Online Banking Report

Consumers have many options to choose from when it comes to their banking needs. It can be confusing to sort out the advantages and disadvantages of each. Here, we look at main options: traditional banks, credit unions, and bank online.

Traditional Banks

Most people have at least one account in "bricks and mortar" of traditional banks. This includes national institutions and multinational, like Wells Fargo, HSBC or Deutsche Bank.

Bank offers services such as checking and savings accounts, retirement accounts and investment options. You access your money at a physical location such as a branch or ATM or through online services. The bank also offers services for consumer loans, mortgages, and other loans.

While traditional banks offer most of the services and flexibility in terms of access, many accounts will cost banking services and plans, which can be costly.

Credit Unions

A credit union is a financial cooperative. As a co-op, they are owned by members, account holder. Consequently, costs and service fees are often lower than what is charged by traditional banks.

Credit unions generally offer the same services as a traditional bank, but trying to differentiate themselves by becoming more community and customer oriented. In the survey, credit unions often outperform traditional bank in terms of customer satisfaction.

However, because of their roots in the community, many credit unions do not defend national location or ATM. As a result, it can be expensive to access your money outside your community. However, some credit unions are trying to avoid this problem by partnering with other agencies to allow members to access their money from a wider range of service providers.

Bank Online

 As a relatively new addition to the financial industry, bank online have the smallest shares of the overall market in terms of customers and deposits. However, they continue to grow in popularity.

Major online banks such as ING provide all core services that customers expect from the bank, such as checking and savings accounts, investment options and mortgages. However, interest rates and fees for account service is often better as an online bank has no physical branches overhead guard and staff. Some online banks even offer free checking accounts!

But as credit unions, online banks have less comprehensive presence of physical weakness. While many debit cards offer to their customers, you might have to transfer to a physical branch If you want to do more than make a purchase retail.

Depending on your needs, traditional bank, credit union or bank online is probably the most appropriate. Each has it's own set of advantages and disadvantages. Before trusting an institution with your money, take the time to know the services and options that are most important to you.