The world of banking is changing. Long gone are the days of you wondering, “Can you make a bank account online easily?” Going to a local branch and opening an account are no longer mandatory. Instead, you’re able to do it all online. With new technology such as ATMs, mobile apps and online banking systems, it’s easy to be able to manage your finances from the comfort of your living room couch or at work without having to step foot into a branch.
1. People who want to earn more interest
If you’re looking to earn more interest on your checking account, online banks are a great option. Not only do they offer higher rates of return than traditional banks, but they also have lower overhead costs. This means that the savings can be passed on to customers in the form of higher interest rates and better customer service.
2. People who want a low-to-no-fee account
There are a number of reasons why someone might want to open an online bank account. One of the most common is that they want a low-to-no-fee account.
Online banks offer few fees and no minimum balance requirements, which can save you money in the long run. As per the experts at SoFi, “Some also have no ATM withdrawal fee, so there’s no need for you to pay every time you use another bank’s ATM machine.” Plus, if you do overdraw your account, many online banks won’t charge overdraft penalties as big brick-and-mortar institutions do.
3. People who have limited requirements
If you don’t have a lot of money to deposit and/or don’t use your bank account often, opening an online checking account might be the right choice for you.
People who don’t need to make frequent withdrawals or deposits into their accounts (and those who have limited requirements for their bank accounts) should consider opening an online checking account.
This is because many traditional banks charge monthly maintenance fees on checking accounts with low balances, while no-fee online checking accounts do not.
4. People looking for different rewards programs
Rewards programs are a great way to get more value from your bank account. Cashback credit cards are another popular reward option because they allow users to earn money just by spending it normally. These cards offer cash back on all types of purchases, so they can be used in any situation where you would otherwise pay with cash or swipe your debit card—and some will even give you extra bonuses when making certain types of purchases.
5. People who don’t need brick-and-mortar branches
Another group of people who might be better served by an online bank account is those who have limited requirements. Online banks offer low-to-no annual membership fees and attractive interest rates on their savings accounts (a benefit that’s particularly valuable for savers). They also tend to be fairly transparent about any additional charges or restrictions on the use of their accounts—something traditional banks are often criticized for lacking transparency around.
There are plenty of good reasons to open an online bank account. If you’re tired of paying fees and want higher returns, an online bank may be right for you. If you want a low-to-no-fee account with no minimum balance requirements, then online banks may also be the choice for you. And if your banking needs are minimal, then there’s still room for online banks in your life!