Online banks have become increasingly more popular over the last few years, and for several good reasons. Five of those reasons are listed below to help you decide if an online bank is right for you.
1. You Can Get a Higher Interest Rate
A lot of banks these days are really disappointing when it comes to the interest rates that they have to offer. However, you will find that interest rates are higher when you open up an account with an online bank. Most banks will offer around 0.08% interest, but an online only bank such as Ally will offer as much as 1.90%. If you are hoping to grow your money without having to put any effort into it, all you need to do is open a savings account or a certificate of deposit (also known as a CD) with an online bank, and then sit back and relax as your money accrues interest monthly.
2. It’s Environmentally Friendly!
Yet another great reason to start using an online bank: it’s eco-friendly! There are no branches to visit, everything is digital, and you don’t have to worry about a ton of paper documents, as everything you need is right in your online account. If you want to be a more eco-conscious consumer, online banking is right for you.
3. It’s Super Convenient
People are busier than ever, which is why online banks are their go-to choice. Without having to visit a physical location, you can do all of your banking while you are on the go, while you’re at work, and while you’re relaxing at home. The best online banks offer stellar customer service, so you can reach representatives by phone, email, or chat whenever you need them. And the fact that everything is online means that you can access your information quickly and easily at all hours of the day and night, all while saving time.
4. It’s Great for Small Businesses
Online banking isn’t only great for individuals; it can also provide a host of benefits to busy small business owners. For example, it’s free to open your account, and there aren’t any extra hidden fees, which often come with the use of brick-and-mortar banks. Plus, you can do things like organize your downloadable reports, transfer your money quickly and easily between different bank accounts, and schedule your payments in advance.
5. You Can Open a Free Checking Account
Finally, online banks offer free checking accounts that can be difficult to come by at regular brick-and-mortar banks. Rather than having to qualify for a free checking account by doing things like maintaining a high balance in the account or having checks deposited automatically, online banks give you free checking accounts without having to put in the extra work. Plus, you might even be able to open a checking account that earns interest, too.
Ready to Start Using an Online Bank?
If you are ready to start using an online bank, rest assured that you have many options to choose from. Find the bank that is right for you, and then see how easy it is to manage your money digitally!