Occasional Con: Access to Cash
Deposits at online banks such as Everbank, Redneck, Schwab and ING are FDIC-insured the same way deposits at banks with branches are, so there’s no need to fear. But they have to get there first.
And this is where technology actually limits an online account’s usefulness.
If you’re depositing a paper check, online banks rely mostly on snail mail, or you’ll have to deposit it into a linked brick and mortar bank account and wait a few days for a transfer to clear. If you visited a teller at a bank branch instead, your cash would likely be available immediately. Even ATM deposits at branch banks allow a certain amount of cash to be available to customers right away.
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With ING, you’ll have to mail your checks at your expense, while Everbank provides pre-paid envelopes and has 13,000 deposit-taking ATMs nationwide. Wire transfers are another option for making deposits, but transfers to and from Schwab, ING and Everbank can take from two to five days to clear.
Draw: Human Contact
If all the details make you dizzy, online banks tend to make customer service representatives readily available without much of a push-button runaround through an automated telephone system.
But not all banks have reps available 24/7. Although Everbank customer service is available 24 hours a day by phone, ING and Schwab reps are only around during business hours.
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