Why should you use Online-Banks: Here are the reasons
- Posted on August 16, 2020
By Karan Kapoor
Disclaimer: This article is about online-banks, not online banking!
|
Key Points
|
|
Online - Banks provide higher interests, yearly
|
|
Online banks provide free checking
|
|
Online-Banks is the future of banks
|
|
They are getting advanced every day
|
They are mostly similar to the traditional banks, yet some key distinguishing features make them different from other banks, and favourite to tech-savvy customers. Online banks are the banks in the digital world without a physical location. They will allow you to make transactions over the internet, from any device, a phone, laptop or a tablet. If it is connected to the internet, you can use it. You must be wondering, how is it different from normal brick-and-mortar banks, because nowadays even they offer such services.
We will tell you about these differences
Free Checking Account
The main reason to use online banks is free checking. A person with an account on online banks is free from the fees imposed by banks for having an account. In simple words no maintenance fee.
There are some banks and credit unions, who offer similar facilities, but these are on a small scale, and at remote locations where the population is also less.
In many normal banks, you have to show a paycheck that is gonna come every month, in order to keep money in your account.
Interest Rates are Higher
If you have a savings account or a certificate deposit in any online-bank, you will enjoy substantially higher Annual Percentage Yield (APY). They provide such facilities because online-banks don’t have any physical branch so that is one expense which is beneficial for both the bank and the customer.
In online banks we have a variety of banks that offer higher yields, so choose wisely. People normally open accounts in various online-banks and keep on transferring money from one to another.
No gas money used to reach a branch
These banks have no physical location and everything is transparent and on the internet. This is only beneficial for you, you save your gas bill, and some time to give to yourself. If your issue is not resolved they have their own chat service or toll-free numbers to resolve your issues, and as the competition is at large, service quality is also increasing. They are upgrading day by day.
Technologically Advanced
These banks have to create an interface and build a correct panel and backend and server space to provide optimal service, so any amount they earn goes in service of people. They offer a variety of free services, like free money transfer and online bill payments(free of fee). They also have a greater network of ATMs for your convenience. They also work hard to create a good service, in optimal net usage.
The question is, they offer so many services but do you want to move towards online-banks?
These banks work day and night to secure their platforms, so they are free from cyber threats. But these banks once or twice face such a problem, which has reduced their market.
Most people prefer banks that will have human touch rather than everything online. The more tech-savvy a person, it is suitable for those.
The banks are slowly turning to online, and as this Covid19 pandemic has taught us to stay home. This is a step to the future! where we know most of the functions are gonna happen online. The normal banks are now moving towards online banking, yet they aren’t entirely online-banks.
Further readings...
