[Music] well hey you guys so a lot of things have changed over the years when it comes to money and one of the advancements that we've seen increase a lot is when it comes to online banking and all the options that are out there so investing apps you know to digital banking services there is so much to learn about this landscape and I want to make sure that you have all the information you need to make sure that you are keeping your money in the right place so today I want to share some of the basic pros and cons of online baking versus using just a traditional brick and mortar bank branch and spoiler alert I use both of these so stick around to see what I recommend overall and if you enjoy this content and want to see more be sure to hit that subscribe button that is so so helpful all right the first pro to online banking is that most are FDIC insured which means that your money is guaranteed to be safe I think sometimes the online banks people like okay can I trust them are they legitimate but do your research check into the specific one that you're looking at but you will see that majority of them yes are insured they are fine they are just like another bank your money will be safe now another Pro to online banking is that they typically have higher interest rates so on the savings side this is a great thing because when it comes to savings accounts money market accounts high yield savings accounts accounts this is a benefit that you will get from online banks over brick and mortar and simply because they don't have as many expenses that they have to keep up with you know brick and- mortar Traditional Bank people are there full-time you know they're in person there's actually a building there's a lot of expenses that come along with that and when it's just strictly online they can save a lot of money that way and the great thing is as a customer sometimes you get the better end of that deal because they're able to have higher interest rates so again when it comes to those money markets uh and especially high yield savings accounts online banks are great when it comes to this now the third Pro to online banking is that the platforms are often easier to navigate so I don't know about you but we do use a brick-and mortar bank for our checking sometimes it's just wonky like the experience there versus online they are so userfriendly I mean they have to be because they are you know an online bank but again it is easy to access your information to look at your records I mean the the user friendliness of online banks is beautiful and wonderful like the interfaces the apps all of it is really really well done usually compared to traditional Banks all right one con when it comes to online banking is that moving your money from account to account sometimes can take a little longer than a traditional bank so when you need access to this cash it could take one to two business days either to get it transferred over to another account or again to get what you need out of it now now some online banks will come with a debit card that you can use you know use for so many transactions and so obviously you can get to money quickly that way Winston and I have an online bank that we use for our high yield savings account and if we have to transfer money from that to our checking account because we're doing something some type of transaction it will take one to two business days and it sometimes can stress me out but again we get a higher interest rate there so I'm like it's great I'm great having money parked over there but you just have to plan ahead all right the second con is a lack of face-to-face troubleshooting when it comes to problems that you have so again the great thing about a brick and mortar bank is you can drive down to the branch and see a person and actually talk to a person and get what you need fix there and sometimes that's just faster um you know we had a situation where we had to change a checking account and it was getting really complicated and so we just went down to the bank and just did it in person and it was so fast so simple again it can be a little inconvenient but sometimes you can get your problem solved faster versus an online bank you're going to have to find customer service you're going to have to go you know call a line and sometimes it takes forever sometimes their customer service isn't as good of getting an actual person but again it can still be worth it all right in the same vein because online bankes are newer it's kind of a newer option companies that may not quite have all the Kink straightened out so again there's a little bit of a give and take because there are some online banks that are popping up which are great and again it's not that they're wrong but again the newer the Bank the more like okay ups and downs Could Happen whether that's actually like the interface of what you're using the bank for when when it comes to an app or a website or just different things can happen right so when you have something with a long track record they have usually worked through a lot of things going on so that you can actually you know get a smooth process so again if a bank has been around for 50 years usually they have a pretty you know easy process but if it's a newer thing starting up just know there could just kind of be some starter problems and just be aware of that all right before I share the third con for online banking and how I use both an online bank and aam mortar bank I want to tell you about something else that I am loving right now and that is delete me so scammers you guys are everywhere we're talking about online banking and can I just tell you all of our information is online in so many different places and again it is so easy for other companies to come in and buy your information and this is everything from your home address your phone number your name all of it and so companies like delete me go through and take your data off online 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fee to use another ATM okay so at the end of the day here is how I use both so online banking is for our short-term and emergency fund savings so again these high yield savings accounts that we were talking about this is where we keep most of our savings so we have some short-term savings that we're using we're not putting in Investments we just have cash on hand for things that we're doing uh around the house and different things and then we also have our emergency fund so these are in our high Yi savings account and again we don't really use it unless we're having to take some money out of that savings account to put into our checking accounts if we're doing things like around the house that we need that money for but for our everyday spending you know I mean gosh for food and electricity and like all the things we just have a checking account with a traditional bank and I've been with this bank for like 10 years and I'll just be honest it sounds like a lot of work to change it up but I do like having an actual place I can go go if I need something it's kind of old school but it just feels more established it just makes me feel comfortable so our checking accounts and all of that is with a traditional bank and then our savings is with an online bank and again when it comes to those high yield savings and money market accounts remember you can't use those as a checking account because they will put a limit on how many transactions that you can do per month with those so looking for just a traditional checking accounts that's why I like having a brick and mortar Bank all right I hope this was helpful when it comes to information again there's so much that swirls around in this world so hopefully that kind of gave you a good list to kind of figure out hey what is right for me and our family so make sure to share this episode with a friend who likes to know all the details when it comes to their money and even technology and if you take away just one thing from today it's to make sure that you keep your emergency fund in the right account and that is what I explain on my episode you can check it out right there or if you're listening on podcast click the link below all right you guys remember to take control of your money and create a life you love
