What Makes An Online Bank Good? Here’s What To Look For
The banking industry has undergone a lot of changes in recent years. Gone are the days when people would go to their local bank to do their transactions. Now, more and more people are choosing to do their banking online. But with so many banks to choose from, how do you know which one is right for you?
There are a few things you should keep in mind when looking for an online bank. Here are five things that make an online bank a good one.
This is the most important thing to look for in an online bank. The Federal Deposit Insurance Corporation (FDIC) is a government agency that protects your money if the bank fails. All banks are required to have FDIC insurance, but it’s still something you should look for when choosing an online bank.
There are a few things to keep in mind when it comes to FDIC insurance. First, the coverage is per account, not per person. That means if you have multiple accounts with the same bank, each account is insured for up to $250,000. Second, the coverage only applies to deposits made into the account. It does not cover investments made through the bank, such as stocks or bonds.
Therefore, it’s important to make sure that the online bank you’re choosing is FDIC insured. This will give you peace of mind knowing that your money is safe in the event of a bank failure.
The interest rate is the amount of money you earn on your deposited funds. The higher the interest rate, the more money you’ll earn on your deposited funds. When choosing an online bank, be sure to compare interest rates before making a decision, similar to what was done in this revolut bank review. Also, when comparing interest rates, be sure to compare APYs (annual percentage yield) rather than interest rates. The APY is the true interest rate, taking into account compounding interest.
On the other hand, some banks offer promotional interest rates for a limited time. These rates are often much higher than the bank’s regular interest rate. If you’re looking to earn a high-interest rate, you may want to consider an online bank that offers promotional rates. However, be sure to read the fine print before opening an account. Promotional rates usually have strings attached, such as minimum balance requirements or direct deposit requirements.
Great customer service is important, no matter what type of business you’re dealing with. But it’s especially important when it comes to your finances. After all, you’re trusting the bank with your hard-earned money and you’ll be dealing with customer service representatives if you ever have any problems with your account.
When choosing an online bank, be sure to read customer reviews to see what others have said about the bank’s customer service. Also, try to find a bank that has multiple ways to contact customer services, such as by phone, email, or live chat. This way, you can always get in touch with someone if you ever have any problems with your account.
Ease of Use
You’ll be using the bank’s website or mobile app to do most of your banking transactions. Therefore, it’s important to make sure that the site or app is user-friendly and easy to navigate. This includes things like being able to easily find the information you’re looking for, being able to transfer money quickly and easily, and being able to view your account balance with just a few clicks.
Be sure to take some time to explore the bank’s website or mobile app before opening an account. This will give you a good idea of how easy it is to use and whether or not it’s something you’ll be comfortable using regularly.
Most online banks don’t charge monthly fees, but there are still some that do. Some banks may also charge other fees, such as account maintenance fees, transfer fees, or ATM fees. It’s also important to note that some banks offer free accounts but require a minimum balance. If you don’t keep the minimum balance in your account, you may be charged a monthly fee. Therefore, be sure to read the fine print and compare fees before choosing an online bank.
On the other hand, some banks offer fee-free accounts with no minimum balance requirements. These types of accounts are becoming more and more common, so you shouldn’t have any trouble finding one that meets your needs.
When it comes to finding a good online bank, there are a few things you should keep in mind. Make sure the bank is FDIC insured, has a good interest rate, and offers great customer service. Also, be sure to check out the bank’s website and see if it’s easy to use.
Additionally, it’s important to consider the fees that the bank charges. Some banks charge monthly fees, while others don’t
By taking all of these factors into consideration, you’ll be able to find the best online bank for your needs.