Making the choice of which bank you want to work with can be a tough decision. There are many banks to choose from that offer different things, like interest rates, service fees, minimum balances in your accounts, as well as different types of checking and savings accounts. There are a lot of decisions to make, and in this day and age, there is one more big choice to make; should you bank with a traditional bank, or should you bank online? Most things can be done online nowadays, and people love the convenience of being able to manage most of their life from their computer or phone. However, there are pros and cons to each type of bank account that you can choose from. Looking at a comparison of free online bank accounts versus traditional bank accounts can help you decide which one is the best for you.
One question that is on a lot of people’s minds when they think of free online bank accounts is how they are going to get their money. Traditional banks have ATMs everywhere, at their branches, in some grocery stores, and even random locations that are pretty spread out. Many of the online banks have agreements with ATM networks, and people can use the debit card that is sent to them to get their money out of many ATMs with no charge. Before deciding on an online bank versus a traditional bank, you should look and see how convenient it will be for you to get your money from an ATM.
People have different preferences on how they like their customer service. Many people like to have their problems dealt with in person, while others like to handle their problems over the phone or by e-mail. Having a traditional bank means that you can go into the branch and speak directly to a person about whatever problem you are having. However, the physical location of a bank is closed on Sundays, and they are closed on bank holidays, so you may have to wait to receive help. Most banks do have call centers and online message centers to deal with problems, as well. Online banks are hardly ever closed, and you can manage all of your money online. Many of the online banks have 24 hour customer service to answer any of your questions, but if you ever want to handle a transaction face-to-face, it is impossible.
Some people fear that they are more at risk for getting their identity or money stolen if they do all of their banking online. A lot of this fear comes from the act of depositing money. With a traditional bank, you can go into the bank’s branch and deposit the check with a teller, or you can deposit it through an ATM. With online banks, you can mail in the check, or you can take a picture of the check, both front and back, and upload it to your account. Some people do not like this option because they see it as higher risk, and would rather put a check into someone’s hand, knowing that nothing is going to happen to it.
There is another difference between traditional banks and free online bank accounts that may help you make your decision, and that difference deals with interest rates. Many online banks offer a higher interest rate on your accounts because they have fewer bills to pay to operate branches and pay their employees. Traditional banks still offer interest rates on your accounts, but they tend to be smaller because they have to operate their building and pay the people who work in them.
When choosing between a free online bank account and traditional bank account there are a lot of factors to consider. It all comes down to personal preference, and which type of banking experience you prefer. Make sure to do all your research, and even talk to different banks to see what they have to offer before making a final decision.