Online banks don’t have the same operating costs that brick-and-mortar banks have. Consequently, many internet-only banks make it part of their mission to provide higher interest rates for their customers. That’s why you’ll see many of the best savings accounts are offered by internet-only banks.
In addition, many online banks invest in sophisticated apps and online banking options to make accessing and managing your money easy. For example, you may be able to simply take a picture of a check in order to make a deposit. In this regard, there isn’t much need for using a physical banker and many people enjoy not having to drive to a physical bank in order to make deposits or other transactions.
Still, some may find this experience a little less personal or even difficult when technology malfunctions.
Online banks may have agreements with physical ATM locations so you may use these ATMs (potentially at no cost) to access your money. These shared ATM locations will usually be listed on the bank’s website. In addition, some internet-only banks offer to reimburse a certain amount of ATM fees, which will allow you to use any ATM that’s convenient. Be sure to check with your bank for ATM locations and fees before you access your account using an ATM.
Another way to access your money with an online savings account is by linking an external account to your online savings account. In this case, you’ll be able to keep your brick-and-mortar account and transfer money from your online account to it. Be sure to ask your bank if this is an available option.
In addition to online banks, another popular option is credit unions. Credit unions hold the same philosophy as internet-only banks in regard to providing customers with the highest return on their investment. In addition, credit unions offer shared banking, where you’re able to do your banking at a credit union near you as if it were your financial institution, but keep your accounts with the other credit union, which may be in another state.