I’ve reviewed the best online bank accounts at Studenomics. When it comes to online banking services, some of the readers have been hesitant to make the switch because they feel that something is missing.
Studenomics reader Scott recently emailed me to tell me that he still hasn’t switched from his traditional bring-and-mortar bank account to a click-and-mortar bank account because he really appreciates the customer service that his bank provides him with.
I have to agree with Scott in a sense. I’ve also noticed that smaller credit unions provide a sense of familiarity as soon as you walk into your branch. The person at the front desk may be courteous and address you by your first name.
I also do understand that I can’t tell Scott or any other Studenomics reader what to do. It’s simply none of my business. However, the topic of online bank accounts and online banking services got me thinking. As a result, I wanted to give you guys a few questions to go over, in terms of switching to online banking services and whether it’s worth it or not.
How much are you paying for this customer services?
If it’s free than all the power to you. My biggest qualm was that my local bank was charging me “customer access” fees and various other charges. What was the point of these charges? I know that they have their own reasons but ING Direct boasts no fee checking/saving accounts.
What services does your brick-and-mortar bank/credit union offer you?
What services are you exactly paying for? I could never figure out what these services were that I was paying for. Then one day I finally inquired about this with customer service. I was told that I was being charged per transaction. This would normally not be an issue. Unfortunately, I often transfer money from my checking account to my various other accounts (retirement, vacation, savings, and investments). These transactions were all costing me money! That’s right. I was paying fees to transfer my own money around.
(Note: I have a love/hate relationships with the fact that it takes 3-5 business days to access your money from an online savings account. Love because it creates a barrier. Hate because sometimes I need the money.)
How much attention do you want?
I personally don’t care all that much. I just want someone to be there to answer my questions when I have a problem. Other than that I really don’t care. I’m more concerned with having a customer friendly online interface than I am with anything else. I want easy access to money whenever I feel like making some necessary changes.
Have you made the switch to online banking? Are you hesitant yourself? Do you feel that something is missing with online banking services?
Further reading:
Benefits of a online savings account
What you need to know about an online savings account
Best online bank accounts
{ 8 comments… read them below or add one }
I used to use ING Direct until they lowered their savings interest
I understand that completely. The only problem is that unless you’re willing to take on risk, it’s difficult to find high interest rates.
I also made the switch first to ING, and then later to PC Financial (had higher savings interest rates at the time), specifically because of the service charges I always got hit with at CIBC. However, I recently ran into a few glitches with PC. We’ve just purchased our first home and I’ve had a couple of issues with trying to get certified cheques for deposits, etc. I believe they do offer the service, but it just seems to take longer, and I have a quick closing, so I switched back to TD for the time being.
I’ve used ING Direct for 6 or more years and just started using Smarty Pig this year. We still have a brick and mortar bank account since we need a way to deposit physical checks from our hobby jobs, but ING’s customer service is better.
Other than actual check deposits, online banking is definitely my way to go!
We use Compass Bank, which is a regional bank based in Texas. They have free checking and savings, with no minimum balance. The tellers greet me by name when I walk in the door and you can basically walk in and sit down with the branch manager to ask a question.
It’s not just online banks, but I think transfers need to speed up. All the money’s digital but it takes 3-5 days to transfer from my brick and mortar to my online? That seems like we took 5 steps forward and 3 back. Are instant transfers even possible?
I share this sentiment with you. I really don’t understand why it takes a whole work week to get the money from my online bank account to my brick-and-mortar account. I simply view this as a barrier to accessing my money. However, there are also times where I really want to access my money right away. Have you had any issues with this?
I’ve never been burned by it, but it’s something that needs to change.