Why use an online bank?

Online banks compete intensely for new customers by offering some of the highest interest rates for savings accounts. They do this in part because some are Internet-only banks, without physical locations and thousands of employees to staff the branches of traditional brick-and-mortar banks. They pass these savings to their customers in the form of very competitive interest rates, and reduced loan rates, such as mortgages and home equity loans. Online banks can be completely paperless, sending you your monthly statements by e-mail.

Why else should I use an online bank?

Increasingly, we are turning into a cashless society. We pay our bills online, get our entertainment online, and pay for purchases online, so it is only natural that we also desire a virtual bank account. Maybe we are tired of having to drive to a branch location, park, and wait in line just to make a deposit. With an online bank, making a deposit is as easy as making a few mouse clicks. The time savings alone is enough to make people switch to an online bank, since you can do all the same things with an online bank as with your local bank, but much faster.

What is a "virtual bank"?

A virtual bank is another term for an online bank, with no physical branch locations. A virtual bank exists completely online.

How do I know if a prospective online bank is legitimate?

The FDIC has a bank locator tool that allows you to go online to see if a prospective bank is covered by the FDIC. If the prospective bank does not show up with the exact name and address of the bank in question, do not submit an application. You may also read bank reviews online, and ask family or friends if they have used the bank. Most people will know someone who uses an online bank.

How can I compare the interest rates of different banks?

The website offers many tools to compare banks, from sav

Mobile banking is possible now at any bank, but you can go a step further and open an account at an on¬line bank that has no brick-and-mortar office.

Mobile banking is possible now at any bank, but you can go a step further and open an account at an online bank that has no brick-and-mortar office.

ings interest rates to loan interest rates. You can select from a variety of criteria and compare fees to determine the best bank for you.

< Prev   CONTENTS   Next >