Reasons to Avoid Online Banks
Traditional banks usually have websites which allow their customers to conduct transactions online according to their comfort. However, if you are a new entrant to the concept of online banking, it is possible for you not to consider the problems you may face when you try to deal with online banks which are quite different from the traditional variety.
This article aims to give you information about online banks and help you understand certain things that can go wrong. We are also making an attempt to tell you how you can deal with these situations. You must, however, remember we are talking about online banks and not the online banking transactions which can be conducted by using traditional banking websites.
A majority of consumers are happy with their experience of online banking. They benefit from the higher interest rates on savings accounts even as they get access to the latest technology being used by the banks earlier than they would have if they were dealing with a traditional bank. Moreover, some of the issues spoken about in this article have been improved by online banks which are constantly trying to become more competitive in recent times.
Online Banks – Speed And Accounts
Quite a few things have speed up by the Internet while some things have remained slower. Opening an account with an online bank may seem to be a simple process. However, you will be required to complete an application online and may even be requested to send across a paper document with your authentication. It may seem odd to you when compared with most online transactions which can be completed relatively quickly.
Similarly, you can be held up when trying to make deposits with your account with online banks. You may receive a large check and decide you want to begin earning interest without wasting time. However, if you are going to mail the check to the online bank, you can expect a delay which can be frustrating. The only solution available to you would be to choose online banks which accept remote check deposits because the money you receive will begin to earn interest faster. However, you may still face a problem because the online bank can limit the sum of money you can deposit by using remote facilities.
An online bank is not of much help if you want to make a payment by using cashiers check. You will be allowed the option of doing a wire transfer from the online bank account and therefore must ensure that your payee is willing to accept the same.
Customer Service Is Another Deterrent With Online Banks
Even though there are many things that have improved, you may still experience difficulties with customer service provided by online banks. Unlike brick-and-mortar banks, you will not be familiar with the staff and if you are an individual who enjoys personal interaction, you may find it easier to deal with one of the traditional banking institutions. Online banks do not give you the freedom to have personal interactions with their staff though things seem to be improving.
You may be required to go through an escalation process and wait endlessly on a telephone line if you encounter any problem with the online bank you are dealing. In the event that you finally get to speak with a staff member, you may come across an individual who is knowledgeable or is just a rank newcomer. The only option left with you would be to hang up and call again hoping your call may be attended by a qualified representative. Services at online banks are being constantly improved but the problems haven’t vanished and incidences like having your bank account closed just because you demanded too much are still happening.
– Other Reasons For Avoiding Online Banks
Online Banks are faceless entities and their websites can face technical difficulties and go down. As a customer, you will not have any backup service when such incidences occur and to make matters worse, the phone lines will also be clogged up. You can protect yourself by having an account with a local bank or a credit union to ensure you have funds at your disposal during the time the online banks fix their problem.
Should You Ignore Online Banks Altogether?
Ignoring online banks altogether is not the solution to this problem unless you are fed up with the situations described above. Several reasons exist for you to consider online banks because they can offer free services and higher interest rates to make your life easier.
It is possible that you may never encounter any of the problems mentioned and have a great time with the online banks you are dealing with. Our intention was just to give you an idea of the things that can go wrong when using the services of online banks.
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