Higher rates
Since internet banks don’t have to spend money on maintaining physical locations, they can offer higher interest rates for savings andchecking accountsthan traditional banks.
For instance, high-yield savings accounts from internet banks might have a 2.00% APY. For comparison, the national average is just 0.39%3, and some of the top banks in the U.S. offer just 0.01% APY on savings.4,5
Many internet banks also offercertificates of deposit(CDs) with high interest rates, including no-penalty CDs for early withdrawal.
Lower fees
Internet banks also have the upper hand when it comes to fees. Because they have fewer overhead costs than traditional banks, internet banks often charge lower fees – orno feesat all.
That means you’ll be less likely to pay monthly service fees, foreign transaction fees, overdraft fees, andATM fees, to name a few.
Accounts at large brick-and-mortar banks often carry monthly service fees of around $10, though they may be able to waive them if you meet certain requirements, such as having a $1,500 minimum balance.
Better for the environment
By receiving all your banking correspondence by email or text, internet banking reduces the amount of paper you use. You can easily access all your bank statements online or in your app.
But you don’t have to wait for those monthly statements. Another perk of having an internet bank account is the ability to receive push notifications to your phone.
For instance, you can get immediate notifications every time yourdebit cardis swiped – that’s huge for stopping fraudsters in their tracks.
Bonus:Online banking means you don’t have to drive to a bank. Less driving is a big win for the environment (and for your wallet, with gas pricesgoing up).
Accessibility
Traditional banking hours aren’t always convenient, but with online banking, you can access your bank accounts and bank services wherever there’s internet – on your computer or mobile device – any time.
You can also reach customer service by phone – in many cases, 24 hours a day, seven days a week.
Already a Chime customer? Here’show to contact Chime customer serviceon your own time.
Quick and convenient transactions
When it comes to conveniently depositing or transferring money, internet banks have traditional banks beat. You can easily transfer money from another checking account or savings account to your online bank and deposit checks using an app, eliminating the need tofind an ATM.
Some internet banks offer even more convenience. For instance, you may be able to get your paycheck up to two days early, and some banking mobile apps offerpeer-to-peer transfers– meaning you can send easily send money to friends and family for dinner or pay them back for concert tickets.
