Do You Need an Online Banking Account with a Brick-and-Mortar Location Nearby?
While online banking has become as common as the brick-and-mortar option, many people still fear online transactions. There seem to be many reasons why tangible banks will always exist, even though online banking will continue to grow and service customers. Here are some of the benefits of each option that people easily overlook.
Online Banking Account
E-banking systems must be vigilant to counteract personal identity thieves, server downtime and encryption. Here are some key elements of a great online bank account to consider before you open an online banking account.
- How will the bank alert you if there is suspicious activity?
- How does the bank verify your identity each time?
- Does the account allow you to create a withdrawal maximum amount for each day?
- Does the online bank have a good track record with the federal government?
- Are all deposits insured?
Online bank accounts allow people who are on-the-go to monitor account activity from the office, plane, or even Tahiti. Also, the mobility of online banking lets people deposit checks without a long drive to the bank, and to transfer funds when they’re desperately needed.
“Whatever happens, don’t follow the light”. At work by willismonroe, on Flickr. This work is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
Brick-and-Mortar Banking Locations
Having a physical bank is beneficial when you just need a little human interaction. Sometimes problems seem too great to be dealt with online or even over the phone: being able to access a human being who can verify your identity physically is reassuring. Here are a few other benefits of old-fashioned banking:
- Customer service agents will learn your name and habits.
- It’s easier to be understood in person, especially if you have a thick accent.
- Cash deposits are simple with physical banking locations.
- You can get a physical receipt without even clicking print at a bank.
- Most banks still offer free magnets or lollipops.
Choosing a Bank with Both Options
While physical banks are best for older folks and those who don’t use the Internet, the best option seems to be online banking for most people. The Federal Deposit Insurance Corporation has published this information to make online banking safer for consumers.
Choosing a bank with both online and physical services often means your interest rates won’t yield the same returns as an online-only bank. However, if you need human interaction or computer assistance, physical banks will be around for a long time, yet.
Avoiding Common Banking Pitfalls
Remember that many banks have prohibitive fees if you choose an online-only account and then choose to go inside of the bank for service. Here are a few of the other catches to watch for when choosing an account:
- Annual Fees: While common, you should be clear on the expected annual dues before signing up.
- Account Modification Fee: If you change account types (for example, from online-only to classic) many banks will fine you for the service.
- Card Replacement Fee: Losing a card can cost you cash with some banks. Check into your bank’s policy before you sign-up, and consider how forgetful you are, too!
Both online and brick-and-mortar banks have benefits to consider, but ultimately the choice is personal. Consider your needs and daily routine when you pick a bank.
