Do you prefer managing your money online? If so, you’re not alone. According to recent data from the Federal Reserve, 44% of people have bank accounts that they manage in some way online. So what makes online banking so popular? Let’s take a look at some of the top reasons people start bank accounts online and decide if this type of bank account might be right for you.
So Why Do People Start Bank Accounts Online?
There are various reasons why people choose to start creating a bank account online. Some of them are:
No Extra Fees
It’s often free to move money in and out of your account, making setting up automatic payments or transfers much easier. Plus, you may be able to avoid monthly maintenance fees (or avoid them if you maintain a minimum balance). In some cases, these accounts come with rewards programs, too. For example, some banks offer cashback on debit card purchases and don’t charge ATM fees.
Impressive Interest Rates
If you’re looking for a way to boost your bank account and earn extra income, a good place to start is by shopping around for online savings accounts with impressive interest rates. When it comes to earning interest on bank accounts, traditional brick-and-mortar banks have cut their work out. According to experts at SoFi “Many online banks have been offering far higher rates in recent years.” However, that’s not all that makes digital banks attractive; convenience also plays a major role.
Convenience and Easy Access
One of the online banking’s biggest draws is its convenience. With an online bank account, you can do your banking from just about anywhere at any time. If you aren’t close to a physical branch, traditional banking services may not be convenient, but online options are always accessible. In addition to remote access and 24/7 availability, many online banks offer additional conveniences such as mobile apps that make it easier to deposit checks and transfer funds.
Easy Depositing Through a Mobile App
Many online banks have apps that enable you to make deposits on the go. Even if you’re not carrying large sums of cash, leaving an envelope of cash in your car is risky business, and bringing a checkbook (or worse—an actual roll of bills) into a bank isn’t always convenient. Mobile deposit options are great for those who want to take care of business from their phone, even if they don’t need to do so daily.
Better Customer Service
Why go to a branch if you can do everything through your computer and phone? Why wait for a teller if you’re doing nothing but depositing checks? Many online banks offer features and services that traditional banks simply can’t provide. For example, many offer apps that allow you to deposit checks from your phone.
A bank account is simply a way to hold your money so you can access it when needed. If you don’t need an extra layer of security or are happy with the limitations of using a debit card, then an online account might not be right for you.