Benefits of Online Only Banks

Here’s a quick banking quiz:

  • Do you like to bank on the go using mobile services/devices?
  • Do you want access to your bank at your convenience, day or night?
  • Are you looking for better rates on such bank products as checking accounts and certificates of deposit?

If you said “yes” to all three, then online only banks like Bank5 Connect are probably a perfect fit for you. There are plenty of benefits to online only banks, compared to a traditional banking institutions.

For one, online only banks mesh well with someone who doesn’t need the in-person services of a physical branch office. For another, the online approach is geared toward mobility. Customers can access their accounts and conduct other banking on their computer, smart phone or tablet.

And other than website maintenance, online only banks are open 24 hours a day, 365 days of year. So if you want to check your bank statement or apply for a loan at 2 in the morning, you can do it with just a few clicks on your laptop or phone. This ease of use gives customers real-time access to account balances and other information, something that’s not available with the traditional banking approach.

Updating and maintaining an online account is also a lot easier. You can do things such as change your mailing address and check current rates on loans in a matter of minutes. And you can transfer money from one account to another, usually at no cost and with no limit to the number of transfers.

Another convenient feature of online only banks are account alerts. You can be notified by e-mail or text message that you’re near your overdraft limit on a checking account or be reminded in the same fashion when a bill is about due.

Online banking customers will usually discover that their bank’s website offers a lot more than that of a traditional bank’s site. Financial planning tools, loan calculators, budgeting and forecasting tools, and investment analysis tools are just some of the services online consumers have access to.

And let’s not forget the convenience of bill pay. With bill pay service, you can receive electronic reminders of when bills are due and make payments swiftly, even on mobile devices. You can set up the service to pay bills automatically at the same time every month. What’s more, it eliminates the need to buy stamps and rely on traditional mail service to handle your bills’ delivery.

On a related note, online only banks have other environmentally friendly aspects. It reduces vehicular traffic and there’s no need for paper. In fact, there’s no need for buildings and office equipment, either.

Another handy service is check depositing through a mobile app. For instance, Bank5 Connect’s mobile app allows you to take a picture of a check you want to deposit and then transmit online to have it automatically credited to your account.

As mentioned earlier, since there’s no need for buildings or office equipment with online banking, overhead costs are much lower. This allows the online bank to pay higher interest rates on savings and CDs and charge lower rates on loans.

When you add it all up, it’s hard to beat the benefits of online-only banking.

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