Why You Need to Switch to Online Banking

Kat Tretina

December 28, 2018  •  2 Minute Read

Banking & Investing

When it comes to banking, it’s easy to stick with what’s comfortable. You likely signed up for a bank account with a local branch while you were a teenager — if not younger. If you’re like many, you probably are still with that same bank, even though your finances have changed.

While you’re certainly not alone, staying with your old bank could be a mistake. Online banking may offer you more features and higher returns.

5 reasons to switch banks

Here are five reasons why you should make the switch now.

1. Convenience

Gone are the days when you had to drive to the bank to deposit a check or move money into another account. Online banks, such as USAA or CIT Bank(Offer Currently Not Available), allow you to make deposits directly from your cell phone— there’s no need for you to go to a bank location at all. You can even move money around from your savings to checking and have access to your money the same day.

2. Better interest rates

Traditional banks offer notoriously low interest rates. Your money in your savings account will earn 0.1% interest if it’s lucky. But it doesn’t have to be that way!

Online banks typically offer much higher yields to savers. For example, with CIT Bank(Offer Currently Not Available), you can earn up to 2.45% APY.

3. Lower fees

Because regular banks have higher operational costs, they sometimes pass on those costs to their customers in the form of fees. Online banks tend to have lower fees than traditional banks, helping you save even more money.

4. Sync with money management tools

While some banks allow you to manage your account online, not all sync with money management tools like Mint. However, most online banks pair perfectly with these apps, helping you create a budget, save money, and work toward your financial goals.

5. Longevity

Previously, when you moved to a new state or even just a new city, transferring your bank account to a new local branch or bank was a headache. It took lots of time and paperwork, and there was sometimes gaps in between where you couldn’t easily access your money.

Online banks eliminate that hassle. When you move or relocate, there’s no need to open a new bank account; your bank travels with you. You get to keep the same account numbers, same checks, and access your money whenever you need it.

Finding a bank

There are many online banks out there, but there are two that may be especially helpful for you:

• CIT Bank(Offer Currently Not Available): If you’re looking for a high-yield savings account, CIT Bank (Offer Currently Not Available) may be for you. Offering up to 2.45% APY. You can earn several times more interest than you would with other banks. There’s a $100 minimum deposit. No account opening or monthly service fees.
• USAA: Reserved for military service members, veterans, and their families, USAA offers checking accounts you can open with just $25. And, there’s no minimum balance after that. There’s no monthly service fees, no matter how you use your account.

Managing your money

When it comes to managing your money, it’s probably time to switch your bank account to an online bank so you can take advantage of their many offerings, and start earning higher returns. By making the change, you can make your money work harder for you.