Online banks have a lot to offer which allows them to compete with traditional banks. A lot of online banks offer lower fees and provide users with more convenient ways of banking. You also won’t need to deal with long lines whenever you need to do a transaction.

The choice to open an account with an online bank is only the start. You need to choose from multiple options for the right bank that meets your needs. A common denominator is that users don’t need to visit a physical branch to complete their transactions. Everything is done completely online. But because the market is growing, each online bank will try to find a unique product or service to make them stand out to consumers. This can be lower fees, more banking features, and better customer support.

Below are 8 things we recommend to check to help you in the search for the right bank.

Types of Account

Decide what type of account you need before you look for other features. Do you want to open a new savings account, a checking account, or a certificate of deposit? The advantage is that there are online banks that offer a mix of account types. There are even online banks that offer the same account types that traditional banks have. Other online bunks are more specialized. An example is Marcus by Goldman Sachs which allows owners to transfer funds from a regular account into a CD or into a high-yield account.

Mortgage and loan

Online banks are not limited to offering standard types of accounts only. Leading online banks can also offer products such as home loans, personal loans, and commercial loans. Online banks with a bigger parent company, such as Sofi Money, can also provide their customers access to traditional banking services from the parent company. This can include student loan refinancing, dental /medical student loans, and mortgage refinancing with discounted rates.

Banking Fees

A major advantage of online banks is that users can enjoy lower fees. Online banks save a lot on overhead costs without any physical branches to manage. These savings are passed on to customers through lower bank fees. Banks such as NBRC can even offer zero monthly fees and almost no additional charges at all, with the exception of wire transfers.

Many banks still rely on monthly fees but this would cover a bunch of other benefits. But, monthly fees can also be waived by meeting certain conditions such as maintaining a minimum account balance.

Wire Transfer

It’s 2023 but you might be surprised to learn that there are still banks that require Customers to physically make international wire transfers at a branch. If you want an online checking account for your daily transactions, wire transfers are a necessity. If you want online savings to account it should also be easy for you to transfer funds into the account. When you’re researching which online bank to use, be sure to check out their wire transfer requirements, how long before the funds are received, and how much they charge for every transfer. International wire transfer fees are standard but there are banks that offer lower fees. You might want to avoid banks that charge domestic transfer fees if you do a lot of transactions and want to save money. If you regularly make wire transfers, look for online banks with the lowest fees.

Security

Securing customers’ money is a critical aspect for banks whether it’s traditional or online banking. Before you open an account with any bank, check whether the bank provides insurance through the Federal Deposit Insurance Corporation. If they do, you should be able to easily locate the FDIC logo at the bottom of the bank’s website homepage. Another crucial factor is data security. the bank’s security page should provide information on how they protect customers’ data. A strong SSL encryption designed for financial transactions is a necessity. Bank websites should also employ multi-factor authentication which allows users to verify every login attempt made on their account.

Mobile Accessibility

Choosing an online bank is often linked to the convenience they offer. Banks with their own mobile apps allow their customers to manage their accounts with a few taps and snipers on their phones. A 2018 PwC survey revealed that 15% of Americans would choose mobile banking over any other option. This saw a 10% increase from the previous year. Many online banks offer apps for both Android and iOs devices containing the same Functionalities that you would find on their web version. If you transact with checks often, you might appreciate the check scanning feature in some of these mobile bank apps. You can easily scan your checks with your phone and deposit them into your account.

Customer Support

The selling point of online banks is that customers can do transactions wherever they are without dealing with long lines. Since everything is online, platforms should prioritize having a customer support team that can help resolve issues remotely. The best online banks would understand the importance of providing a great support team. When customers entrust that banks will protect their money, they have the right to call for assistance regarding banking issues. Most online banks, unfortunately, only have customer support during regular business hours. There are a few that have a support team on extended business hours. At the very least, your bank should have a toll-free line and a live chat feature for support. In anticipation of common customer concerns, the bank’s website should also have a FAQ page.

Other Features

Although many customers go to online banks for the convenience of basic transactions, there are many other benefits to consider. Online banks may have a monthly fee for every account you open but this comes with services beyond traditional banking. they can throw in features such as identity theft protection, cellphone protection, emergency roadside assistance, as well as discounts from their network of partner merchants. Whether these benefits are worth the monthly charge is up for consideration.

Shop Around to Find the Right Online Banks

Chime

Chime is a pioneering fintech company considered a new generation of online banking platforms. They aim to be more accessible and user-friendly than brick-and-mortar banks. Chime does not charge fees and is a real online alternative to traditional banks. For tech-savvy users who want to get the most out of their savings and checking accounts, Chime offers multiple possibilities.

American Express

American Express is an industry leader that offers solid security features and exceptional customer support with the convenience of online banking. They offer some of the highest APYs in the market giving you a huge advantage over going to a traditional bank.

Chase

Chase provides checking accounts that are completely online. You can open a certificate of deposit or savings account online. You can monitor account activity, view statements, transfer funds, and pay bills online.

When you start looking at various online banks, you will notice that there are certain features that make one stand out from the rest. It can be the lack of fees, more banking features, or longer customer support hours. This is why it’s important for customers to prioritize the features they need. Then, you’ll be able to find the right online bank for you.