This is an age when consumers want maximum convenience at the lowest cost possible. This includes dealing with a bank and performing bank transactions. As the desire for convenience has grown in the Internet age, more and more people are leaving traditional banks, and they’re setting up online only banking accounts. These accounts have several positive features, but there are some negatives to online banking as well.
The Positives of Online Banking
One of the favored features of online banking is ease of use. An account holder has the opportunity to perform banking transactions from any device that has access to the Internet. The account holder can use a phone, tablet or laptop. When people are on a trip, the convenience of an online bank allows account holders to access their accounts no matter where they are around the world.
Online banks usually provide account holders with very high interest rates on savings accounts compared to traditional banks. Traditional banks currently pay under one percent interest on savings accounts. Online banks often pay two to two and one-half times more than this rate.
Another important positive for online banking is in the area of fees. In order to attract more account holders, online banks charge fewer fees. The fees they do charge are traditionally lower than traditional banks.
The Downside of Online-Only Banking
Using only online banking will be a negative experience for those who like the personal touch when dealing with businesses. At a traditional bank, there are branches at different locations that are staffed with professionals to help you make transactions. They also are there to help in those situations when customers are having difficulties with their accounts.
When a person has online only banking, customer service is often conducted through email or through a call service center where the customer may be on hold for some time.
Another drawback for banking only online is ATM fees. Since the online bank will not have branches throughout the country like large traditional banks do, the account holder at the online only bank may have to pay additional fees for accessing another institution’s ATMs.
The choice to bank at a traditional banking facility or only through an online bank often comes down to personal comfort. Many account holders feel better when there is someone in their area to talk to. Others would rather deal with technology.