Online Banks vs. Traditional Banks (Which is right for you?)
Aside from the option of banking at physical financial institution you can walk into there is the option of banking online. The advantage to online banks are that, due to them not needing actual employees, or buildings or anything of that nature, they have less overhead and can offer better interest rates on investments opportunities as well as interest bearing accounts. There have been some concern amongst customers in regards to identity theft, however the online banks know this concern and it’s importance and has gone through great lengths to be sure (and prove) that your money and identity is just as safe as if you were using a brick and mortar bank. The truth is, because of the technical skills of a lot of thieves, if a thief really wanted to steal your identity they could do it through computers that access online bankers information as well as brick and mortar bank customers information. The key is to take precautionary measures to be alerted when there are suspicious transactions on any of your accounts.
Net-Only Banking
Online banking isn’t for everybody. It has its disadvantages. For instance, the majority of the Net-Only banks, or Online banks, only allow access to tellers through email. Therefore, you won’t get an immediate response but instead have to wait for them to answer your email. There used to be a problem with having to make your deposits by mail, however a lot of Net-Only banks are now making ATM’s available to their customers allowing immediate withdrawals and deposits. Even though the disadvantages are slim to none it is important to go to the website of the Net-Only bank you are deciding on choosing and make yourself familiar with their site and the way they operate. You may find that you will be able to become accustomed to online banking or that it is just not right for you.
Why Choose A Net-Only Bank?
If you find yourself on the fence about Net-Only banking some things to consider would be if you travel a lot or have to relocate often a Net-Only bank will work for you due to you not having to worry about it being in the region you are moving to. With Net-Only banks, they go wherever you go! Also, as previously stated, Net-Only banks offer lower fees and better interest rates than brick and mortar banks. On top of these advantages, Net-Only banks also offer the same services as brick and mortar banks such as online bill pay, applying for loans, purchase certificate of deposits, transfer money and of course manage your account online.
I have a savings account with a Net-Only bank simply because I wanted to try it out and I must say so far so good. It is pretty much the same as a regular bank however I did get a sweet interest rate on my account. And to my surprise communication is not just through email, there is a 1-800 number I can dial if I need immediate assistance with my account. If you feel comfortable with online banking I recommend opening at least a savings account so that you can take advantage of the higher interest you can get!
Photo by: -sou-
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March 8th, 2009 at 1:12 am
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March 23rd, 2009 at 9:56 am
I think the perfect situation is a mixture of both online and brick and mortar banks. Obviously, you’ll get the best rates and convenience from online-only banks, but every so often, you’ll probably need either a local ATM or local service.
I use a checking account from a brick and mortar as my main account, and then transfer money from their automatically into a number of different online savings and checking accounts.