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It may be hard to imagine these days, but internet banking didn’t exist until the mid-1990s. Before that, banking had to be done by calling or visiting a branch. However, despite the convenience that online banking has brought, it took some time to gain widespread acceptance. While some customers were concerned about the security of their online transactions, others still preferred the personal touch and hand-holding that accompanied a branch visit.
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However, as of December 2021, those concerns seem to have largely dissipated. A GOBankingRates survey of 1,335 Americans that month found that just over 14% preferred banking through physical branches or ATMs, while almost a third (31%) of respondents I preferred online banking through a browser. Perhaps the biggest sign of this era is that more than half of respondents (nearly 55%) prefer banking via their mobile app. If more than 85% of Americans prefer banking through their web browser or mobile app, here are his 5 online banks that fit your needs.
Ally Bank
Ally Bank’s history dates back to 1919 when it began as GMAC, the lending arm of General Motors. In 2009, the company rebranded as his Ally Bank and went completely online. As of 2022, Ally Bank ranks as one of the best online banks available, offering a range of customer-friendly features. Ally Bank has no account minimum and no fees on deposit accounts. In 2021, overdraft fees have also been permanently abolished.
Yields on checking and savings accounts are high, ranging from 0.10% to 0.25% and 0.50% respectively, and banks also offer a wide range of high-yield CDs, including no-penalty CDs and raise-your-rate CDs. Customer service options are also plentiful, offering live chat and his 24/7 phone line manned by a live customer service agent. Ally Bank also offers no-surcharge ATM access at over 43,000 Allpoint ATMs.
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discovery bank
Discover Bank is another solid entrant to the online banking category with the same no-fee, no-minimum structure as Ally Bank. Discover Bank also has a 24/7 customer service line and goes the extra mile to ensure all phone agents are based in the United States.
Discover Online Savings accounts currently yield just under Ally Bank’s yield at 0.40% APY, but Discover Bank offers no-additional ATM access on more than 60,000 machines, including both Allpoint and MoneyPass networks. offers. Discover Bank offers 1% cash back on most debit card purchases made using the account in lieu of paying interest to your online checking account.
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TIAA, FSB
TIAA Bank offers some great online account options, the only minor drawback is that they have minimum deposit requirements. For example, Yield Pledge Checking accounts pay 0.10% APY and no fees, but require a minimum deposit of $100. Basic Savings accounts pay 0.50% APY, but require a minimum deposit of $25. However, the CD minimum jumps to $1,000.
ATM fee reimbursements are pretty generous, starting at $15 per month and going unlimited if you have at least $5,000 in your TIAA bank account. CD yields are also fairly high, at 0.55% for 12-month CDs and 1.05% for 5-year CDs. Three and a half year “bump” CDs start at 0.80%. Like most quality online banks, TIAA does not charge any fees on your deposit account.
Axos Bank
Axos Bank offers the highest online savings account yield of 0.61% APY in GOBankingRates’ Best Banks survey. Interest is compounded daily and there are no account minimums or monthly maintenance fees. However, there is an initial deposit requirement of $250 and APY drops to 0.25% for balances between $25,000 and $100,000 and to 0.15% for balances over $100,000.
Banks offer three types of online checking accounts: Essential Checking, Rewards Checking and Interest Checking. This is very convenient for bank customers as they can choose the checking account type that best suits their needs. Rewards and interest checking accounts are reimbursed up to 1%, and all three checking accounts offer unlimited domestic ATM fee refunds. This is very convenient for a customer who doesn’t want to search for his ATM on a particular network.
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first internet bank
As its name suggests, First Internet Bank was the first state-licensed, FDIC-insured bank to operate entirely online. Given the head start, it’s perhaps not surprising that one of First Internet Bank’s strengths is the depth of its product line. In addition to checking, savings, and money market accounts, First Internet Bank offers CDs, IRAs, health savings accounts, mortgages, credit cards, auto and RV loans, personal and student loans, children’s accounts, and a wide range of We offer business accounts. likewise.
This bank does not save on savings accounts either, offering 0.50% APY on a no commission savings account and 0.30% on an interest checking account, but that account has a monthly fee of $10 It takes
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Pros and Cons of Online Banking
If you’re still not sure which type of bank is best for you, here are some of the most common pros and cons of online banking.
Strong Points
The biggest advantage of online banking is convenience. For example, instead of having to drive to a branch to deposit a check, you can usually use a mobile app and upload your deposit from the comfort of your own home. Also, you don’t have to call or go to the bank to get your account information. Most online banks also have low account minimums and fees, and often no account maintenance fees at all. Online banks generally have less overhead, so you can pay higher interest rates on savings accounts, CDs, and other savings accounts.
Cons
Most people don’t want to go to a bank branch unless they need it, but having a banker or branch available in case they need assistance is definitely a plus. Many online banks have his 24/7 customer service phone lines or chat options, but in some situations it may be easier to resolve issues face-to-face with a bank employee. I have. Another drawback of online banking is that you usually can’t deposit cash into your account. Some banks may offer the option of depositing cash through an ATM, but this is usually a last resort. Other online banks simply do not accept cash deposits, which can be off-limits to cash-rich businesses, for example. banks do not yet offer the full range of services offered.
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How to switch to online banking
Switching to online banking is easy. First, you need to open an account with an online bank via their website or mobile app. As with traditional banks, you will be required to provide basic personal and financial information such as your name and address, date of birth, social security number, and source of funds for your account. From there, most banks offer a variety of options for switching accounts from another institution. You can deposit checks via
Learn more about GOBankingRates
Methodology: GOBankingRates surveyed 1,335 Americans ages 18 and older nationwide between December 1-3, 2021, asking 12 different questions. (1) Which category does your current financial institution fall into? (2) Have you considered changing banks within the past year?; (3) Have you changed banks within the past year? (4) What features, benefits, or features were most important to you when opening an account at a new financial institution? What other services?; (5) Are you currently satisfied with all banking products and services offered by your bank/credit union?; (6) Having different types of accounts at multiple banks is (i.e. checking with Chase, savings with TD Bank); (7) What is your preferred method of banking?; (8) Which of the following is the biggest reason to stay with your current bank? (9) Which of the following bank accounts do you currently use/open? (Select all that apply); (10) What is the minimum checking account balance? (11) How much do you currently have in your savings account?; (12) If you are in a relationship or married, do you share a bank account with your partner? You had to answer “yes” to the screener’s question “Are you currently a bank (including online) or credit union member?” GOBankingRates conducted the research using PureSpectrum’s research platform.
This article originally appeared on GOBankingRates.com: 85% Prefer Online or Mobile App Banking: What’s the Best Option?
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