Choosing the Right Bank Online
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If you have decided to join the 21st century and selected online banking, there are some things that you should look for in the short list of banks you are considering. The important things are those which fit in with your type of banking needs.
High interest rates
Because online banks do not need to tie up their funds in buildings, and parking lots, they can pass savings on to you in the form of a higher interest rate on your checking, money market and savings accounts. Online banks consistently pass on higher returns to their customers than the national average.
Communication with other bank accounts
The most efficient type of online banking account allows you to communicate easily with other bank accounts. Many account holders choose to set up savings accounts, checking accounts, and money market accounts or other types of bank accounts so that funds can be easily transferred from one account to another
No fees
Definitely watch out for obvious fees and even more so for the hidden fees some banks try to slip in. You should be able to find quality online banks with no monthly or balance fees eating away at your savings and earnings.
No minimums
Another favorite tactic of banking facilities is to charge you any time your balance in savings or checking accounts fall below a certain balance. If you don’t typically hold large amounts in your accounts, this fee alone can add up to hundreds of dollars over a year’s time. Sometimes the minimum balances are significant, but other times they are relatively small. If it works with your banking needs, and the bank pays interest on the minimum balance, it is a way to maintain a small emergency fund.
Security
It’s almost a given that the online banking sites must be meticulously secure to prevent unauthorized access to your account. With identity theft rampant in this country, particular attention should be given to privacy and access issues with your online account. No facility is perfectly safe all the time, and problems come from the internet and from the computer terminal you use regularly in some instances. Ask the online bank you are considering what their security and privacy regulations and practices are.
FDIC Insurance
The Federal Deposit Insurance Corporation is an insuring agency for bank accounts set up in the wake of the bank failures prior to the Great Depression. It is a government corporation that insures checking and savings accounts up to $100,000 or in some cases $250,000 per account. The FDIC kicks in to rescue the accounts of depositors in member banks in the case of bank insolvency.
Fast transfers
If you regularly transfer funds from one account to another, or from one bank to another, you don’t want funds held up in transit due to bank hold policy or check clearing policy. Federal banking regulations mandate maximum hold times on checks, but if you must wait up to ten days for all incoming deposits to be available to you, it can result in serious cash flow problems.
ATM/Debit Card
It is important to have a method to easily access the funds in your online banking account. Most people select a debit card. With the VISA or MASTERCARD emblem on the card, it acts the same as a credit card and is widely accepted at point of sale locations around the world.
Popularity: 14% [?]
Related Posts
- Online Banking Fee Information
- Common Online Banking Services
- Online Banking Terms
- How to Benefit from Online Banking
- Avoid Fraud in Your Online Bank Account
- Reconciling an Online Bank Statement
- How to Find the Best High Interest Savings Account
