Banking (MP) Online banking offers a welcome change from the grind of physically balancing your checkbook and dealing with crowded lines. Banks that provide services exclusively through the Internet have some distinct advantages over their brick-and-mortar competitors. Because online banks don’t have to cover the cost of branches and tellers, they can be more generous with interest rates. The national average rate for savings accounts, for example, was recently a scant 0.09%. Some online savings accounts yield 1% or more.
For the same reason, online banks have a leg up when it comes to fees. Fewer than half of online-only checking accounts charge a monthly fee, according to personal finance site Wallethub. Some online banks reimburse the ATM fees other institutions charge. But “internet-only banks appeal to customers comfortable with technology who do not feel the need to visit a brick-and-mortar locations,” according to BankRate.com.
Reasons Online Banking Works Better
If you regularly need services best handled at a bank branch, such as depositing large sums of cash or access to a safe-deposit box, an online bank account isn’t for you. . But if you’re looking for a great place to stash your emergency fund or earn high yields on your savings and checking-account balances, then join fifty-one percent of U.S. adults, or 61% of internet users, who bank online says a Pew Study. We think online banking is worth considering because here’s what you get:
- Bank at your convenience – Manage your accounts on your schedule, 24/7. All that needed is a computer, tablet or smartphone with Internet access.
- No waiting in line at the bank – You can do many of the things you do in the branch, online. For example, pay bills and transfer funds. Many banks offer on-line call service to answer any questions you may have quickly.
- Deposit checks easily – Many banks have the capability to allow you to deposit checks using your mobile device camera.
- Save money – Online bill pay saves on the costs of stamps and check orders. And with fewer runs to the branch, you’ll save on gas, too.
- Review your account activity and get up-to-date balances – You can see checks that have cleared and monitor your balances in real-time. If a check hasn’t cleared or a deposit not posted, you can respond quickly and avoid potential overdraft fee. That’s more savings!
- Pay your bills – No more hassles with paper statements, checks and stamps. Paying your bills online is convenient, quick and free. You can also set up automatic recurring payments for monthly bills to help avoid late charges.
- Transfer funds between accounts instantly – If your checking account balance gets low. You can transfer money between accounts easily with online banking.