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How to Choose the Best Digital Bank in 2021?

In recent years, digital banking has become more popular especially today because of the pandemic. Not only do they give you access to your accounts remotely, but digital banks also offer lower fees, better banking tools and high APYs (annual percentage yield). But the best digital banks are those that can meet an individual’s specific financial needs. And in this article, you will learn how to choose the best one.

Considerations that need to be examined

Digital or online banks do not have the same cost of expenses as your traditional brick-and-mortar institutions because they require less people and have lower operating costs. This means that they can offer you lower fees, a better online experience (since most are exclusively online), and higher rates. 

But since digital banking is a competitive market, many offer different fees and interests. So to look for the best digital bank that suits your needs, here are some considerations you need to examine.

Fees

When it comes to fees, be sure to read them carefully. If you don’t, then you might wake up one day with zero balance in your bank account. The best online bank will keep all their fees to a minimum. This includes ATM fees, monthly fees, and overdraft fees. Some banks will even reimburse charges for third-party ATMs. 

It is also important to analyze your banking behavior to determine which fees you are paying the most.

APYs

If you want to get the most of your money, you should find a digital bank that pays high competitive APYs. So do some comparison shopping so you can get a list of digital banks and their rates.

Minimums

If your digital bank has a low minimum deposit and maintaining balance, then it will not be hard to maintain. Each individual has their unique financial situation, so look for a digital bank that you find comfortable.

Products

When choosing a digital bank, carefully think about what products you are looking for. Some online banks can offer you the full financial service just like any traditional bank like a checking and saving accounts or even credit or loan applications, while some have limited offerings but are better because they specialize in them.

ATM network

To have access to your cash anywhere, ensure that your online bank has an extensive ATM network around the areas you usually go. You can do this by checking the bank’s websites on what ATMs they work on and where they can be found.

Customer service experience

Most digital banks are exclusively online, which means you cannot go to a person to ask for inquiries or help you with your transaction problems. So, make sure that customer service representatives are easy to contact and also have an online chat alternative.

Digital banking experience  

Convenience is everything in digital banking because that is one of the main reasons people use them. So, it is a must that their user interface is easy to understand and use. Read reviews online. If they have a mobile app, check what people are saying about it in the App Store and Google Play.

Safety

Above all else, make sure that the digital bank you are using is safe. Determine if they are compliant with government institutions and ensure they have a fail-safe if the bank collapses.

Conclusion

With the rising popularity of digital banks, you will surely see more of them in the coming years. So it’s going to be hard to look for the best digital banks. That is why it would be best for you to apply the considerations above to narrow down the list and find the digital bank suited for your financial needs.

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