Credello: questions to ask before switching to online banking

NEW YORK – April 2, 2022 – (Newswire.com)

According to Statista, there were 1.9 billion online banking users worldwide at the end of 2020. This number is expected to reach 2.5 billion by 2024, so thousands of people are currently assessing their banking options. The banking industry has responded with an influx of new online banking options.

Making the decision to switch to online banking is more complicated than simply choosing to make a credit card payment online. The initial deposit will have to come from somewhere, in most cases from a more traditional bank account. There are also questions about the accessibility and availability of financial products that need to be answered. Here are the questions you should ask yourself before switching to online banking:

1. Are you comfortable with online technology?

This is perhaps the most important question of all. Doing business with an online bank eliminates many of the conveniences and customs that customers of traditional banks have become comfortable with. There are no lobbies, cashiers, or physical customer service desks. Online banks often serve their customers via SMS and online chat.

2. Are you getting a good interest rate on your savings?

Online banks can usually offer better interest rates because they have lower overhead than traditional banks, but that’s not always the case. Banking customers considering switching to an online institution should check their current interest rates on savings before transferring funds. Look for an online bank that can beat them.

3. Do you know your current fees?

It’s like the recommended comparison for interest rates. Most banks have monthly and annual fees. There might also be additional charges for using an ATM card. Make a list of all these fees and compare them to what the online bank offers. In most cases, some online banking fees will be lower while others will be higher. Study this carefully.

4. Do you use the ATM frequently?

Online banks have different policies when it comes to ATM cards. Some don’t offer them at all. Others provide them, but they charge a fee each time customers use them. The frequency of ATM use should be a factor in the decision to switch to online banking. It may be best to keep a physical account for the ATM card and an online bank for savings.

5. What do you need besides checks and savings?

Banking is more complex than just checking and saving. Modern bank customers invest in CDs, mutual funds and have mortgages. Many online banks offer them, but not all. Some even offer investment services that give their clients the ability to buy and sell stocks. The choice of online banking must take these needs into account.

Conclusion: Bank customers can choose both

It is not necessary to choose an online bank or a traditional bank. Many people choose both, enjoying the convenience of online banking and the more personalized service of their regular banks. It also gives them access to more financial products and expanded ATM networks. Consider all of this carefully when making your banking choices.

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Credello: questions to ask before switching to online banking

Michael J. Birnbaum