Differences between traditional banks and online banks include online banks usually offer lower fees and better interest rates, while traditional banks offer face-to-face interaction and the ability to deposit money through a teller rather than an electronic deposit, says Business Insider. Both types usually offer the same level of security.Continue Reading
Online banks usually offer lower fees and higher interest rates because they don't have the same overhead costs as brick-and-mortar traditional banks, according to Business Insider. Online banks also usually allow smaller deposits and monthly balances without charging monthly fees for accounts that don't sustain a specific balance.
A customer may be more comfortable with a teller handling his deposit rather than taking a picture of an endorsed check and making an electronic deposit, notes Business Insider. An online customer also has the option of mailing a check to deposit it if he doesn't mind waiting.
Traditional banks allow a customer to have his questions answered by a teller or bank representative rather than a FAQ section on a bank website, says Business Insider. A person who chooses a traditional bank has to be sure he visits or calls the bank between regular business hours and on days that aren't bank holidays if he has a question.Learn more about Bank Accounts