Are you someone who has faithfully stuck by your physical bank branch for many years now? If answered yes, this may be the right time to kick it off for good. With the growing number of online banks in the US, the total number of consumers who have been using the brick-and-mortar branches have fallen over a long period of time. As per a report from J.D Power, 30% of the retail customers have not been to their brand for the last 1 year and this figure has increased since 2015.
Gradually, the line between online banks and their physical counterparts is blurring and the online institutions still provide some unique benefits. What are the reasons to switch to a digital bank? Here are few that you may consider.
Reason #1: Convenience
The convenience that is offered by the online banks makes them lucrative to their consumers. If you have the ability to connect to the internet, you can easily review the statements of your bank, pay off bills and even transfer your funds within no time. When you use an online bank, you don’t have to stop by a physical bank and wait in a queue to complete some application. If it’s a busy day, completing your work at a brick-and-mortar bank will get tougher. Hence, online banks are much better.
Reason #2: You won’t require switching banks when you move
If you have your account in a brick-and-mortar bank which has got its online version, you won’t require switching from one bank to another. Does your bank serve customers throughout the entire nation? If answered yes, you can retain your accounts even after you leave your place. Even when you change jobs, there’s no question of changing your bank.
Reason #3: Higher yield in savings account
Besides the expenses that are associated with running an online branch, an online bank will also let you save your money. This makes it better for the people with savings account with better rates of interest. The online banks allow you to receive higher rate on savings account than the physical counterparts just due to the fact that they have less overhead expenses.
Reason #4: You can avert hefty fees
There are few physical banks which have accounts that charge high fees and it is not always easy to waive off those charges. If you switch your account to a digital bank, this problem can be done away with altogether. When the operating costs are fewer, this can translate to fewer fees. Hence it is better to go with an online bank which offers no fees or low fees.
Reason #5: They help you meet your goals
When you have easy access to your accounts at any time of the day, you can set realistic goals and track your progress in a better manner. A good thing about online banks is that the bank offers you ability to bank from any place although you might not be able to enter physically. Nevertheless, you’re allowed to reach your fiscal goals.
Are you intrigued by the above mentioned reasons to switch to an online bank? If answered yes, make the switch as soon as possible.