3 Reasons I Love Online Banking

Banking online has been a positive experience for me. Here's why.

I'll admit it. I'm the sort of person who prefers not to have to leave the house unless there's a pressing reason or a hiking trail calling my name. Even before the pandemic, I've always preferred to stay out of stores and do as many errands online as I can. In fact, I can't remember the last time I bought clothing in an actual store.

It's therefore not surprising that I opt to do my banking online. Here are three reasons why that works well for me.

1. It's convenient

As a full-time worker with a busy household and a gaggle of kids, I don't have a lot of time to drive all over town to get things done. And by banking online, I save myself numerous trips -- and lots of time.

When I get a check in the mail, I don't have to haul myself over to a branch to deposit it. Instead, I simply open an app on my phone, take a picture, and wait for that money to hit my checking or savings account.

Now you might argue that online banking makes it more difficult to access cash, since online banks don't always have convenient ATMs. But because I don't tend to make a lot of purchases in cash, that's not an issue for me.

I pretty much pay all of my bills online, and when I need to split bills with friends or pay them for things, I use Venmo, which is linked to my checking account. As such, cash isn't something I tend to have on hand or use.

2. I tend to get a slightly better interest rate

Let's be clear. Right now, savings account interest rates are downright terrible, and I'm currently earning very little on the money I'm keeping in the bank for emergency purposes. But compared to the savings account rates offered by brick-and-mortar banks nearby, the rate I get on my savings is higher. While that doesn't amount to much these days, during periods when interest rates are higher, it makes a difference.

The reason online banks are often able to offer more competitive interest rates is that they don't have the same overhead as physical banks. And as a customer, I might as well benefit from that.

3. The customer service is great

Not all banks are created equal when it comes to customer service. But in my experience, banking online means having a smooth experience when I need a customer service rep to help out.

Generally, when I call my bank, I'm connected with a customer service person instantly. And I've found that my bank's reps really know their stuff.

This isn't to say that brick-and-mortar banks don't provide great service. But often, to get that great service, you need to leave the house and talk to someone in person. That's something I tend to not have time for.

To be clear, there are some drawbacks to banking online. My bank, for example, has few convenient ATMs. That's not an issue for me, but it may be problematic for someone who tends to need cash on hand. But for me, online banking is a great solution. And if you've yet to explore that option, you may want to do some research and see if it's a good setup for you.