An online bank offers 24/7 convenience and access to your account from any computer with internet connection. For those who are not familiar with online banking, it is important that they consider several things before opening an online bank account. First, one should make sure that the online bank is FDIC insured. Second, you have to determine the ratings of the bank. These ratings assess the bank’s financial health.
When choosing an online bank, take into consideration your priorities. If you want the highest interest checking rates, then consider a reward checking account. While most online banks do not have fees, there could be extra charges for a low balance or use of ATM, so make sure to read the fine print. Look out for withdrawal restriction as well.
Consider how you want to make withdrawals. A savings account online normally do not issue checks, whereas a money market account could provide checks but will restrict the number of withdrawals every month. If you want to use an ATM, make sure to check the availability in your area, fees and daily limits. With online banking, it is necessary to watch out for phishing scams. In this scam, you are asked to click a link to reveal your bank account details. If you do, then you are open to having your funds robbed by revealing your password or bank account number.