Online Bank Accounts
Online bank accounts have a number of advantages over more traditional bank accounts. First and foremost, since they don't require local branches, costs are greatly reduced. Further, since most common tasks are handled electronically, staffing requirements are much lower for online bank accounts, further reducing costs. These savings can be passed on to online bank account holders in the form of higher interest rates and lower fees.
Bank from the Beach
Further, with 24/7 access to your account over the internet, you can handle many banking tasks from almost anywhere. Being able to send electronic checks from your
online checking account, move part of your paycheck to your
online savings account, and pay bills, all from your laptop in an Internet cafe, makes banking quick and painless, rather than an ordeal.
Online Bank Account Security
Many who are reluctant to make the switch to an online bank account cite concerns over security as a primary reason. In particular, they worry that getting their banks statements online rather than by mail may expose them to identity theft. The truth is the opposite is true. You're much more likely to fall victim to identity theft from someone raiding your mailbox or garbage than getting ahold of your online bank statement. Online bank documents are strongly encrypted, and highly difficult to crack. Anyone can get into your trash can, however. In short, Online Bank accounts are generally
more secure, not less.
Online Bank Accounts from Traditional Banks
Internet banks have been growing rapidly in market share in recent years, and some of the bigger banks, such as Washington Mutual, have responded by offering
online bank accounts of their own. While some limit access to branches for online account holders, others allow you to take full advantage of their local branch and ATM networks, which is a great deal for those who prefer to at least have the option to do their banking in person.
The Beginning of the End for Local Bank Branches?
So are the days of the local bank branch numbered? It's hard to say for sure, but one thing is certain - online bank accounts are here to stay, and are bound to continue to grow in prevalence. If you haven't considered switching to an online bank account, you should. The benefits are too good to be ignored.