Should You Use Bank Accounts Online
Many people are very wary of using bank accounts online but they actually can be quite safe and there are many advantages to using them. Online accounts can be incredibly convenient and many of them will offer a higher interest rate than an offline bank account. If you are opening a bank account down at your local street you would probably be careful in choosing which bank to deal with and you would look at what each one offered. You should also do this with an online bank account, be careful about which bank you choose and be diligent in your research. In this article I am not referring to brick and mortar banks that you can visit down the road and that also have online websites, I am talking about banks that do ALL of their transactions online. Online banks have a lot less expenses than brick and mortar banks and so they are able to pass on those savings to their customers. As such, online banks will often offer higher interest rates on their savings account. Interest rates are only one of the things you may require with online banking so let's take a look at some other factors you will want to know about when opening an online bank account.
1. The first thing you will probably look at is their interest rate and you want a bank that will offer a good rate.
2. How accessible are your funds? Can you get to your money 24/7 from anywhere? What transaction fees are charged when you deposit or withdraw money? Can you only use certain ATM's and what fees will you be charged for using other ATM's. If you can only use certain ATM's are there many in your area.
3. You will want to know if you can set up multiple accounts. You might want a savings account and a checking account and you will want to be able to transfer money between them. It is very easy to manage your money when you can transfer it between accounts online. If you keep your money in a checking account you may find that you spend more but if you keep it in a savings account then you may be less likely to spend. When your accounts are linked you can transfer money into your checking account if you do need it for something in particular.
4. Does the bank offer online bill pay, mortgage or any other service? Banks offer many different options these days and online banks will sometimes have as many options as your offline banks. If your online bank offers other services, even if you don't require them right now, you will have the option to use them in the future if the need arises. There are many good reasons why you should open an online bank account and as long as you do your research on the bank first you should get a good deal. You might want to compare a few different online banks before deciding which one to use so that you can get the best service and best interest rate possible.
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