Posted by & filed under Personal Finance, Personal Finance 2e (Vickie Bajtelsmit).

With the growth in ecommerce, it is no wonder that there has been a growth in online banking as well. But what makes for a good online bank, and is it for everyone? This article covers the pros and cons of online banking.

https://www.thebalance.com/pros-and-cons-of-online-banks-1289898

 

  • The main benefit of online banking is

Convenience

High interest rates on savings rates

Friendly customer service

Greater likelihood of being approved for a loan

 

  • When compared to brick-and-mortar banks, online banks

Have surprisingly poor-quality website interface

Have the same website interface as brick-and-mortar banks

Better quality website interface and better mobile apps

Have a slower response time to customer inquiries

 

  • One of the drawbacks of online banks is

That it takes forever for them to respond to customers

They can have credibility issues

They provide lower interest rates on savings accounts

They can be down temporarily due to websites being down

 

  • Of the following services which would be one where a brick-and-mortar bank would be preferred over an online bank?

Opening a savings account

Opening a checking account

Applying for a home loan

Opening a short-term investment account

 

  • Of all the features listed below, which feature far outweighs the others when it comes to the appeal of online banking?

Online banks offer high rates on savings account

Low ATM fees since online banks have plenty of ATM agreements with other banks

Plenty of branches since they work hand in hand with brick-and-mortar branches

Ease of deposits and withdrawals for customers

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