Online banking offers a host of benefits that can make managing your financial life much easier. If you’re interested in finding the best online bank—but you’re on the fence about whether online banking is right for you—here are some of the most significant advantages to consider.
Convenience
One of the chief benefits of online banking is the ability to access your accounts from practically anywhere. As long as you’re able to log in to online banking or mobile banking, you can check your balances, pay bills or transfer money between accounts.
You can also deposit checks remotely and set up notifications or alerts, all without visiting a branch. If your debit card is lost or stolen, you may be able to log in to your mobile app to deactivate the card so no new purchases can be made. These are tasks you can do with the tap of just a few buttons.
While online banks may lack branches, many of them offer ATM access if you need to withdraw cash. In short, online banking keeps you in touch with your money whether you’re at home, out to dinner or taking an extended trip.
Added Features
Online banking and mobile banking allow you to perform a wide range of functions. But you may get more than simple account management.
Some of the best online bank accounts include features such as:
- Goal trackers
- Automated savings
- Financial calculators
- Budgeting tools
- Person-to-person payments
- Integration with mobile wallet apps
All those features can help you feel more in control of where your money is going. Having built-in trackers or automated savings can also help you get into a regular savings habit if that’s something you’ve been struggling with.
Cost
Online-only banks don’t have the same overhead costs that traditional banks do. That can be a huge benefit if you’re tired of paying high fees.
Many of the best banks online charge no:
- Monthly maintenance fees
- Minimum balance fees
- Person-to-person transfer fees
- Incoming wire transfer fees
- Foreign transaction fees
- Overdraft fees
- ATM fees
Some of the best online banks even refund your foreign and domestic ATM surcharges up to a certain amount each billing cycle. The less you pay in fees, the more of your hard-earned money you get to keep.
Online banking can pay off in a different way if you take the money you save on fees and deposit it into a high-yield savings account. Online banks can offer rates that are much more competitive than brick-and-mortar banks, owing to their lower overhead costs.
Record Keeping
Keeping track of expenses is crucial for creating—and sticking to—a realistic budget. Online banking simplifies that task by letting you review credit and debit transactions at a glance.
You can easily filter your account details to look for specific transactions or review purchases made over a certain period. As mentioned, some of the best online bank accounts offer digital tools that let you categorize expenses for easier budgeting.
Other Benefits of Online Banking
Online banking offers many advantages. Here’s a quick look at some of the pluses of banking online:
- It’s easy to open accounts without going to a branch.
- Automatic bills payments save you time and postage.
- There’s no need to wait in line for a teller.
- You can pay bills with no fees.
- Automatic savings deposits can grow your money faster.
- Online banking can integrate with budgeting apps.
- You can monitor your account for fraud from anywhere.
Online banking can take some of the hassle and frustration out of keeping up with your accounts. And it’s a secure way to manage your money.
Online banks may use the same level of encryption as brick-and-mortar banks and they can offer enhanced security features, such as multifactor authentication. Those measures, along with taking basic steps to protect your online banking security, can keep your account information safe and out of the hands of hackers.
