How to Choose the Best Online Bank
Remember a few years ago when there were only local banks for us to choose from? Most of the time, we either chose a bank that was located near our home or workplace, so we could easily do our banking transactions. But with technology advancing in the Internet booming, the world of banking has taken a whole new direction. Internet banking is done through banks that are exclusively online. The key is choosing the best online bank that is right for you.
Online banks do not charge the high fees that a bricks and mortar bank would. Why? Well because they don’t have the overhead such as ATM machines, bank offices or bank tellers. This savings is passed on to the customers through things such as no fee checking account or on the minute check use.
There are many advantages and disadvantages to online banks. The biggest advantage is that you can do your banking from the convenience of your home, even in the middle of the night. You can also get your banking information faster and with more detail online. For example, when you take money out of the ATM machine, you should see that transaction on your account within the hour.
So are there drawbacks? Yes, there are. The one big drawback is the ATM fees. Online banks to not have physical branches, you will have to pay a fee to the bank where you use the ATM. However, there are ways to cut these fees. If you go to the grocery store and you use your bank card as a debit card to pay for your groceries, you can get cash back with no extra charges. Also, there are some Internet banks that will give you some sort of rebate on your ATM fees each month. For example, Compu bank gives their customers ATM refunds at in the amount of four per month.
There are two sites that can help you choose the best online bank. The Gomez Internet Banker Scorecard website is updated quarterly. Users of online banks can go on this website and rate their online bank for overall score, how easy the site and banking services are to use, the resources available to them and overall cost. Fool.com is more up-to-date than the Gomez Internet Banker Scorecard website. Their message boards have customers of online banks that provide daily reports regarding fees, services and problems they encountered.
Many people wonder if online banking is safe. When you choose the best online bank, you can rest assure that your account is safe and sound. With most online banks, your transactions are not sent over the internet because the bank uses a direct modem system. Also, most banks use high-end encryption. Encryption basically scrambles data. 128-bit encryption is the norm. It is virtually impossible to steal information that is encrypted.
One of the best ones I have found is Capital One 360. They will give you a $50 bonus. To get your bonus, open 360 Checking and make a total of 3 card purchases or Person2Person Payments within 45 days of account opening. Your $50 bonus will automatically be deposited into your account on day 50. They have a Mobile app that’s always by your side and have No fees or minimums, now that’s love