This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Reasons To Consider An Online Bank

The eCheck Deposit system from Ally Bank, for example, allows you to photograph or scan your checks with a smartphone and deposit them via Ally's app or website. While paper checks are becoming more of a rarity today, online banks are still doing more to attract customers who prefer them.

4. Most have extensive ATM networks

Many major online banks have partnered with national ATM networks to offer widespread, fee-free access for customers. Discover Bank, for instance, offers account access through an ATM network of more than 675,000 machines in 75 nations, and many other online banks offer their own extensive networks to provide customers easy access to cash.

Like traditional banks, using your online bank account for non-network ATM transactions may result in a fee. But according to the latest MoneyRates.com fee survey, online banks charge a lower amount than traditional banks for this privilege.

5. Your branch may be on the chopping block anyway

It's no secret that the neighborhood bank branch is falling out of favor. With even traditional banks embracing the convenience of online banking, fewer customers are finding it necessary to visit their local branch. And because these locations are costly to banks, expect to see more of them closing in the near future.

Bank of America CEO Brian Moynihan reportedly said on a 2012 conference call that the company intends to shed 750 of its branches in the years ahead. As more banks follow suit, it's possible your neighborhood branch will disappear too, leaving you reliant on distant branches or your bank's online services. If that prospect sounds unappealing, making the jump now to a dedicated online bank may make sense.

If your bank's branches are a major perk for you, you may not be ready for an online bank yet. But if you, like many customers, find yourself going longer and longer between branch visits -- or you're just tired of low rates and high fees -- online banks may offer an enticing alternative.

null
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs