ADVERTISEMENT
Girl opening her first online bank account

My Experience with Online Checking

I’ve been banking exclusively online for six months now, and while I’ve experienced a few hurdles, I can honestly say I’m never going back to a brick-and-mortar bank. Are you considering switching to an internet bank? This honest, no-bones-about-it review might help.

Pros:

  • User-friendly Website & Mobile Apps
    Since you’re accessing your bank account solely online, you’re going to want a website that’s easy to navigate and a solid smartphone app. More and more people (especially millennials) are banking on-the-go, so they need a capable application that does more than simply display a balance. You can deposit checks by taking a picture that won’t save to your phone, transfer funds in a snap, and Simple Bank’s app even organizes your expenses and budget for you.

  • ATM Fee Reimbursement
    How much money have you wasted on out-of-network ATM fees? Some online banks, like Simple, have their own ATMs in retail locations. The others, like my bank, offer ATM reimbursements at the end of the month. On top of that, you aren’t penalized by your bank for using an out-of-network ATM. Convenience. They're all about convenience.

  • Low Overdraft Charges
    My previous bank charged me $35 per overdraft. My current bank only charges me nine bucks. Some online banks don’t even have overdraft fees. If you're prone to making a mistake or three, $35 becomes $100 in a snap.

  • No Ridiculous Charges
    Banks will charge you for anything. Paper statement fee: $2.50 a month. Monthly maintenance fee: $15 a month. Debit card replacement fee: $10.00. Breathing: $5.00. Jokes aside, it is such a relief to be free of those silly fees. I was pleasantly surprised when I saw zero charges on my Ally account ledger. You can receive paper statements for free, order a replacement debit card for free, and breathe easy without feeling like you’re being exploited for profit.

  • Free Checks
    Now, more people  use debit cards than checks, but most people will have to use them at least occasionally. Luckily, they haven’t been abandoned by online banks. I still use them and I was able to order free checkbooks from Ally.

Cons

  • Cash is a Hassle
    Receiving cash gifts is a double-edged sword: I’m thankful, but I don’t know what to do with this wad of paper taking up space in my usually thin wallet! I can’t deposit cash into my Ally online checking account, but other banks allow you to deposit cash…by mailing an envelope to the home office. The main thing I miss about primarily banking with a brick-and-mortar is being able to deposit cash and seeing it instantly hit my bank account.

  • Fewer Services
    The convenience of handling all your financial matters at one bank becomes a little more difficult. My bank doesn’t offer a credit card, so I ended up applying elsewhere. Also, your traditional bank probably offers loans. Mine doesn’t.

  • Call Centers
    This may be a deal-breaker for those of you who detest talking on the phone. You can do almost everything on the bank’s website or mobile app. You can even instant message customer service representatives whenever you have a general question. More specific matters, however, must be handled by calling customer service. At least the wait time is never more than five minutes.

  • Nothing is Instant
    There are perks to banking locally. For example, some state or city banks will print your replacement debit card right in front of you. Even though my card can be replaced free of charge, I have to wait for the replacement in the mail. Really, just about anything you can't handle online (which isn't much) takes about 3-5 days.

I’m practically in love with my online checking account. I no longer have to worry about annoying ATM fees or going out of my way to deposit a check. The convenience of managing my account almost entirely on my smartphone is too good to pass up. If you can go “cash free”, then an online checking account might be for you. 

Last Updated: March 18, 2016