Is it a good idea to switch to an online bank?

• bestlife

  Member

  Topics: 2
  Replies: 20

  at

  I keep hearing and reading things about online banks, and I’m wondering if it might be a good idea to open an account, or even to switch all my accounts to an online bank.

  Do you have an account with a bank that offers services only online? If so, would you recommend it?

  mysterylady

  Member

  Topics: 3
  Replies: 15

  at

  I opened a savings account with an online bank last year. I think one of the main benefits of online banks is that since they don’t have locations that you can visit, they can offer much lower fees than traditional banks.

  Max

  Keymaster

  Topics: 2
  Replies: 18

  at

  I don’t recommend using only an online bank. I think it’s best to keep your accounts with your regular bank, and to open an additional account for your savings with an online bank.

  The reason for that is that while some online banks allow you to deposit checks only by taking pictures of them with your phone, you’ll have some problems if you want to deposit cash into your online account… Same thing if you want to withdraw some cash, you can’t really do that with an online bank that has no brick and mortar location.

  I think an online only savings account is pretty convenient, but it’s best to keep a regular account too. You can deposit cash at your brick and mortar bank, and then transfer it to your online account if you want to.

  bestlife

  Member

  Topics: 2
  Replies: 20

  at

  I see… I didn’t think of that, but it’s true that you can’t deposit money if your bank is only online! Thanks for the tip.

  King

  Member

  Topics: 0
  Replies: 5

  at

  I think online banks are pretty convenient. You can easily deposit checks with your smartphone, transfer money, or check your transactions online and quickly see if there’s any problem, or if everything is fine.

  If you feel comfortable with doing transactions online, I recommend opening an account with an online bank as I’m sure you’ll find it convenient too!

  bestlife

  Member

  Topics: 2
  Replies: 20

  at

  Sounds great!

  I was also wondering, is it possible to open an investment account with an online bank, something like a GIC?

  King

  Member

  Topics: 0
  Replies: 5

  at

  Sure! I think online banks make investments a lot more simple. And you can check and compare rates and terms before you open your account, without having to call anyone or go anywhere.

  If you’re used to doing everything online, it only makes sense to use an online bank as well.

  goldenrod

  Member

  Topics: 1
  Replies: 4

  at

  I don’t mean to brag, but I got a GIC with Omnia Direct and I think it’s the best thing ever!

  bestlife

  Member

  Topics: 2
  Replies: 20

  at

  Is it? Do they have 5 year GICs? That’s the kind of investments I’m interested in.