By: Jasmine York, contributing writer (@jasmineyorkthewriter) With so many other resources readily available at our fingertips, it was only a matter of time before internet banks would be made available. In recent years, there has been a rise in the number of online banks in the nation and a spark in the number of people switching to them. Below I’ve highlighted the pros and cons of using an internet-only bank to help you determine if they measure up to their traditional counterparts and also pinpoint if this is a better option for you. Pros: –Accessible anywhere there’s internet: Rather than rushing across town before the banks close on a weekday or being inconvenienced when traveling out of town, you can easily access your online bank any time and anywhere there’s internet (in or out of state or even out of the country). –Less fees: Internet-only banks usually can afford to charge less fees (if any) than traditional banks because they don’t have to foot the bill for expenses related to having a physical building. For this reason, there’s no ATM withdrawal fee (yes, you’ll get a debit card to use at any ATM), no minimum balance fee, or annual account fee. Additionally, while traditional banks charge a $35 overdraft fee (up to 4 times a day), some online banks decline the purchase while others only charge $9/day for an overdraft. –Easily link to other accounts: With the touch of a button, you can easily transfer money to other accounts in a physical bank, IRA, CD, etc. Cons: –Not every internet bank is insured the same: When looking into online banks, make sure the one you choose has FDIC insurance like traditional branches, which should insure up to $200,000 of your money in an account. –Delay in depositing checks: Unless you direct deposit, some internet-only banks require that you send your deposit through the mail, which means it will take a few days before you see the money. However, if you have a separate account at a traditional branch, you can deposit the check there and transfer the money to your online account. –Loss of teller-client relationship: While this is a personal preference, you are only able to receive help over the phone or online in your time of need. Hopefully, the information provided helps you weigh in on whether or not internet banking is a better option for you. To find a trusted internet bank, check out the list of top ten online banks of the year at www.online-only-banks-review.toptenreviews.com.
