Even though traditional brick-and-mortar banks remain a standard option, online financial institutions have grown popular in recent years. And there’s an incredible amount of online banks, financial apps, and digital-only banks available now, designed to give you better and faster control of your cash.
One of the most spotlighted benefits that characterize online banks are higher interest rates on savings accounts and lower bank fees. So, regardless of whether you need a debit card or looking for financial experts to guide your economic growth, it is time to leave the dark ages and switch to an online bank.
If you need a bit more convincing, here is our list of reasons to help you decide.
#1 Increased convenience
Online banks allow people and businesses to open and manage various accounts, quickly deposit and transfer money, make withdrawals, pay bills, and even manage payroll.
For example, a digital bank like Capway provides financial access and opportunities for literally everyone, all you need is a smartphone or a desktop application. That means that you can conveniently do all of your banking in-house, save travel and waiting time, and spare yourself from the hassle of adding bank runs to your busy schedule. In addition, opening accounts with them usually takes only a few minutes.
#2 Expanded accessibility
Users can manage their accounts whenever and wherever they want because the service is available 24/7. Moreover, suppose your job also requires a lot of travel. In that case, digital banking is most likely your best option due to its user-friendly, practical, and flexible framework.
In addition, many online banks also provide services that are easily accessible to people with varying levels of banking expertise. But seniors and those with disabilities have risen to the top of the priority list for digital banking as well. As online banks are doing everything to further enhance their platforms’ inclusivity, the goal is to ensure that everyone has a positive user experience.
#3 Lower or no fees and higher rates
Because online banks operate without branches, they tend to pay higher rates and charge lower fees than traditional banks.
Most traditional banks oblige you to pay monthly maintenance fees to keep your checking and savings accounts open. On the other hand, online banks do not demand any monthly payments for your checking or savings accounts. In addition, many online banks also allow you to take money out at any ATM without incurring a fee.
Most big banks tend to pay around 0.01% to 0.03% interest on your savings, which is basically nothing. Online banks, on the other hand, tend to pay higher interest rates than local banks so that you can get a bit of a bonus for your banking relationship. That being said, they usually offer high-yield savings accounts with interest rates at least ten times higher than a brick-and-mortar bank.
#4 Advanced technology and increased security
Digital banks often have an edge in technological innovation and advancement that physical banks can not match. For example, they usually use technologies such as digital account opening, application programming interfaces (APIs), video collaboration, P2P payments, and cloud computing.
Online banks are also safe, as they often go the extra mile to ensure that your money is protected against fraudulent activity. One way of doing so includes two-factor authentication tied to you as an individual. Another important aspect is that most major online banks are FDIC-insured. That means that if something goes wrong and the bank goes down, each customer’s assets are insured up to $250,000. That standard is the same at traditional banks and just as necessary for online ones.
#5 Better mobile experience
As we already mentioned, online banks use more advanced technologies, which means you can usually expect better and more full-featured apps. Of course, most offer standard tools such as mobile check deposits, peer-to-peer payments, and sending money within minutes. But that is not all.
More and more digital banks offer advanced tools such as personalized financial advice, savings tools, big purchase calculators, or even virtual assistants who can help you decide what extravagant expenses you can afford. Simply put, an online bank is a better choice for those who want to do a lot from their phone or computer.
The bottom line
Whether you are an individual or a business, you miss out a lot if you have not made a switch to online bank services. The above advantages should convince everyone that moving to an online bank is the best financial choice you can make in 2022. With that in mind, make sure you open an account with a great online bank today and start reaping the benefits that only digital banks can offer.