As more and more of daily life moves to online, you might be wondering if you should be banking virtually too. PennyGem’s Justin Kircher has some factors to think about before you make the switch.
Category
📚
LearningTranscript
00:00 [music]
00:04 As more and more of daily life moves to online, you might be wondering if you should be banking
00:08 virtually too.
00:09 Here are some factors to think about before you make the switch.
00:12 Money Crashers points out that online banks usually offer lower maintenance fees and higher
00:16 interest rates, because online banks don't have to pay for brick and mortar locations,
00:21 the staff running them, or even those fun pens that are chained to the counters.
00:24 They can pass the lower operational costs on to customers.
00:27 The site says in most cases, the online banks are going to offer better technology and apps
00:32 to make banking more convenient, which makes sense if they only have to worry about servicing
00:36 customers virtually.
00:37 The balance cautions to make sure your potential online bank has an FDIC guarantee, meaning
00:42 if something happens to the institution, you won't lose all of your money.
00:46 While some banks let you deposit a check centered around taking a picture with your phone, the
00:50 site does say that there may be limits with the amount you're allowed to deposit, and
00:53 also points out that if you're depositing cash primarily, you might want to stick with
00:57 a bank that has a branch.
00:58 This also means that when you want to take cash out of your account, you won't have a
01:02 dedicated ATM, meaning you'll be hit with transactional fees, though some online banks
01:06 will cover some of the ATM fees.
01:08 [MUSIC PLAYING]