Is it worth having a brick and mortar bank?
It could be worth it to keep one account with a local, traditional bank to take advantage of branch services and ATM networks, while keeping another savings account or CD with an online bank to get better rates.In either case, it's important to compare options between several banks to find the best rates, lower fees ...
All bank accounts charge fees, but online banks generally charge fewer. Online banks have lower overhead costs -- so they can charge you less and pay you more. Most online banks don't charge you monthly fees or have minimum balance requirements. Brick-and-mortar banks often have both.
| Type | Characteristic |
|---|---|
| Community Banks | Smaller banks that focus on specific areas |
| Peer-to-Peer Lending | Financial platforms connecting borrowers and lenders |
| Offshore Bank Accounts | Banks located in foreign jurisdictions |
| Payment Service Providers | Digital payment solutions |
If they're FDIC-insured, online banks are as safe as traditional brick-and-mortar banks in many ways. You can also take steps as a consumer to ensure your account is as protected as possible when banking online, whether you bank with a brick-and-mortar or an online bank, also called a direct or digital bank.
| Bank | Forbes Advisor Rating | Products |
|---|---|---|
| Bank of America | 4.2 | Checking, Savings, CDs |
| Wells Fargo Bank | 4.0 | Savings, checking, money market accounts, CDs |
| Citi® | 4.0 | Checking, savings, CDs |
| Barclays | 3.4 | Savings, CDs |
- Alliant Credit Union: Best credit union.
- Ally Bank: Best bank; best CDs.
- Charles Schwab Bank: Best for ATM access.
- Chase: Best for sign-up bonuses; best for branch access.
- Discover® Bank: Best online banking experience.
- Capital One 360 Checking: Best online checking account.
- Chase Total Checking®: Best for a large branch network.
- Axos Bank Rewards Checking: Best for online account options.
- Discover® Bank: Best for doing all of your banking at one place.
- Synchrony Bank: Best high-yield savings account.
| Online Bank | Checking APY* | Savings APY* |
|---|---|---|
| SoFi Bank Compare Rates | 0.50% | 1.20% to 4.60% |
| Ally Bank Compare Rates | 0.10% to 0.25% | 4.35% |
| Varo Bank Compare Rates | Not offered | 3.00% to 5.00% |
| Lending Club Learn More | Up to 0.15% | 5.00% |
If you're looking for a one-stop banking experience, you won't find a brick-and-mortar location – nor a checking account option – at Marcus by Goldman Sachs. However, it offers competitive rates on both its savings and accounts and CDs with no minimum balance requirements and minimum opening deposits, respectively.
Some Cons of Big Banks
There are downsides to big banks. In some cases, larger financial institutions may offer less competitive rates on loans and charge larger fees than community banks or small credit unions. If you take out a loan with a big bank, it might take longer to process, too.
Should I move my savings to an online bank?
But the money in your savings account could be earning more interest if you shop around for an online alternative. Online-only banks may not have physical locations, but the resulting low overhead costs mean they often offer higher interest rates and lower fees.
The biggest risk of online banks is that someone will access your savings or checking account and steal your information and money. This typically happens when your account is hacked by cybercriminals who get your username and password. However, these risks are not limited to banks that operate exclusively online.
Wells Fargo is a national brick-and-mortar bank with more than 4,000 branches and 12,000 ATMs. Branches are available in about 36 states and Washington, DC. You can apply for bank accounts, credit cards, personal loans, home loans, and auto loans.
“J.P. Morgan Private Bank is the more elite program serving ultra-high-net-worth individuals,” Naghibi said. “It offers comprehensive services in savings, checking and retirement account management. But, more than anything, it gives clients access to their bank and team with a concierge feel.”
- First Republic Bank (FRC) . Above average liquidity risk and high capital risk.
- Huntington Bancshares (HBAN) . Above average capital risk.
- KeyCorp (KEY) . Above average capital risk.
- Comerica (CMA) . ...
- Truist Financial (TFC) . ...
- Cullen/Frost Bankers (CFR) . ...
- Zions Bancorporation (ZION) .
| Bank | Assets | FDIC Insured? |
|---|---|---|
| JP Morgan Chase | $3.40 trillion | Yes |
| Bank of America | $2.54 trillion | Yes |
| Wells Fargo | $1.73 trillion | Yes |
| Citi | $1.68 trillion | Yes |
1. JPMorgan Chase. JPMorgan Chase, or Chase Bank, is the biggest bank in America with nearly $3.4 trillion in assets. It boasts a vast network of over 4,800 physical branches and more than 15,000 ATMs.
| Company | Number of complaints | Percentage of complaints |
|---|---|---|
| Chase | 759 | 4.23% |
| Wells Fargo | 554 | 3.09% |
| Barclays | 453 | 2.53% |
| US Bancorp | 372 | 2.08 |
Having multiple bank accounts may help track individual savings goals more easily. Separating finances. For spouses and domestic partners who prefer to split household finances, multiple bank accounts can help you spend and save in a way that's right for your relationship.
Generally, credit unions are viewed as safer than banks, although deposits at both types of financial institutions are usually insured at the same dollar amounts. The FDIC insures deposits at most banks, and the NCUA insures deposits at most credit unions.
Is a credit union better than a bank?
The Bottom Line. Credit unions can be ideal for a low-interest loan, lower mortgage closing costs, or reduced fees, but you'll need to qualify for membership. Larger banks may offer you more choices regarding products, apps, and international or commercial products and services, and anyone can join.
Money coach and certified financial planner Ohan Kayikchyan says it can make sense for a household to maintain four accounts: one checking account for monthly recurring bills and another for variable expenses, plus one savings account for emergency funds and a second for other savings goals.
But when you're sending your money off into cyberspace, you probably wonder: Are online banks safe? Short answer: Yes. Online banks are some of the safest places to store your money. In many ways, they're similar to traditional brick-and-mortar banks.
- Alliant Credit Union: Best for Online banks with checking and savings accounts.
- Varo Bank: Best for Online banks with checking and savings accounts.
- Discover® Bank: Best for Online banks with checking and savings accounts.
| Account | Approximate time to complete application | Monthly fees |
|---|---|---|
| Capital One 360 Checking Account: Best for ATMs | 3 to 4 minutes | $0 |
| Ally Bank Spending Account: Best for Automatic Savings | 2 to 3 minutes | $0 |
| Revolut: Best All-In-One App | 5 minutes | $0 to $16.99 |
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