52% of Americans Do Most of Their Banking Online. Here Are 3 Benefits of Digital Banking

If you're not banking online yet, you may want to make the switch.

There was a time when having money in the bank meant having to go to a physical building to deposit a check. Nowadays, that's not necessary. Thanks to the convenience of online banking, you can handle all of your banking matters without having to leave your home.

A recent report from Morning Consult found that 52% of Americans now do the majority of their banking online. If you're someone who's used to a brick-and-mortar bank, you may be hesitant to make a switch. But here are three benefits you might enjoy if you move over to an online bank.

1. A higher rate of interest on your savings

It costs a lot of money to operate a physical bank. You have to pay rent to a landlord, hire staff, furnish that space, and cover the cost of utilities. 

Online banks don't bear those same costs. Sure, they have to hire employees -- everyone from customer service representatives to tech people to internet security specialists to make sure bankers' data is protected. But still, online banks don't have nearly the same overhead as brick-and-mortar banks. And because it costs them less to operate, they tend to pass savings on to customers in the form of higher interest rates in savings accounts. 

If you have a decent chunk of cash in savings, a higher interest rate on your money could make a big difference over time. And even if you only have a small amount of savings, you might as well earn more interest on it rather than less.

2. Easy transfers between accounts

When you do your banking online, you can seamlessly transfer money from one account to another. Let's say your checking account has $1,400, and you need $1,800 to cover a car repair. If you have that $400 in savings, you can click a button and make that transfer happen on the spot. That's a lot more convenient than having to go over to the bank and get that money moved around.

3. Great customer service

Customer service reps who can only interact with customers over the phone or internet chat face a challenge. They can't offer up service with a smile because their smiles can't be seen. As such, they tend to compensate by being really knowledgeable so they can give customers the service they deserve. 

Now, this isn't to say that physical bank employees aren't knowledgeable, or that they're always smiley. The point, however, is that online banks tend to put a big emphasis on great customer service because they know they need to make up for the fact there's no face-to-face interaction. 

You may be used to banking at a physical storefront. But before you write off the idea of using an online bank, it pays to read more about the benefits you might reap. Clearly, there's a reason why more than half of Americans do most of their banking online these days, so you may want to open an online bank account without closing your current one and at least see where that takes you.