How To Choose an Online Bank

Choosing an online bank is easy when you know what to look for. Here are some tips that can help.

1. Check the bank's rating

Before opening an account with any bank, ensure that you review its track record. Check if it is complying with federal banking laws and if it has any history of fraudulent activities. To find out about a particular bank's rating, go to www.consumerfinance.gov or use another similar website that reviews banks according to their creditworthiness level.

2. Explore your alternatives

Keep in mind that there are many options available when choosing an online bank. However, not all of them will provide you with great services just because they have an online presence. Some might require you to pay monthly fees for using their services while other banks might offer you lower interest rates and fewer services.

3. Consider the bank's location

Check where your chosen online bank is based and see if it complies with local laws before opening an account to avoid any conflict in the future. For instance, the Patriot Act makes it mandatory for all banks operating from US soil to share information about their customers with federal government agencies. So, if you choose a foreign bank that does not comply with this law, then your money will be less safe than if you had opened an account at a US-based bank.

4. Examine the fees charged

When choosing an online bank, make sure to check the list of charges applied for each service provided by them, such as account opening, transferring funds and withdrawing cash. For instance, many banks offer cheaper fees for students. Also, if you frequently use the bank's services, then it might be better to choose one that offers free transactions or at least charges reasonable fees.

5. Look for customer support options

One of the best ways to measure the quality of service provided by a bank is to check their section related to complaints handling and how fast they reply. To see this information about your chosen online bank, you can check sites like trust pilot. If you find a large number of complaints in a particular period, do not open an account with this bank. You can also search for a bank's contact phone number and call them to check the type of service provided before opening an account.

6. Check if your chosen online bank is FDIC-insured

The Federal Deposit Insurance Corporation (FDIC) protects customer deposits in banks up to $ 250,000, which means that if one day the company closes down, you will receive this amount from federal government agencies. This insurance also covers checking accounts, savings accounts, money market accounts, and CDs held at FDIC-insured banks. by FDIC calling 1-877-275 -3342. 

7. Check if your chosen online bank works on weekends and public holidays

If you need to transfer funds quickly or if something urgent comes up at the weekend, you will not be able to access your money as most banks do not work on weekends and public holidays. So, always check their opening times before choosing an online bank so that it is easy for you to handle any situation that might arise in the future.

8. Determine how fast your chosen online bank transfers cash

Before choosing an online bank, find out how much time it takes them to transfer funds from one account to another. This information can easily be found by calling their contact center, checking their website, or searching for this information on the banks' review pages. Also, you should know that usually, money transfers can take from one business day to several weeks depending on the bank and the type of account used. So, always check this information before deciding which online bank to choose as it will help you avoid any inconvenience in the future.

Popular Online Banks to Consider

1. Bank of America

Bank of America is one of the leading banks in the country. It was established as a savings bank back in 1904 and has grown since then to become one of the nation's largest financial institutions. One reason why so many people do business with Bank of America is that they offer such high-quality products and services, including online banking.

2. Chase

Many people use chase online banking as their primary method of banking. People who travel frequently, pay bills online, and shop from home can all benefit from having a chase online banking account. Customers who have accounts with other banks will find it beneficial to open a chase online banking account.

3. Citibank 

Citibank has been around for a very long time and they know what works. After all, they are one of the world’s biggest banks and that takes some doing. They not only offer their customers free checking accounts with no ATM fees but also an incredible customer service department to take care of any issues you might have!

4. Wells Fargo Bank

Wells Fargo has a variety of banking and financial services available for you to take advantage of. As an Account Holder, you can enjoy many benefits when conducting transactions through Wells Fargo Online. Wells Fargo offers 24/7 online access to your accounts, Online Bill Payment, and more.

5. PNC Bank

PNC Bank offers state-of-the-art banking through the Internet, PNC telephone, and automated teller machines. With a wide range of accounts available PNC can help to make your money work for you. Account-holders at PNC have the privilege of using the convenience and security of doing transactions over the Internet. With easy-to-use features that will help to track your expenses and manage the way you spend, it has never been easier to have a handle on your finances.

6. Capital One 360 

Capital One is one of the leading consumer finance companies in the United States. Capital One offers many types of credit cards, along with other financial services such as checking accounts. However, Capital One also provides basic banking services available for both personal and small business use, through their online banking system.

7. TD Bank

TD Bank offers a number of products that have been designed to meet the needs of different customer segments. In addition to their traditional banking services, TD Bank has added online shopping and savings tools to help simplify money management for their customers.

Conclusion

When choosing an online bank, it is important to consider a variety of factors in order to make the best decision for your needs. By keeping the above tips in mind, you can ensure that you select a reputable and reliable institution that will meet your banking needs.