Saying Goodbye To Brick Mortar Banks

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Friday, October 14, 2011 - 9:54am

Many consumers fed up with high fees are turning to "online only" banks.

News that Bank of America will charge five dollars a month to use their debit card and word of other new banking fees has more people are turning to internet-only banking.

Jenna Herron is a reporter with BankRate.com, which monitors brick and mortar online banks.

She says there are both positive and negative aspects to online-only banks.

"Online banks have lower overhead costs, so therefore they sometimes offer interest on deposits, higher yield banking and savings accounts, and lower fees including courtesy overdraft," she explains. "You don't have a bank on every corner. That means you don't have ATMs on every corner either, and so you might have to incur some ATM charges."

You should make sure the online bank is FDIC insured and ask how you'd deposit checks.

"Some of the online banks do have smartphone mobile apps that allow you to take a picture of your check and then deposit it that way," Herron says.

If you're uncomfortable with strictly digital banking, there are other options.

"I would encourage all consumers to think about other choices besides online banks, like community banks, credit unions which also offer free checking and lower fees," Herron advises.
 

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