How to Choose the Best Online Bank for Your Financial Needs

What Is Online Banking?

Online banking, also known as Internet banking or web banking, is a method of conducting financial transactions via the Internet. With online banking, customers can access a range of services, similar to those available at a physical branch, such as making deposits, transferring funds, and paying bills online. Most banking institutions now offer online banking services, which can be accessed via desktop computers or mobile apps.

Why It's Safer Than You Think to Use Online Banking?

Two Factor Authentication

When you perform an online transaction, you might have noticed that the bank involved requires a two-factor authentication process to complete the transaction. The first step is the generation of a One Time Password (OTP) as confirmation of the transaction. The second step is an SMS Confirmation. This two-step verification ensures the security of the individual's identity and ensures the safe completion of the transaction.

High End Encryption

All the transactions you conduct take place in a highly secure and encrypted environment, utilizing state-of-the-art digital technology to guarantee that the information is transmitted from the starting point, i.e. the consumer's device, to the final destination without being compromised. This technology also ensures that your data is protected from fraudulent activities, online theft, and ransomware attacks.

Device Authentication

Banks use device authentication and a four or six-digit PIN verification process to confirm your identity as a legitimate buyer and individual and to verify if it aligns with the records on file.

How to Select the Most Reliable Online Bank ?

• Monthly fees: One of the most common types of bank fees is the monthly maintenance fee, which can quickly add up. Fortunately, there are many free bank accounts available, so there's no need to choose one that charges a monthly fee. For a fee-free option, consider opening an account with Zil Bank. Not only is it free of monthly fees, but it's also one of the best bank accounts available.
• ATM fees: Verify that the card issued by the bank does not incur any ATM fees. While some institutions may still charge fees for using out-of-network ATMs, the top online banks also offer rebates for ATM fees. Opt for a Zil debit card, which provides access to ATMs without incurring any fees.
• Minimum balance requirements:Some bank accounts require a minimum monthly fee to keep your account active, while others don't. The best online banks do not have minimum balance requirements, so you don't have to worry about maintaining a specific amount. Choose a bank that offers this type of account, so you can enjoy the peace of mind that comes with not having to maintain a minimum balance.
• Make sure the bank is FDIC insured:The FDIC does cover online banks, and most online bank accounts are FDIC-insured up to $250,000. This is common practice for all banks.

How Is an Online Bank Different From a Traditional Bank?

The primary distinction between online banks and traditional banks is the mode of access they provide. Online banks primarily offer access through mobile devices and the internet, while traditional banks typically have physical branches where you can meet with a banker in person. Despite this difference, both types of banks serve the same purpose of storing and managing your money. However, the services, features, and capabilities they offer can vary.

Online Bank

• No physical locations
• Lower fees or no fees
• Higher interest rates on savings accounts and sometimes on checking accounts
• Automatic online and mobile app access
• Quick and easy online process
• Online customer service, sometimes over the phone as well

Traditional Bank

• Brick-and-mortar branches available
• Higher fees and more additional fees
• Lower interest rates on savings accounts
• Online and mobile app access usually available
• In-person and online process
• In-person, online, and phone customer service

online banking is a convenient and secure way to manage your financial transactions through the Internet. With features like two-factor authentication, high-end encryption, and device authentication, online banking offers a level of security equal to or greater than that of traditional banking. When choosing an online bank, consider factors such as monthly fees, ATM fees, minimum balance requirements, and FDIC insurance.Ultimately, the choice between an online bank and a traditional bank will depend on individual preferences and financial needs.