If you’re looking for a new online bank, it’s important to do your research first. Not all banks are created equal, and some may be better suited for your needs than others. In this blog post, we will discuss some of the most important factors to consider when choosing an online bank. We’ll also recommend a few of our favorite banks that we think are worth checking out. So read on to learn more!
1) User-Friendly Digital Banking Platform
One of the most important factors to consider when choosing an online bank is how user-friendly their digital banking platform is. You should be able to easily log in and view your account balances, transactions, and any other information you need. The last thing you want is to have to struggle with a complicated interface just to check your balance! Also, the best digital banks offer a mobile app that makes it easy to bank on the go. For example, you should be able to easily deposit checks and transfer money using your mobile phone. Or, if you have questions, you should be able to easily reach customer support.
2) FDIC Insurance
Another important factor to consider is whether or not the bank is FDIC insured. This means that your money is protected in the event that the bank fails. FDIC stands for Federal Deposit Insurance Corporation, and it’s a government-backed program that protects your money up to $250,000. So if you have more than $250,000 in your account, you’ll want to make sure the bank is FDIC insured. Also, it’s worth noting that not all online banks are FDIC insured, so this is definitely something to keep in mind.
3) Competitive Rates
Of course, you’ll also want to make sure that the online bank you choose offers competitive rates. This includes both interest rates on savings accounts and loan rates. For example, if you’re looking for a high-yield savings account, you’ll want to make sure the bank you choose offers a competitive APY. And if you’re looking to take out a loan, you’ll want to make sure the interest rate is reasonable. You can use a tool like Credible to compare rates from multiple lenders to make sure you’re getting the best deal possible.
4) Low Fees
Next, you’ll want to make sure the online bank you choose has low fees. For example, some banks charge monthly maintenance fees just for having an account. Others may charge ATM fees if you use an out-of-network ATM. And still others may charge foreign transaction fees if you use your debit card overseas. So it’s important to familiarize yourself with the fees charged by the bank you’re considering. That way, you can avoid any unwelcome surprises down the road.
5) Robust ATM Networks
Furthermore, you’ll want to make sure the online bank you choose has a robust ATM network. This is important because you never know when you might need cash. And if the bank you choose doesn’t have many ATMs, it could be difficult (or even impossible) to get cash when you need it. The best online banks have thousands of ATMs across the country, so you can always get cash when you need it.
6) Multiple Banking Products
What’s more, you’ll want to make sure the online bank you choose offers multiple banking products. For example, some banks only offer savings accounts and checking accounts. Others may also offer money market accounts, CDs, and even loans. So if you’re looking for a one-stop shop for all your banking needs, make sure the bank you choose offers everything you’re looking for.
7) High-Yield Savings Accounts
Last but not least, you should ensure that the online bank you select offers high-yield savings accounts. This particular account type provides an interest rate that is higher than that of a conventional savings account. This is significant because it enables you to increase the interest you receive on your money. And your money will grow more quickly the more interest you earn. Not all online banks provide high-yield savings accounts, it should be noted. Make sure the bank you choose provides it if this is something in which you are interested.
So those are some of the most important factors to consider when choosing an online bank. Be sure to keep all of these things in mind as you shop around for a new bank. Additionally, be sure to compare rates and fees from multiple banks before making your final decision. And remember, the best bank for you is the one that meets all of your specific banking needs.
