1. The Features Available Can Vary Widely – Online banking can be found with a wide variety of features available. Determine which features you want and need before you start looking for online banks. This will allow you to make sure the bank you choose offers the specific features that you are looking for.
2. Physical Branches May Not Be Available – Some online banks are simply an extension of a traditional bank with physical branches while others are exclusively located online. If you frequently receive paper checks or money orders then you may want to choose a bank that is present online and locally.
3. There May Be Transaction Limits In Place – Some online banks offer a very low transaction amount each month while others may offer unlimited transactions. Make sure you know how many transactions you are allowed each month without being charged additional fees. These fees can add up if you do a lot of banking each month and only have a small number of transactions allowed.
4. The Account Types Available Can Vary Widely – The accounts available for online banking can be different from one bank to the next. Some banks may only offer savings and checking accounts to customers, while others may offer money market accounts and other types for a diverse range of products.
5. Physical Deposits And Account Set Up May Take Longer – If you choose a bank without any physical locations it can take longer for you to set up the account and to deposit physical financial instruments like checks and money orders. In some cases these items must be physically mailed and this can cause a delay of up to a week before the funds are credited to your account.
6. Internet Only Banks Usually Have Lower Costs – Remember the cost savings that you can see from choosing an online only bank. These financial institutions do not have the same overhead that physical banks do, and the savings are typically passed on to the customers.
7. Bill Payments Can Be Automatically Scheduled – Online banking allows you to schedule online bill payments with the click of the mouse in most cases. This saves you the time and expense of writing out a check and using a stamp.
8. Protect Your Financial Information – Make sure that any online bank that you choose to do business with uses a website that is fully encrypted and completely secure. Your financial information is very valuable to thieves and you want to ensure that no unauthorized access is allowed. The most up to date security methods and features should be used to protect your financial and account information.
9. Compare Online Banks To Find The Best One For Your Banking Needs – Do not open an account at the first online bank that you come across, or choose a bank simply because they offer you a free toaster. Take the time to compare the options so you can be sure you get the best banks for your specific banking needs.
10. Interest Rates Offered Can Vary Significantly – Some banks will offer better interest rates for your money than others. This is a consideration with online banking and one that you need to remember when evaluating each banking choice.