The people’s experience is going great with online banks due to the growth of bank’s day to day facilities that make users happy and convenient. There are many reasons why users are active on online banks more than active on physical branches that we will discuss later. Best online banks can be easily chosen after discussing with our financial advisor or financial planner, financial advisors are most of the bank’s consultants who are always ready to support their bank users.
Online banks are closest banks of yours for which you don’t need to take out your extra time to reach there for many purposes like opening checking and savings accounts as well as business accounts, CD, and money market accounts, also apply banks related products like cheque books, ATM Card or debit card from sitting at home because the banks situated in your mobile phones through different apps.
12 Benefits of Online banks
Here are some benefits that you should know if you are planning to connect with digital banks or for existing customers who don’t know more about the online banks:
- No need to pay regular fees on savings account: 80% of online banks don’t ask to pay various fees for account existence such as maintenance fees, overdraft fees, ATM fees. The remaining % of online banks ask for these fees but lesser, they also can not charge maintenance fees.
The physical branches of financial institutions charge all those fees because they have to take out bank place expenses, bank officers salary’s expenses, and many more.
- Get higher interest rates on savings capital: Usually connected with financial institutions, you only get some part of the interest on your savings capital due to banks’ other expenses. But those digital banks offer higher interest rates on savings capital so that users can earn from home and for them, savings accounts could be considered beneficial. With high APY, users can save more money in their savings account for future investment or other purposes.
Along with savings accounts, they also offer high APY on other accounts like checking, CD, and money market accounts that will increase your capital. The APY or interest rate is decided after analyzing the financial market situation.
With online banks, you can save more money in the upcoming few years so find out the adjustable online banks that exist in a competitive market that offer high APY on savings accounts.
- Affordable accounts: All the accounts are affordable if you are going to connect with online banks due to no additional fees or no required minimum balance to open an account. You can hold multiple accounts at different online banks for securable transactions.
- Get customer support service: Digital banks always stand for their old and new users to clear doubts, solve multiple problems, solve technical errors, and guide. With Online chat representatives of online banks guide users to choose the convenient online banks by understanding instructions.
- Offer technical support: Online banks offer technical support when the user needs it. They are available every time whether it’s night or day. Customer support representatives are the supporters who help customers to avoid technical errors.
- Always get a notification for each transaction and acceptance: The online banks give notifications for each transaction and acceptance so that users can be familiar with that. Also, each transaction and acceptances are recorded in the online bank history for future verification.
- Safest place: Online banks are the safest place if you use them correctly and always connect with them. Don’t share the PIN code, or password of your online bank to avoid skimming.
- Offer more extra features: Online banks offer extra features to run savings and checking accounts like budgeting and saving tools, accounting and management tools for daily verification and updates.
Those additional features aren’t provided by financial institutions due to less updated and more advanced features.
- Security features available: More security is provided by the online banks because they are insured by the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA). The FDIA provides up to $250,000 for each account holder.
- No foreign transaction fees: Online banks do not pay for foreign transactions rather other financial institutions charge for it.
- No minimum balance requirements: Every physical bank or financial institution charges penalties on zero account balance of savings accounts but digital banks do not charge penalties on zero account balance, they make customers feel comfortable.
- Get rewards: Online banks also offer products such as credit cards, debit cards or ATM cards, and other products. Even users can apply for these by sitting at home and don’t need to go out.
Top 6 best online banks
1. Axos Bank(most preferable online bank)
- Offer to join a joint account.
- Get a higher rate of interest on saving’s capital but low on CD.
- Minimum balance is required ($250 to start a savings account and $50 to start a checking account).
- Reimbursement of ATM fee.
2. Ally Bank(Best for improving financial life)
- Provide High-interest rate on checking and savings capital above the market offers.
- Charge very low fees on a transaction.
- Offer multiple products like banking, investing, financing, lending.
- Allow making a budget and scheduling features.
- No minimum balance is required.
- No ATM Card with saving account.
- No need to pay maintenance fees.
- Provide affordable home loans rates on home loan refinance.
- Customer support communities are available for your personal and financial wellness during 24 hrs.
- Allow opening various accounts such as checking and savings accounts, and cash deposits.
- Helps to achieve saving goals.
- Helps to secure and collect emergency funds.
- 55% of USA citizens like to use this bank for budgeting and saving purposes.
- Better than a local bank.
3. Synchrony(online banks for small business)
- Fixed and high rate on savings.
- Access cash through ATMs, debit cards, and more products.
- No minimum balance is required.
- Allow opening various accounts like money market accounts, certificates of deposit.
- Controllable management bank app.
- Use to transfer, acceptance, or deposit from anywhere and also allow check balance from bank transaction history.
- Insured with FDIC.
4. Capital one(protective for credit score)
- No cards impact on credit score.
- No minimum balance is required to continue an account.
- No fees are charged on accounts.
- Advanced card features that make financial life easier.
- Offers tips to spend and save money.
- Charge competitive rate.
- Best for students to open a saving account and transfer payments to anywhere.
5. Discover(true only banks)
- Brighter online banks for credit cards, home loan equity, personal loan, student loan, debit cards, or ATM cards.
- No maintenance fees and overdraft fees plus transfer fees whether it is domestic or foreign.
- Free debit cards offer.
- Allow opening multiple accounts except for CDs.
- Do not allow to earn interest.
- Get 1% cashback on $3000 purchases, 5% cashback on a holiday trip.
- Resolve technical errors.
6. Charles Schwab(Best planning online banks)
- Helps to make financial plans with planning tools.
- Low costs.
- Robo advisor who offers to manage a portfolio.
- Charge monthly subscription fee but no maintenance fee and transaction fee.
- Helps to improve trading activities.
- Perform as a financial consultant that helps to find your needs.
- No minimum balance is required.
- Offer low rate of interest.