Explore the Features and Advantages of Online Banking

Not all bank accounts are created equal. While most online-only banks will offer many of the same services and features as a traditional bank — sometimes even a few more — every online bank is slightly different. Look for features that will save you time and money, and ones that will provide you with the peace of mind that your money is safe and secure.

Safety Features

The first question you should ask yourself is, are online banks safe? The short answer is yes. Online banks come with a heap of safety features to protect you and your money. When considering an online-only bank, look for the security measures it has in place.

Many online banks use tools like multi-factor authentication, encryption, firewalls, and the requirement of using secure browsers to keep your data under lock and key and safe from hackers.

Things to Look For:

Multi-factor authentication
Secure Sockets Layer (SSL) encryption
AI
Biometrics
Firewalls
Secure browser restrictions
Fraud monitoring

Mobile Banking App

Your online bank account should come with an intuitive mobile banking app that allows you to easily access your account on your phone. The app should be able to handle everything from tracking your spending and savings to paying friends on the go.

Look for an app that works on all smartphone devices and allows you to transfer money, check your account balances, deposit a check, and even grow your savings automatically without ever worrying about hidden banking fees.

Things to Look For:

App notifications and transaction alerts
Mobile check deposit
Fee-free mobile payments and money transfer
Spending and saving trackers
Mobile payment app support
Online bill pay

Early Direct Deposit

The option to sign up for direct deposit is always a good idea. Not only does it minimize paperwork and hassle, it also gives you the possibility of getting your paycheck faster. Many online banks offer direct deposit, but only a handful allow their customers to receive their paychecks early.

Look for an account that has early direct deposit. For example, when you open an account through Chime, you no longer have to wait for your money. With Chime’s Get Paid Early feature, you’ll get paid as soon as your paycheck is available – which is often up to 2 days earlier¹ than traditional banks.

Things to Look For:

Ability to access your funds up to 2 days early
Direct deposit set up via mobile app
Access to a pre-filled direct deposit form

ATM Withdrawals

Despite the move to make everything paperless and online, sometimes you might still need to physically access cash. Luckily, switching to an online-only bank doesn’t mean you lose out on ATM and debit card services. Several online banks and financial institutions maintain relationships with ATMs or ATM networks and offer a method of easily locating ATMs via their banking app.

Unlike traditional banks, which often charge customers a fee for using an out-of-network ATM, most online banks don’t charge any ATM fees at all, or they offer reimbursement for any fees incurred.

Things to Look For:

No ATM fees
Debit card
ATM locator app

Built-in Automatic Savings Account

When switching to an online banking service, look for one with an automatic savings account. This will allow you to automatically schedule funds to be transferred from your checking account to your savings account. And you’ll be able to automatically transfer a portion of your paycheck directly into your savings account.

For example, saving money with Chime is a no-brainer. Every time you swipe your Chime Visa Debit Card, Chime rounds transactions to the nearest dollar and transfers the round-up from your Spending Account straight into your Savings Account². The more you use your Chime card, the more you build your savings.

Things to Look For:

Automatic round-up feature
Automatic paycheck transfer
Debit card

Credit Building Features

Building credit can take time, but if you look for an online account with built-in credit building features, you can expedite the credit building process. Look for features that turn your everyday purchases into credit-building opportunities.

Very few online banks and financial institutions offer credit building support. Luckily, Chime offers a Credit Builder Visa Secured Credit Card³ that helps you build your credit and increase your credit score by an average of 30 points⁴.

Things to Look For:

All-purchase accepted card
Cash-advance features
Account transfer
Automatic balance payment
Activity report automatically sent to credit bureaus

Fee-Free Overdraft

Brick and mortar banks have enormous operational expenses that online banks simply don’t have. This means that with an online bank or online financial institution, fees are kept to a minimum because of the low overhead costs associated with an online business. So one perk of an online bank account is saving on fees that most traditional banks would normally charge their customers, such as overdraft fees.

Consider switching to an online account with fee-free overdraft protection. Some online accounts, like Chime, offer their own version of overdraft protection that safeguards their customers from any payments or withdrawals that would result in a negative balance. Chime’s SpotMe feature lets users overdraft up to $200 on debit card purchases with no fees⁵.

Things to Look For: