What is an online bank?

Online banks are institutions that work mostly or exclusively online. Many brick-and-mortar banks (meaning banks with physical branches you can visit) allow you to access your accounts through their websites or mobile apps — but with an online bank, everything happens online.

Is an online bank better than a local bank?

Many online banks offer more limited account options: Many online banks only offer limited services, such as checking and savings accounts. If you want to have multiple different financial products, such as a bank account, mortgage, and credit card all with one institution, then a larger local bank may be your best bet.

What makes a good online bank?

A good online bank will be part of an ATM network, like Allpoint or MoneyPass, with thousands of fee-free machines nationwide. If you need to withdraw cash from a non-network machine, some online banks will also reimburse any fees the ATM owner charges. Security. Online banks with standard security measures are just as safe as traditional banks.

Do online banks have in-person banking?

No in-person banking. With the exception of a couple of banks, such as Capital One, most online banks don't have any physical locations. Difficulty depositing cash. Most online banks let you deposit paper checks using their mobile apps. Some online banks don't accept cash deposits.