Online-Only Banks Have Finally Come of Age
A familiar scene at this days is to go to the bank at lunch time and be expect to waiting in line to be attended. May be you be there to make a simple deposit or to complaint about a charge in your last statement that you not recognize or a service charge you noticed (huummm, which annoyingly wipes out any interest you earned!). You think, there’s got to be a better way. Well, there is, but you won’t find it at the bank around the corner. The first only virtual bank were generally limited to high-yield savings account, but the reality today is that some web banks offer free ATM’s and checking writing. Web banks can offer higher yields and charge lower fees! Why sacrifice a fatter balance just so you can wait in line…
Park Your Cash at an Online-Only Bank, and Your Yields Can Be Much Than 10 Times Greater!
While internet bank accounts can help you earn more interest, you have to make sure you get the right one. Compare the most common features of internet bank accounts and decide which ones are most useful to you.
What exactly is an internet bank account? For our purposes, it means an account that’s only offered online. While you may be able to bank with the same institution the old-fashioned way (in person), internet bank accounts are usually only offered to online users. Aside from the ability to bank in your bathrobe, what are the major advantages of internet bank accounts? The answer is simple: Annual Percentage Yield (APY). By conducting your transactions online, you save the bank money which it ideally passes on to you in the form of higher savings rates. When consider to save some dollars and even earn some cash with for Internet Bank Accounts is a good idea to look at some key features. Not every bank offers everything, so you have to decide how important these are to you.
1) APY. Usually the most important attraction for rate shoppers.
2) Access to the money. If you want to take it and spend it, how much work do you have to do?
3) Number of linked accounts. Can you set up a network of accounts and zap money back and forth through your internet bank account?
4) Additional products and services. Can you buy CDs, get a mortgage, or pay bills online?
5) Leverage of existing banking relationships. If an institution that you already deal with has an internet bank account, you may qualify for some extra perks by keeping all of your business in one place. But remember, the reality now is that Internet Bank only saves you many “fees” that can be your today’s headache.
6) Customer service options. How easy will it be to get questions answered?
7) Automatic savings plans. Can you put it on auto-pilot and let the money accumulate automatically?
8) Safety and security. Is the bank FDIC insured, and do you trust their security process?
Once you compare the features you can decide which one is best.
For example, you may decide that APY is most important to you. Therefore, you wouldn’t care about any other options – you’d just pick the bank with the highest APY. Online bank accounts are great. They typically offer high rates for web-savvy saver. However, the high returns come at a cost. You need to know what the tradeoffs are to avoid unpleasant surprises. Here are a few reasons that you should consider:
1. Customer Service
With a brick-and-mortar bank, you’ll likely have some familiarity with the staff. Does this matter? It’s easier to get good service if you know the staff and they know you. You can pick and choose who you deal with. However, if your online bank account offers any good phone service, you can take your chances. You might get somebody helpful and knowledgeable, or you might not.
2. Speed of Clearing
The internet is supposed to make things faster. However, you might have to wait a long time for checks to clear. You certainly can’t ask for a cashier’s check if you’re in the middle of a crisis and you need settled money yesterday. Likewise, deposits to your online bank account can be slow.
3. You Can’t Spend It
You can’t take it with you when you go, so why not use some of that money? Online bank accounts make it hard to spend your money.
Any way, online only bank is a good reality and a great alternative for leave the corner branch behind. Another online advantage should be what would you rather pay = $130 X $0 with ATM-fee reimbursement plans, going to another bank’s cash machine won’t cost you a dime at many virtual banks.
* Article edited based in the source from Money Magazine and the site about.com.