Should You Use an Online Bank?

As a society, we are more electronic than ever. More of our day to day activities can be done online. Something that is consistently done online by people is online banking. Take one look at Plutuspocket and you would get to know all about it. An online bank account is a great way to stay connected to your finances and is convenient. However, convenience can come at a price. Depending on your bank, there are certain downsides you should understand to avoid surprises on your statement.

Some online banks have a tendency to have poor customer service. Online banking is less expensive for the bank to operate, so they won’t pour all of their funds into customer service because the interaction is less. With your local bank and credit union, you’ll find that the customer service is better because they are trained to know you. You also have the option of who you want to deal with. With online banks, you only have the option of calling or emailing and your issue may be addressed by somebody who is knowledgeable, or it may not be.

Depending on your bank, it may make it difficult to have access to the money when you need it. It is actually harder to spend the money. You often have to transfer money to your primary account before having access to it. There are some online accounts that give you the option of debit cards or online bill pay.

Online bank accounts may also make it more difficult for your account to reflect new balances. Overall, the cyberspace is supposed to make everything faster, but with online accounts, you may find yourself waiting longer for checks or bills you’ve paid to clear. This also includes deposits made to your account. Many online accounts are beneficial to customers because they have a higher interest rate, but you may have to wait to start earning because it can take longer for your check to be deposited.

The internet and computers can be very efficient, but online banks don’t work if the combined aren’t working. Technical difficulties and site downtimes happen. Unfortunately, when it happens, it stops you in your tracks. There isn’t a branch you can go to and their phone lines will already be busy and if you get through, it won’t get you anywhere. They’ll more than likely be aware of the issue and all you can do is wait. Because of this, be sure to keep a small amount of money in a local branch in case an emergency comes up and you have easy access.

Online banks are convenience to many and often their benefits outweigh the bad. In this economy, having access to a better interest is enough for anyone to jump into online banking. If you don’t need access to customer service to your bank and are comfortable performing most of your transactions online, an online bank may be perfect for you. However, if you’re someone who likes the interaction of speaking to someone at your local branch, you may want to keep your primary account there.

Related posts