Online banks have lower overhead costs than their traditional, brick-and-mortar counterparts because they don’t have to pay for physical branches — and they typically pass the savings on to consumers with higher rates on deposit accounts and lower rates on loans. Still, traditional banks offer in-person expertise and customer service from trained bankers. Plus, an online bank can’t notarize your documents, issue traveler’s checks or make change for you.
Whether you bank online or in person, basic banking products and services generally remain the same. Interest rates, however, might differ significantly. Before you open an account or switch banks, find out where to get the best interest rates.
