Over the years, the way we bank has significantly changed. With the advent of technology, we now have online banking. While traditional banks have incorporated internet banking in their banks, some banks are exclusively available online. You do not interact with any of their tellers face to face. While this may be a slightly new concept, some people have warmed up to it and are enjoying its perks. If you are new to the idea and would love to give it a go, here are a few things you need to keep in mind.
1. It Is Safe
The first thing everyone is afraid of is whether or not their money is safe if they are banking online. You do not need to worry. Online banks are as safe as traditional banks. No one will have access to your passwords or pins. One thing you need to be keen about, however, is the sites you put your bank information into. Since you will be transacting online, you are more vulnerable than the person who doesn’t bank online. Keep your passwords safe and ensure you use a secure internet connection when dealing with your bank account.
2. They Have Lower Rates
Compared to traditional banking, online banks have lower rates. There are those banks that might not even have fees. The reason for this is, they have no physical bank address, which might cost them a lot of money to run. You spend less when using these banks. While they might not have a physical bank address, many partner with traditional banks to use their ATMs. The move comes in handy if you would like to withdraw or deposit money in your account. Find out which ATMs you can use to access your money.
3. Know the Reputation of the Bank
Before you sign up for an online bank, take the tie to do your research. Since this is a new concept, some banks might still be struggling to future out things like security. While they are meant to be safe, not all of them are safe. Find a bank that has been in business for a while. You can also check out customer reviews on their services to know what you are getting into.
4. Know Your Deposit and Withdrawal Methods
The one hassle many online bankers have to deal with is depositing money onto their accounts. Since these banks cannot be accessed physically, depositing money into the account can be taxing. You might need to get a traditional bank account to send money to your online bank. For some banks, you might have to deposit a cheque or use a money order. If you do not know how to deposit money into your online bank, then it beats the point of opening one in the first place.
5. Ask for Banking Apps
For many online banking options, banking apps are the way to go. It beats the hassle of needing to log onto their website whenever you need to transact. Banking apps are safer and simpler to use. If you are undecided on which bank you should settle for, this factor can be a deal-breaker.
6. Interest Rates
Apart from lesser operating charges, banking apps are also known to have better interest rates. You will earn more from your savings in an online bank than in a traditional one. Find out what their interest rates are, especially if you plan on saving online. These rates can work to your advantage as you will end up with more money than if you were to use other options.
7. Do Your Research
Just like you would with a traditional bank, do your research before you settle on an online bank. Find out what their rates are ad their terms and conditions. Compare these factors with the other banks near you and settle for what works for you. More often than one, you will find that the bank you thought would work for you isn’t best suited for your needs.
Online banking is slowly catching up with us. In a few years, many transactions will be happening online. As such, having an online account at this present time will come in hand. If you are unsure of your online banking options, then you can talk to your local bank. They might have pointers on what will work best and what will not. It is important to evaluate your needs and go for the right bank for you.