The number of online banks is on the rise! For consumers, this means lower fees and better rates. However, not all online banks are safe bets. Here’s how you can pick the right online bank.
Things to look out for when selecting an online bank
Low Fees
A major reason why people move from brick-and-mortar banks to online banks is to avoid paying pesky fees of all sorts – monthly account fees, service fees, overdraft fees, ATM fees, and more. While you can’t escape all fees and charges when you open an account with an online bank, it’s a good idea to pick an online bank that charges as few fees as possible.
Good Customer Service
Just because a bank advertises that it offers 24/7 customer service, it doesn’t mean the quality of service will be great. That’s why it’s a good idea to check online reviews left by customers and go through the bank’s social media pages.
Strong Security Standards
Cyber attacks are becoming more and more common of late, so it’s wise to check how the online bank you’re thinking of opening an account with maintains security. Fortunately, online banks have the backing of the FDIC, so you may not lose money. But, still, there is a possibility that your data may be exposed.
High BauerFinancial Star Rating
BauerFinancial is a company that has analyzed the performance of U.S. credit unions and banks for decades. It’s a good idea to check the BauerFinancial star rating of the online bank with which you are considering opening an account – if the bank has a rating under three stars, it is a cause for concern.
Flexibility
You’d assume every online bank has its own app, but that’s sadly not the case. Also, not all online banks have a large network of ATMs or offer around-the-clock customer service. So, make sure that the online bank you choose offers conveniences that are important for you.
Ease of Account Set Up
Just because online banks appear to be high tech, doesn’t mean they follow high-speed processes as well. Before you submit your document, it’s a good idea to inquire how long it will take for your account to be opened.