Opening An Online Only Bank Account

There is another option that has grown in popularity in the banking industry: opening an online only bank account. Yes, a bank with no physical location.

Can I Open a Bank Account Online? 

At this point, I think it is safe to assume that we all know you can open a bank account online. Any bank or credit union will have an option to sign-up online or use their mobile app. Not all banks operate the same way, so some online experiences and designs won’t be the best.

What is An Online Only Bank Account? 

As the term “Online Only” would suggest, this is a bank account you open online, manage everything via their web or mobile apps, and generally will have no physical location to do your banking at.

So why would anyone want an online only bank account?

A great option is to have both a traditional bank or credit union and also have an online only bank account to take advantage of potential features. Below I’ll list some of the pros and cons of the online banking experience. 

Pros of Online Only Bank Accounts

- The convenience factor and access 24/7 - Less fees with traditional banks - User-friendly websites and accessible mobile apps - Simple management features for paying bills - Early deposit options, to get paid faster - Zero or refunded ATM fees - Better overdraft protection programs

Cons of Online Only Bank Accounts

- No physical branch locations for assistance - Depositing actual cash is typically not an option - While online banks offer high security, there is always a potential for data breaches - Some online only banks have limited ATMs for access - Potential limited services like brokerage account or better rates on loans (customer loyalty programs)

Are Online Only Bank Accounts Trustworthy? 

But at the basic level, yes online bank accounts are trustworthy. Any of the popular and quality accounts will have high security features for their data and of course your information.

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