Top 10 Reasons to Open an Online Bank Account

An online bank, also called an internet-only bank, has no physical locations with tellers, a drive-thru, or suckers for kids. Instead, all of the banking operations are handled electronically over the internet. This type of banking is growing increasingly popular, and consumers have discovered many reasons to open online bank accounts.

1. Convenience - Banking online can be done any time of the day or night with no set hours and no closing time. If 3:00 am on a Saturday works best for you, an online bank will be open and ready to serve.
2. Security - Online banks utilize the most advanced internet security and encryption software to protect the financial information of their customers.
3. Flexibility - Online banking allows you to choose the exact types of accounts you want to open, and the number of accounts you can hold is almost unlimited.
4. Monitoring 24/7 - With almost instantaneous posting of transactions, online accounts can be monitored in "real-time." Customers don't need to wait for a monthly statement to check their balances or verify if a certain check has been processed, nor do they need to be surprised if an overdraft notice arrives in the mail a week after the fact.
5. Quick Access to Funds - Direct deposits, electronic funds transfers, and ATM or debit transactions are posted to an account the same day in most cases.
6. Simple Transfers - When multiple accounts are held at the same online bank, transferring funds is simple and quick.
7. Easier Terms - In many cases, online banks offer more favorable terms for certificates of deposit, money market, and other accounts. When compared to traditional banks, they may offer a lower opening deposit, a lower minimum balance, and more frequent access to funds.
8. Fewer ATM Fees - Online banks work to make it easy for customers to access their funds. With that goal in mind, many will refund ATM charges imposed by other banks, which makes ATM withdrawals and deposits completely free.
9. Saving Money - Banking online can save you money by eliminating the need to drive to a local bank. If most transactions are made via debit card or electronic payment, there is less of a need to purchase paper checks.
10. Higher Interest Yields - Perhaps one of the strongest attractions to online banks is that they frequently offer higher interest yields than traditional banks. The interest earnings on savings accounts can be more than double, and most checking accounts will earn interest as well.