Potential Challenges of Online Savings Accounts and How to Address Them
Top 3 Drawbacks of Online Savings Accounts
Gone are the days when we were all limited to the banks that had branches in our neighborhoods. Now, you can open a bank account on the internet, without even putting shoes (or pants) on -- what a time to be alive. Online banks have a lot of positives, but if you're a fan of traditional banks, the learning curve may be a bit steeper for you. Here are a few pitfalls to watch out for if you're opening an online savings account.
No in-person customer service
- Coping mechanism: Online banks offer robust customer service options, accessible through phone, online chat, and mobile app.
Your account doesn't come with an ATM/debit card
- Coping mechanism: Open a checking account linked to your savings for easy money transfers and ATM access.
A lack of convenient ATMs
- Coping mechanism: Research ATM coverage before opening an account or look for banks offering ATM fee reimbursements.
Despite these challenges, online savings accounts offer higher APYs, fee savings, and convenience for those comfortable with online banking activities.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.