Online banks are wonderful because they offer high interest rates, banking convenience and easy access to your account. Nevertheless, there are reasons why it is not always advisable to use online bank accounts. Before you decide on opening an online account, you have to be cautious and vigilant to avoid inconveniences later on.
It is better to avoid online bank accounts because you could into bad customer service since you do not have any bank personnel to attend to your banking transactions online. There are also instances when you have to wait long for a check to clear. With online banking, you cannot ask for a cashier’s check if during emergency cases. Furthermore, deposits to your online account could be very slow.
There are cases when online banks go down. When this occurs, you cannot go to a backup branch. For more protection, always keep a local bank account open with a little cash so you will not be penniless while your online bank fixes the problem. Another thing to consider is when you use your login name and password carelessly. There is a great chance that a third party can access your account and do transactions that ends in monetary losses. A check deposit takes longer to process in an online account and could cause delay in earning interest and finalization of the transaction.