Internet Checking Account
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Brick & mortar shops that once catered to every business need on the main streets of communities across the country are disappearing in favor of virtual storefronts on the worldwide web. Now banking is entering the age of the virtual storefront, albeit slowly.
Most, if not all, traditional brick and mortar banking institutions offer online services to one extent or another. What we are focusing on in this article, however, are online-only banks and more specifically, the checking accounts they offer.
Intuitively, we can all understand that online-only banks have lower overhead. Sure, they require a physical structure to house operations. What they don’t have to do is build brick and mortar branches to service the needs of their customers. They don’t have to open brick and mortar branches throughout cities, states or regions to grow. This saves money and these savings can be passed along to their customers in the form of higher interest paid on deposits, lower transaction fees and other incentives.
You can certainly open Internet checking accounts with the traditional brick and mortar banking institutions, but don’t expect to realize the same level of cost savings from them.
Real cost savings are with the Internet-only banks. Now you may be concerned about the safety of an Internet-only bank. I mean really, could they not just pull the plug and disappear. The short answer is no. In the United States, for example, they must be chartered either by the Federal or State government. They must meet all the standards required of a brick and mortar financial institution. They are Federal Deposit Insurance Corporation (FDIC) insured. Each account is insured against loss up to a maximum of $250,000.00 by the federal government of the United States of America.
Internet-only banks based in other countries must follow the regulatory requirements for their respective countries as well. Chances are, you have a basic knowledge of how safe deposits in banks are in your own country.
Lets take a quick look at the advantages of Internet checking:
Convenience
Your bank is as close as the nearest computer and it is always open. Visit the bank when it is convenient for you, 24 hours a day, seven days a week from anywhere in the world.
Services
Anything you can do with the checking account you have with your brick and mortar bank can be accomplished with your Internet checking account. Pay bills, transfer funds between accounts, see cancelled checks, balance your statement, stop payment, link to a debit card for ATM withdrawals, debit card transactions and account balance inquiries.
Savings
Quite apart from saving time, travel and aggravation, which cannot be quantified, you will enjoy reduced fees for everything from withdrawals to the cost of checks to account maintenance fees. Your account balance may qualify you to earn interest on the balance in your checking account at
a higher rate than is probable at the typical brick and mortar bank.
Internet checking is well worth a look. It offers the consumer convenience, service and savings with safety on a par with conventional checking accounts.
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