I’ve always belonged to a traditional brick and mortar bank, but it seems like more and more of my friends are getting bank accounts at purely online banking institutions. It only makes sense for me to look into an online bank, as I do everything related to banking online now.
Below are different things you should think about when deciding if you want to belong to an online bank or a traditional brick and mortar bank.
Do you want personal service?
If you are looking to see real people when you bank, then you probably want to stick to your brick and mortar bank. There is nothing wrong with that. Many want to deal with real people where they bank. Traditional brick and mortar banks can also be great because they usually offer a wide range of services, such as a mortgage or car loan, and seeing an actual person for these type of big purchases can be what most people are looking for.
If you are looking for better interest rates on your savings and checking accounts, online banks are usually where they are at.
Online banks usually don’t have fees, they don’t make you do certain things that physical banks do in order to get your bank account for free, and more.
Online banks are usually more competitive with the interest rates they offer because they don’t have the same high costs as a traditional brick and mortar bank. They don’t have the bank building to pay for, all of the papers and bank slips, and more. This saves them money that they can pass on to you.
Do you often deal with cash?
If you often deal with cash, then switching to an online bank may not be your best idea. With online banks, you cannot deposit cash because you cannot mail it to them, so this may be a problem if you receive most of your income in a cash form.
Some are afraid of identity theft.
Some think that with an online bank that they are more susceptible to fraud and identity theft with an online bank. However, that is just not true. Most brick and mortar banks still have online banking methods so either way all of your information is uploaded somewhere.
What type of bank do you belong to?
Image via Flickr by Alan Cleaver