As smartphones progressed, so did the opportunities available for app developers and brands to expand beyond a brick and mortar operation. Banks and the rise of mobile banking are no exception. In this digital world, it only seems right that you can make balance transfers and deposit checks all from the comfort of your home. However, there are more benefits of choosing an online bank over a conventional one with branch locations. Online banks have fewer costs since they have minimal physical locations. These savings are passed onto the depositor in the form of interest rates, or the money that banks pay you for holding your money in their vaults. Banks like PNC, Chase, and Wells Fargo have interest rates that are fractions of a percent, paying only a few cents a month. Discover and Capital One on the other hand offer rates that range from one percent an onward allowing you to rack up a few extra dollars a month.
Personally, I switched my bank over to Discover for the rewards and savings. First off, it offers a checking account with 1% cash back. Usually, that is a feature for credit cards, a feature rare for your debit cards. Sure, I admit that ATM access is not as accessible as my prior PNC accounts, but my use of cash is limited to haircuts and quarters for laundry so I am doing fine nonetheless. If I were to move away, I would not have to worry about what banks are predominant in the region since Discover is virtually accessible anywhere from my smartphone or laptop. Do your research before choosing a new bank and transferring your funds. It is a hassle to close accounts and you can possibly accumulate fees while making money transfers between banks.