Just like most things today have seemingly become a series of 1’s and 0’s, so has banking. Online banking, unlike traditional banking, is attracting consumers with the convenience of managing their funds from the sofa or waiting in line at the grocery store.
If you’re on the sidelines about switching to online banking, Max CashⓇ can help guide you towards the pros and cons of using this type of service.
What is Online Banking?
Basically, online banking is accessing your checking or savings account and other services via the internet. Brick and mortar bank locations have set business hours which can make them inconvenient for many who may have crazy schedules. Online banking services can be tied to a physical location. But, the ability to access these services online eliminates the need to go to a bank! Instead, users can transfer funds, pay bills, or just check their account balances from their smartphone, laptop, or PC. It’s all about convenience!
How Online Banking Works
Accessing online banking services couldn’t be easier! Just create an account with the bank or financial institution of your choice via their website or app, fill in some basic information such as your name, address, SSN. You can choose if you’d like to set up direct deposit through your employer as well. Depending on the bank, you may be able to instantly start transferring money, apply for loans, or start investing–all from the palm of your hand.
Benefits of Online Banking
What is internet banking all about, then? Is it really worth switching over if you’ve been more than happy going to a traditional branch for years and the tellers know you by your first name and there’s candy in a dish on the counter? Consider the following:
24/7 Access
The top online banking benefits and advantages are centered around the 24/7 availability of your money, no matter where you are. As mentioned above, traditional banks have set business hours, or lobby and drive-thru teller access, which can be a huge inconvenience if you are busy and on-the-go constantly. With online banking, the digital “lobby” is always open. If you’re hit with an unexpected emergency, getting instant cash can be extremely helpful.
Lower Fees and Interest Rates
Some of the best banks online offer lower fees and interest rates compared to brick and mortar locations. Overdrafts, ATM services, and even the general maintenance of your account may come with reduced fees, mainly due to the fact that there’s less overhead costs.
Security
If it’s online, is your money truly safe? This is a valid concern, but most online banking comes with encryption, two-factor authentication, and real-time fraud detection for suspicious activity or non-authorized purchases.
Pros and Cons of Online Banking
Before making the switch to online banking, take time out to consider the positive and negative aspects of going digital:
The Pros:
- 24/7 availability; anytime, anywhere.
- Near-instant transfers and direct deposits.
- Reduced fees compared to solely brick and mortar banks
- More “free” services (withdraws, no monthly fees)
The Cons:
- Internet: if you don’t have access to it, then you can’t access your bank, either.
- May become vulnerable to internet hackers or “phishing” schemes.
- Potentially limited or no in-person customer support for some services (bank letters, cashiers checks, or wire transfers).
Depending on how you plan to use an online account, the pros and cons of online banking listed above may help you in deciding whether going digital is right for you.
Is Mobile Banking the Same as Online Banking?
You might be asking yourself, “Is mobile online banking the same as online banking?” Yes, and no. Here’s what you need to know about mobile and online banking:
- Online: With online banking, you can manage your account through a web browser on your laptop, phone, or PC.
- Mobile: You can access your account and other online banking services through an app on your smartphone or tablet while on-the-go. You will need a phone or a tablet that can download the app in order to access these services.
Finding the Best Banks Online
The days of traditional banks or stashing your savings under the mattress may be becoming a distant memory, but how do you find the best banks online? When searching for an online bank, make sure to consider user ratings, security, and the availability of specific services.
Some of the services that can be the most advantageous through an online bank account include check depositing or transfers between your accounts. Ask yourself- does the online bank offer lower fees, quality customer service, or a mobile app?
Chime, for example, offers a simple, hassle-free app for banking with access to over 50,000 fee-free ATMs† ‡, which is not only convenient, but sometimes a necessity, especially if you’re in a situation where you need to pay for something with cash.
Start Banking Online Today!
Online banking is here to stay and only getting better with enhanced mobile banking and other super-streamlined services. Weighing the online banking benefits and advantages can help you get the most out of them. Max Cash has partnered with Chime and Upgrade to let you start reaping the rewards of banking today!2 5
Whichever banking option you choose, Max Cash wants to help you find the best financial solution for you. Whether you’re in a financial emergency, or if you’re just ready to explore other options, we’ve got your back!2 5
