For a lot of people, finding the right banking solution can be easier said than done. This is especially true for those who have had a bad experience or two in the past with specific banks, which can be enough to discourage someone from choosing a particular banking solution ever again. As of late, there’s been a huge push for bringing back the days in which small banks held a great deal of importance, and it has indeed changed the landscape of the banking industry to an extent. This being said, small banks aren’t perfect, and they’re not right for everybody.
While small banks have certainly gotten a great deal of attention over the course of just the past few years, they’re not the only contenders for alternative banking solutions. Online banks are quickly gaining ground, with thousands of individuals signing up for accounts each week. To many, the idea of an online bank may seem like somewhat of a risky scenario, but they’re established to the point where security can be expected to be similar to that of any banking institution, whether it be physical or virtual in nature.
There are a number of reasons why one might wish to consider looking into getting an account at an online bank, many of which are not yet common knowledge. Understanding the benefits of of online banks over small banks will get you a lot of mileage in regards to pushing your personal finances in the right direction, and they’re more straightforward than you might think.
1. Improved rates
One of the biggest benefits associated with having an account at an online bank is that they typically offer better rates than traditional brick and mortar institutions. Because online banks usually don’t need to spend nearly as much money on overhead as regular banks, they can pass the savings along to their customers in ways that can sometimes seem too good to be true. You can expect to find
You can expect to find high-yield checking accounts, CDs, Savings Accounts, better rates on loans and mortgages than you might find at traditional banks and accounts that don’t require you to put in a minimum balance. For those who are looking to make money on interest, online banks can be excellent options and will typically feature far better rates than traditional banks.