How to Choose an Online Bank

Step-by-Step Guide

1. 1

   Step 1: Search and research for prospective online banks.

   There are online bank ratings, comparisons, and reviews.
   
   A wealth of information is on the net in this new and booming sector of banking.
   
   Research online banks with the following questions:
   Where is their headquarters located at? How long has the company been in business? Are they listed on the stock exchange? How is the phone and email customer service reputation? Is their website easy to use and navigate? What other services do they offer?
2. 2

   Step 2: Go to the FDIC website to check the bank you are researching has this insurance.

   , Online bill payments remove the stress of mail getting lost, stolen, or delayed.
   
   The cost of stamps, envelopes, and stationary are almost gone in bill paying.
   
   Each online payment has a verification number that should be recorded.
   
   Paying a credit card bill late could result in a rate hike and paying online is fast.
   
   Payments can be made to companies or individuals and the information on each of them need only be input once (payments after that are a breeze). , This is one of the great features of online banks.
   
   Even if free ATM use is limited, they will allow a reasonable amount of free withdrawals, before ATM fees kick in.
   
   A couple of online banks might have unlimited, free ATM withdrawals, but with online bill payment, ATM and check use will decline anyway.
   
   Take the next step in convenience with an online account with a good ATM usage feature, i.e., free ATM use. , The network has to be widespread for convenience.
   
   Notice at ATMs and at card scanners, what networks they support.
   
   A couple of online banks might have a debit card rewards program. , Direct payroll deposits are faster than depositing a paycheck in person.
   
   Some banks allow customers to deposit checks using a scanner and email.
   
   Other banks supply prepaid deposit envelopes. ,, Another feature that online banks have over brick and mortar banks is that they can offer lower minimum balance requirements.
   
   Online banks also have lower or no monthly charges and at times, free checks. , Most online banks will have yields in multiples of what brick and mortar banks do.
   
   The interest posted each month will be a surprise. , To have the best services, choose an online bank from a wide geographical area, but sometimes, a brick and mortar bank with online banking may be best.
   
   For example, a small business owner may not be able to do online banking in another state if his or her deposit consists of many checks and cash. , Later, it is a good idea to have a brick and mortar account as a back up, in case you need instant cash for those unforeseen circumstances.
   
   There are alternatives for getting quick cash such as using a personal check or making a credit card cash advance. , Some banks are slow to post transactions and correct balances. , Banks are can close accounts after a period with no charges.
3. 3

   Step 3: Choose a bank that has free online bill payment.

4. 4

   Step 4: Choose a bank that allows free ATM withdrawals from any ATM in its network.

5. 5

   Step 5: Find out what networks the debit card of the online bank is compatible with.

6. 6

   Step 6: Determine how you can deposit checks.

7. 7

   Step 7: Pick a bank with a low or no minimum balance requirement.

8. 8

   Step 8: Choose a bank that has a competitive interest rate.

9. 9

   Step 9: If necessary

10. 10

    Step 10: choose a local bank that has online banking.

11. 11

    Step 11: Try a trial online bank account and keep your brick and mortar accounts.

12. 12

    Step 12: Experience the speed that transactions are posted.

13. 13

    Step 13: Switch online banks if not satisfied.

Detailed Guide

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