If you are new to online banking, you are probably excited to be able to save time by banking on your computer, tablet or phone. A growing number of people are ditching traditional banks and moving onto online-only banks. This way they can save time by not physically having to go into a bank. 

Some problems still exist with online-only banks. Reading below will help you weigh the advantages and disadvantages of online banking and help you decide if it is right for you.

Pros Of Online Banking:

  1. Online-only banks may frequently charge fewer fees.
  2. They usually offer better interest rates since they do not have the overhead cost of having physical branches to maintain. 
  3. Most customers are in fact quite pleased with their online banking experience.
  4. Most online-only banks cover higher rates of interest on savings.
  5. Clients frequently have access to improvements in banking technologies faster than they would with a conventional bank.
  6. You are able to get your direct-deposited funds a couple of days early. Some banks provide premature immediate deposit, which lets you get your direct-deposited funds a whole two days before they have even arrived at the bank.
  7. If you do not use direct deposit, you are able to choose an online bank which lets you deposit checks (using a PC or mobile device). These deposits will begin earning interest quicker.
  8. The number of online banks are increasing, which gives you more choices.

Cons Of Online Banking:

  1. There still might be some hiccups with handling your cash online.
  2. You may have to send in a signed document to verify your account.
  3. Online-only bank accounts have traditionally made it more challenging to invest your money.
  4. Your funds are a bit less accessible
  5. You might sometimes have difficulty with customer support
  6. Issues are easier to fix in person
  7. You never know how helpful the person you will talk to will be for your online bank.
  8. Online bank systems can crash

The Most Important Thing

Unless will have a hard time with any of the cons mentioned above,  you could probably gain from having an online banking account. There are lots of reasons to think about online banks: they offer you a simple way to bank at no cost, they are your best choice for high interest prices, and they generally make life easier in different ways. You might not ever encounter some of the issues mentioned above and your general experience will likely be fantastic. However, you should know what to expect.


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