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In fact, we now have online-only banks.
Who would have thought such a thing would exist back in the days of dial-up internet?
With interest rates as high as that, who wouldnt want to open an online bank account?
in which she breaks down thepros and cons of online banking.
FDIC insurance generally covers up to $250,000 in total deposits.
So, if a worst-case scenario happens and your bank collapses, that money is federally insured and safe.
Cruze noted that most online banks are FDIC-insured.
Your money is guaranteed to be safe, Cruze said.
I think sometimes with online banks, people are like, OK, Can I trust them?
This is a big con.
On the savings side, this is a great thing, Cruze said.
Online banks arent ideal for customers who need one-on-one time with their banks service teams.
And sometimes thats just faster.
With online banks, you typically have to dig around the site or app to solve a particular problem.
This is especially true with newer online banks that are still tweaking their services and building history with clientele.
You wont find this level of local convenience with online banks.
So if you need cash … you probably will pay a hefty fee to use another ATM.
This isnt the case with the online bank(s) Cruze also uses.
Online they are so user-friendly, Cruze said.
I mean, the user-friendliness of online banks is beautiful and wonderful.
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