There are many ways digitalization has transformed the way we handle finances. In this regard, online banks and credit unions have helped people a lot. This includes lower transaction fees and higher interest rates on savings accounts and certificates of deposit.

However, choosing an online bank is a careful decision, and you will need to weigh all your options before making a final decision. This is equally important whether you are a seasoned investor or a first-time account holder.

Let’s find out the top 4 things you will need to look for in an ideal online bank for your needs.

Financial Security

Security is the most important thing you need to consider when you are dealing with online transactions. When researching online personal banking accounts, prioritize banks and credit unions that employ strong security measures in their mobile apps and web portals.

Look for banks that offer encryption technologies, multi-factor authentication, and proactive monitoring to protect your financial data. Another important thing you will need to ensure is whether the bank you are choosing is FDIC or NCUA insured to protect your deposits.

FDIC and NCUA are U.S. Government corporations that provide deposit insurance to investors. A bank account secured by these corporations ensures that your money is protected up to a certain amount.

Reviews, ratings, and testimonials from existing customers can also help you find the right bank that is reliable and trustworthy.

Fees And Account Options 

Online banks usually have lower fees associated with transactions. However, you will need to ask about this fee before you finalize on a bank. An ideal online bank often provides accounts with no monthly maintenance fees or minimum balance requirements, making it an attractive choice.

On the other hand, others may charge for services like ATM usage, wire transfers, or overdrafts. Assess your banking habits and opt for a bank that aligns with your financial needs. Additionally, consider the availability of different account types, such as savings, checking, CDs, and IRAs, to cater to your diverse financial goals.

As per SoFi, there exists no overdraft fees or charges related to account opening. Also, nobody is to be charged for minimum balance, regular maintenance, or even dormant accounts. Understanding these things will help you find the best option that meets your financial needs and is easy on your pocket.

User-Friendly App Interface

We have all been using mobile banking apps and portals. During your usage, you might have noticed that user-friendly mobile apps and web portals are easier to use than ones that have a bland interface.

The online bank you are opting for should be intuitive, easy to navigate, and responsive across various devices. Look for features such as mobile check deposit, bill payment, account alerts, and budgeting tools that enhance convenience.

You will also need to assess the availability of customer support via phone, chat, or email to address any concerns or queries quickly.

Interest Rates And APY 

Interest rates are especially important if you are going to open a savings account. An ideal online bank and credit union offers higher interest rates because of its low to no overhead, maintenance and operational costs.

APY is the annual percentage yield amount offered by different online banks. While opening a savings account, you will need to especially consider the APY offered by a specific bank. Be sure to compare multiple options by researching online and then find the one that suits your needs.

Some online banks provide competitive rates on savings accounts, CDs, or money market accounts, which can help grow your funds more effectively. However, ensure that you read the documentation regarding any introductory rates or conditions that might affect the advertised rates. This can include certain taxes and operational fees.

Secure Internet Banking: How To Stay On The Safer Side?

It’s good to be associated with online banking. But just like the benefits these banks provide, there are some cons to it, too. However, you can mitigate the risks of fraud if you take some necessary steps. So, let me give you a quick idea of it:

Keep Updating Your Passwords

Remember how we ask a person who wants cybersecurity to update their passwords often? That’s exactly the case here, too. For the very first time to log in, you have to use the password the bank provides. But as soon as you log in once, it’s time to change the password.  

These passwords are not easily guessable but are also very common in nature. Hence, the best trick to stay safe from potential fraud is updating them every month or so.

Refrain From Logging In Using Public Computers

If not extremely needed, avoid logging in to your account using public computers in libraries or cyber cafes. Since these places are mostly full of people, chances are somebody will track down your password very easily. 

In case it gets very urgent, ensure to clear out the cache as well as your browsing history. You might also try deleting your temporary files on the computer and not allowing the browser to save your ID/Password. 

Utilize Licensed Anti-Virus Software

To safeguard your computer from upcoming viruses, make sure to use licensed software that is anti-virus. Any pirated version of this software might come for free, but using them can come out as the biggest disadvantage for you. 

Also, you have to keep updating your anti-virus and ensure that they protect your confidential data forever. 

Concluding Words: Finding Out Your Ideal Digital Bank

So, that was all about how to look up the ideal online bank. By considering all these tips, you will surely land on a bank that does more than just save up your money. Also, don’t forget to have a look at the tips to secure your online bank account. 

With this, we end this comprehensive guide. Thank you for reading it till the end. I hope it was helpful and you can make the most of it. See you next time. Happy reading till then!

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