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The best online bank would be one that addresses the needs of a customer. While each customer has varying needs, the following criteria can be used as an effective tool to assess online banks:
Interface & Services Offered
The best online banking sites offer an easy to understand secure interface, or website, and offer value added services such as email based alert notifications, transaction exporting tools, check imaging archives, online bill payment services and online funds transfer services. With regards to security, verify that the bank offers a 128-bit SSL encryption while exchanging data so that your social security number and other critical data is always properly safeguarded.
Products Offered
Online banks will offer different financial products and terms. Brick and mortar banks, or well established banks, have a large online banking presence and are more apt to offer a wide array of financial products. In contrast, online banks offer loans to a "niche" market, or a specialized type of loans or services. For example, certain online banks may offer only short term CDs, while others may offer both short term and long term CDs.
Fees & Minimum Balances
Online banks fees can vary considerably. The minimum balance required to avoid monthly service fees is very important when determining fees, so be aware of balance guidelines and associated fees if the account falls below the established amount. Value added services, such as online bill payments, also vary with respect to charges. Ensure you are aware of these charges before committing to a bank.
Rates
Internet Banks often have lean operations that allow them to extend better rates than a brick and mortar bank can offer. Make sure you compare the best online savings account rate if you intend to utilize these offerings.
What Is the Best Type of Online Bank?
