these factors form a good indication of the overall quality of the bank."