Choosing the right bank for you has always been tricky. There are so many out there. With the introduction of online banks, it might feel like you’re drowning in options. With more and more things taking place online, it has never been a better time to switch to an online bank. But how do you choose the right one? Here are a few of the most important things to keep in mind.
1. Look for FDIC Insurance
One of the most important things about a bank is security. You can click this link for a review on a reputable online bank. It is important that you make sure the online bank is protected by the FDIC. The FDIC (Federal Deposit Insurance Corporation) insures people’s accounts against bank failure. You are protected for amounts up to $250,000. Most online banks have FDIC insurance and will openly flaunt this on their website. If you do not see it, you can find the information elsewhere online, but it is incredibly important that you look for this information. It is your responsibility to make sure that it is insured by a reputable insurer such as the FDIC.
2. ATMs?
ATM fees are the worst. They are the reason so many people go without physical cash. This is incredibly inconvenient when you need cash. Transitioning to an online bank doesn’t mean that you should be denied the use of physical cash. Look for an online bank that offers you access to ATMs where you aren’t charged when you withdraw cash. Also, be sure that they have quite an extensive network of ATMs for you to access across the country.
Some online banks do not offer physical bank cards, which means that you cannot withdraw cash from an ATM at all. It is important that you think carefully about what you will be using your online bank for before you choose one. If your goal is to only use it as a place to keep your savings then you can disregard this point.
3. High-Yield Savings Accounts
One of the best reasons to join an online bank is because they are online. Online means less physical infrastructure. The lack of brick and mortar means that you can expect to be offered higher yields on cash savings. This comes with a few rules that differ from traditional, physical banks. For one, you can expect to be required to deposit a greater minimum amount in order to open an account. You can also expect to have to maintain a set minimum balance, as well as have automatic monthly deposits made into the account in order to maintain it. Remember that not all online banks are the same. Some online banks will not offer ATM features or debit cards linked to your account if you have a higher-yielding account.
4. Banking Products
It is important that you look at the products the online bank offers. Online banking is great for people who want a tailored experience that suits their banking goals. It is also a great way for you to focus on the aspects of banking that are important to you and leave the other aspects that are irrelevant behind. They offer a variety of products and services. You have access to the following:
- money market accounts
- credit cards
- currency transactions
- loans
- And a plethora of other financial services
You can control and interact with these aspects in ways you have not been able to interact with before.
5. Fintech Apps
Look for an online bank that has an excellent review of its fintech. You can easily read reviews online and on the app store. If the app has terrible reviews stay away. The app will be your main interaction with the online bank. If it is buggy and lacks a user-friendly interface, you will have a very hard time doing any banking. A good app will be easy to use and have all of the features you need. Also, keep an eye out for how tech support has handled any issues in the past. You can find all of this information in online reviews.
6. Help With Investments
If investing is your main goal, make sure that you look for a company that offers investment help. There are quite a few online banks that will help you manage your investments and help you invest in a balanced portfolio. They will do this by assessing your risk tolerance and financial goals and will invest accordingly.
Online banks are the way to go. Keeping these points in mind to guide you on your search for the right online bank for you will help you make an informed decision.