Online banks allow you to have more choice and flexibility. You can do things on a computer, and you often get more competitive rates from online banks. They claim that they do not have the overhead and expenses associated with brick-and-mortar banks, so they can pass the savings on to you.
Online banks allow you to do everything online, including
- Open accounts
- Fund accounts
- Transfer money between accounts
- Use online bill pay services
- Buy CDs
- Get loans
- Access overdraft lines of credit
To learn more about online banking and read reviews of major online banks, see Online Banking 101.
As with everything in life, the perks of online banking come with tradeoffs.
Online banks provide services to individuals and businesses. Your brick-and-mortar bank may also offer online banking and special offers that are only available online.