3 Advantages of Opening an Online Bank Account

Finance

Are you feeling slightly hesitant about opening an online bank account? If yes, you probably aren’t convinced that online banking is better than traditional banking. But with an online bank account, you can say goodbye to visits to the bank and long queues. Plus, you can bid farewell to the post office and stamps too.

All you’ll need is a computer or mobile device, a good internet connection, and a strong password, and you’ll get access to banking services from anywhere. If you’re still skeptical about online banking, here are some more benefits of the service.

Here are the key benefits of online banks:

Lower Fees

Online banks don’t have to pay for overheads like utilities, rent, and office supplies. As a result, many have low or no fees. For example, most online banks don’t charge monthly maintenance fees, while others don’t charge overdraft fees either.

Higher Interest Rates

Besides charging low fees, online banks also offer better interest rates than traditional banks. Because they don’t have to pay for significant operational expenses, they can pass on those savings to you. Whether you’re looking to open a certificate of deposit, checking or savings account, the experts at SoFi recommend opening an online bank account because it can offer you better interest rates than a traditional bank account.

Regular Bank Services

If you feel uneasy about switching to online banking because you think you won’t receive regular banking services, you don’t have to worry. Many online banks still offer the features you’ll find at brick-and-mortar-banks, such as:

  • Security: Online banks are just as secure as traditional banks. Many offer security features, such as data encryption, account monitoring, and two-factor authorization to keep your money safe. However, while these features can safeguard your money, you should still use a strong password and avoid using common names, dates and words. You should also avoid using public networks and regularly update your antivirus software to protect your account from malicious threats.
  • ATM access: Most online banks provide ATM access via networks like Allpoint, SUM, COOP and MoneyPass, which have thousands of surcharge-free ATMs countrywide. Plus, if you need to make a withdrawal from an ATM outside the network, some online banks will reimburse you the ATM fees. However, not all online banks provide ATM access. So, before you open a digital bank account, inquire whether the bank offers ATM access to avoid any inconveniences. As per the experts at SoFi Invest,  they have “55,000+ fee-free ATMs within the Allpoint® Network.”
  • Customer support: If you require help, most online banks provide excellent customer support via phone, website live chat, and the bank app. Many also offer round-the-clock support, which can come in handy if you need help with an urgent issue.

Final Word

Online banking is an excellent alternative to traditional banking. With a digital bank account, you’ll benefit from lower fees and receive higher interest rates on your savings. Plus, you’ll still receive several of the services offered by brick-and-mortar banks. And best of all, you’ll be able to make and monitor transactions from wherever you are. If you’re looking to avoid long lines at the bank and lower your banking fees, consider switching to online banking today.

TechyStories Team

TechyStories is the Leading Media Publishing Platform. It Cover various topics of Tech, Business, Digital Marketing, Software/Apps, Gaming, Health.

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