When we use traditional banks, we usually have to pay many fees. Monthly maintenance, overdraft, non-sufficient funds, and withdrawal fees are a few examples. The majority of online banking platforms do not have monthly payments.
Furthermore, some of them do not require a minimum account balance. As a result, we no longer have to worry about paying non-sufficient funds fees.
Increased interest rates
Customers benefit from online banking, but platform providers benefit as well. Because of the lack of a physical institution, the providers must charge lower fees. They, for example, do not have to worry about employing many people or managing multiple bank branches.
As a result, they can offer their customers higher interest rates. The APY of savings accounts on an online banking platform is typically higher than that of a traditional banking system.
It is quick
We are no longer required to wait in line at the bank to obtain our account balance or transaction history. We can easily find this information by logging into our online account. This procedure only takes a few minutes.
Cons of online banking
Inadequate one-on-one assistance
Although we would like to manage our finances independently, not all of us are financially literate. As a result, we may require assistance in one or more areas. When this is the case, having a one-on-one conversation with an expert in that field is preferable.
Some online banking platforms do not have physical locations where we can get the help we require. Customers can instead get support by emailing or calling the customer service office.