Over the years we’ve kept several different bank accounts at a few of the large brick and mortar banks. Also over the years, we’ve earned basically nothing on our bank balances.
Well, at the end of 2018 we finally got tired of making nothing and decided to do something about it.
We ditched our brick and mortar banks (mostly). As crazy as I thought this would be at first, it has actually been very easy. Technology and innovation has progressed enough to make this a painless decision. It’s the same story across the board from buying things online from Amazon, cutting the cord to cable, and using Uber or Lyft while traveling.
The world is always moving forward and so are we.
Earn Higher Interest Online
Are you making less than 2% interest on your savings? If so, why are you leaving money on the table? Making a simple switch could put a stash of dollars in your pocket every month.
“But I can’t leave my bank!”
If you couldn’t possibly imagine banking online only, here are a few questions to ask yourself:
- When was the last time I physically walked into my bank?
- What services or value am I getting at my bank that I currently use?
- Am I staying at my bank due to emotions or nostalgia?
- Am I being lazy with my money?
You might discover you actually don’t need a bank that has a physical location. Since these online banks don’t have the overhead of brick and mortar banks, they can be highly competitive and offer much higher interest rates.
We switched our savings over to Ally Bank* and also opened a free checking account. Here are some of the features:
- High savings account interest rate
- No maintenance fees on checking or savings
- Access to 43,000+ Allpoint ATMs with no fees & $10 reimbursement per statement on other ATMs
- Debit Mastercard with chip
- Free checks! (Seriously.)
- Deposit checks by mobile via their app
- Transfer money easily between accounts and banks and for free with Zelle
- FDIC Insured
- 24/7 Customer Service
- Immediate notifications of any actions or issues
Does that sound like everything you already have with your current bank? Maybe you can find an online bank that’s even better? Search around and compare.
* We’re not affiliated with Ally Bank and don’t make any money referring you to them. It’s just the one we like based on features and interest rates.
Downsides of an Online Bank
Here are some of the downsides to consider when switching to an online bank:
- You can’t deposit cash
- Less ATMs available to withdraw cash
- Foreign transaction fees
- Can’t yell at someone in person
These were legitimate concerns we had.
So what did we do?
On the ATMs and depositing cash issue, that was easy. We just kept one brick and mortar bank open with the minimum necessary and connected it to my online bank through Zelle. If needed, we can deposit physical cash into one of the brick and mortar bank’s ATMs. From there we simply transfer money from the brick and mortar bank to the online bank.
Problem solved.
On the foreign transaction fees, to get around this issue we always use a travel credit card for all of our purchases. It gives us the safety to dispute transactions and the real bonus โ we get tons of Travel Reward Points! Otherwise, find a bank that doesn’t have foreign transaction fees and transfer money between your banks using their apps.
The yelling at someone in person we’d just have to get over and use phone, live chat, or secure email support. I’ve already contacted support and so far they’re great.
In the end, making money on our money was more important. Having to go through a couple extra steps to move money around and changing how we talk to support isn’t a big deal.
So before switching, ask yourself:
- What services do I need? Make a list. First, does the bank you’re considering match your needs?
- Can I transfer money between banks and accounts to mix and match the features I want?
- Do I frequently withdraw cash and don’t mind changing my routine?
- Do I have a smartphone and know how to use it to make mobile check deposits?
- Do I want to make more money on my savings?
These are pretty straightforward questions and concerns. You have to decide what’s best for you. Since we keep an emergency fund, I feel safe knowing we can access it easily if needed and that it’s also also FDIC insured. But I’m most happy putting our money to work to grow and make more money so we can reach our goals of financial security faster!
There is literally no reason to have a brick and mortar bank these days… Why get nothing when you could be getting nearly 2.5%??? Go change now!