Should You Choose an Online Bank or a Traditional One? Here Is How to Figure It Out!

When it comes to opening a checking or savings account, it seems like the sky’s the limit. There are so many banks out there, and new ones are popping up all the time in the 21st century. But, banking is a major factor in your financial well-being, and it isn’t anything to take lightly. Therefore, you need to buckle down and do your research accordingly when it comes time to pick the right bank to meet your financial needs and future goals. Not sure whether to choose a traditional bank or side with the online bank of the future? Here are the 5 key differences between your two options:

Online banks:

• No physical locations – Online banks don’t have physical locations you can visit, and you’ll do all of your banking via the web, or a mobile app.
• Speedy account opening process – Opening an account at an online bank can be a quick and easy process. Just provide some personal info, and your new account will be up in a matter of minutes.
• Some ATM fees – Online banks may offer ATM access, but you’ll want to make sure you find out what in-network fees you might encounter, as well as the cash limits your account imposes.
• Few to no fees – Online banks are the clear winner when it comes to fees! Similar to how online banks don’t shave your interest yields down to anything, they’ll also have wiggle room with fees.
• Phone or online customer service – While online banks definitely have customer support teams, you’ll also find yourself scrolling for answers or chatting with a bot to get the help you need.

Traditional banks:

• Local, physical branches – Banks have actual buildings – called branches – that you can visit, either on foot or via a drive-thru, and get help with all of your banking needs.
• Slower account opening process – You’ll likely have to bring documentation with you and visit a branch during business hours to open an account unless the option is available through their app.
• Large ATM network – Since traditional banks have bank branches, they’ll also offer ATM access at their network of ATMs.
• Typically come with fees – A traditional bank might charge 10 or even 15 bucks per month just to have a checking account. Sometimes, you can avoid these fees by scheduling a direct deposit.
• In-person customer service – Here’s where traditional banks have the edge. You can work one-on-one with a friendly face to solve all of your issues, even if it does keep their overhead higher.

As the saying goes, knowledge is power – and, at The Westport Apartments in Norfolk, Virginia, we couldn’t agree more! We hope that this blog has presented you with the valuable information that you were seeking out.

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