What’s Keeping You from an Online Financial Institution?
Let’s be honest. When was the last time you actually walked into your bank’s local branch to perform a transaction? If you are like most people today, you are performing most of your transactions online.
Online financial institutions have a host of advantages over traditional banks.
- Higher earned interest – Many of the costs incurred by traditional brick-and-mortar banks are nonexistent for online financial institutions. That means that they can afford to pay out higher interest on your deposits. Would you rather earn 0.01% or up to 2.00% APY interest on the money sitting in your account?
- Fewer fees – Banking fees have been the subject of controversy over the last few years and rightly so. Monthly fees oftentimes wipe out your earned interest for the year and sneaky banks love to charge hidden fees. For example, fees are often activated when you don’t maintain a specific balance or perform a certain number of transactions per month. Would you rather pay $15 a month or $0
- Convenience – 24/7 access. Ironically, most traditional bank customers already use online services, and it’s the primary reason for sticking with their bank. Some customers are even charged for online services. Would you rather pay $2.50 to use an ATM, or use any ATM in the world for $0?
What’s Keeping You From An Online Financial Institution?
In light of the obvious financial advantages that online services offer, what keeps people from making that switch? People are worried about security; primarily data theft and loss.
Data Theft: While data theft is a valid concern these days, traditional banks are not any safer. Traditional banks store all of your information in big online data centers which are equally vulnerable to hackers. We live in a digital age. That means all data kept by both traditional and online banks is vulnerable to data theft. What’s important is to research the security processes offered by the institution, traditional or not.
Loss: Online banks backed by the FDIC cover losses up to $250,000, just like any traditional bank customer. If you want to find out if a bank is insured by the FDIC, you can check here.
What’s the best online banking service?
We think Aspiration deserves your attention.
Here’s a quick overview of Aspiration’s Account:
- Pays you up to 2.00% APY interest - at least 100X more than the big banks offer.
- No minimum deposit – you can open an account with $10.
- No minimum balance – no minimum balance required, ever.
- No service fees - their Pay What Is Fair philosophy allows you to pick your fee, even if it’s zero.
- No ATM fees – Aspiration reimburses ATM fees worldwide.
- FDIC insured
Certified B Corp
Industry Standard Encryption
What’s not to love?
So, if you are on the fence about whether to move your money from a traditional bank, ask yourself what is holding you back.
Online institutions pay you higher interest rates, have fewer fees and are more convenient than traditional banks with the same level of security and insurance against loss.
It’s your money. Stop giving it away to megabanks and let it work for you.
It’s a Well Wallet smart move.
Based on a comparison of Aspiration’s up to 2.00% APY Interest rate to the following checking account interest rates reported by Bankrate for 2019: Wells Fargo (0.01% APY), Chase Bank (0.01% APY) and Bank of America (0.01% APY).
Aspiration Partners, Inc. and its affiliates are committed to “All Extra Services Provided at Cost,” meaning that we’ll only charge you what it costs us to provide the extra service (such as a wire transfer), and not a penny more. Besides these at-cost service charges, the only account fee you pay is the fee you choose, even if it’s $0, which is why we call it Pay What Is Fair.
All ATM withdrawal fees will be waived for your Aspiration Summit Account. In addition, your account will automatically be reimbursed for all ATM fees charged by other institutions while using an Aspiration Debit Card linked to your account at any ATM displaying the Mastercard®, Interlink®, Cirrus®, or Maestro® logos. The reimbursement will be credited to the account two business days after the ATM fee is debited from the account. Please note, there is a foreign transaction fee of one percent that is not waived, which will be included in the amount charged to your account.
Deposits are insured by the FDIC up to $250,000 per depositor. For more information about FDIC insurance coverage, please visit the FDIC website.