Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Market Insanity

Advantages of Online Banks

The best online banks are growing in popularity, thanks to these advantages. You will surely notice some benefits of banking online versus the traditional in-person banks with physical locations.


You’ll have 24/7 account access with no more trips to a bank branch and no more waiting on line. You can check your balance anytime you want, or wire money in the middle of the night, when traditional banks are closed. Also, if you move, you don’t have to change banks. You can also access your bank account when traveling virtually anywhere around the globe.

The convenience provided by the best online banks is especially valuable for folks with disabilities that limit their movements. The logistics of using a bank branch can be daunting if you are bound to a wheelchair or don’t drive a car.

Computers offer speech synthesis and enlarged fonts, which can be very useful to bank customers who are blind or sight-impaired, and the visual nature of a device screen might ease banking tasks if you are deaf. In addition, there are a number of physical and emotional conditions that might prompt some consumers to avoid the public setting of a bank branch.

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A top online bank may offer many services and products that are only a few clicks away. You can apply for a loan, check your investments, review interest rates, and even check out products like life insurance and annuities. The same information might be spread across multiple departments and brochures at a physical bank branch.

High Savings Interest Rates

If you search for the banks that offer the highest interest rates on savings accounts and certificates of deposit, you’ll find the top of the list dominated by the best online banks. It’s no mystery – running a bank is less expensive if you don’t have to pay for and staff brick-and-mortar branch offices. The top online banks pass on (some portion of) the savings to customers, which means more interest income in your pocket.

Lower Fees

As with higher savings rates, low fees are part and parcel of the lower cost structure of top online banks.

Good Technology

The best online banks deploy some of the money that isn’t needed for maintaining bank branches into technology to make the online experience easier and safer.

Features like photo-checks allow you to deposit checks at your convenience. The top online banks invest heavily in their digital infrastructures to help ensure customers receive safe and reliable service. After all, if your online bank’s website often suffers from sluggish performance, you might be tempted to switch to a competitor. Customer retention drives online banks to use the latest hardware/software solutions.

Money Management

It’s easier to monitor and manage your money when your bank is online. You can check your balances as often as you like, and immediately flag transactions that you don’t recognize.

Most of the best online banks provide a transaction download facility that feeds into money management software such as Quicken. Many online banks offer real-time alerts that you can set to warn you of specific events, such as low account balances or money wired out of the account. These alerts can help you avoid fees for bounced checks or insufficient funds.