Things to Look for When Trying Online Banking

Are you interested in online banking? Using an online bank is convenient in today's world and helps eliminate paper clutter and helps you keep track of your budget. Yet, like most things in life, not all online banks are made the same. So in order to protect yourself and your money, there are some things you should ask or research before signing up for an online banking account.

Five things to look for when signing up for an online banking account:

• 1. Does the bank offer insurance?

One sign that an online bank is legit, is to check if the bank is FDIC insured. This backing will let your rest easy your money is protected. If for some reason, the company goes under, you will still get your money back. Of course, this depends on how much money is in your account, but it is nice to know that your money is protected.

• 2. Is Your Money Accessible?

Read up on how you can access your money. Check reviews and ratings. Make sure you are able to withdrawal your money when you need it. Check for the specific account type you plan to open. Is there a minimum account balance you must keep to avoid fees? If you are buying CD’s are there penalties for early withdrawal? Also, are there ATM fees or will you be reimbursed?

Many online banks allow you to transfer money to your brick-and-mortar bank without penalty. Make sure to check how long a transfer will take, especially if you are using your account for an emergency fund.

• 3. Bonuses

Many competing banks are offering bonuses just for opening an account. You will want to check bank offerings and see what the current bonuses are and if they compare to other banks.

4. Accounts Offered

Decide what type of account you want to open. Perhaps you are just looking for a savings account with higher interest rates. Online banks are able to offer more interest since they do not have the building costs of a regular bank. If you want to open a money market account, check the minimum balance required. Also, if you require checking make sure the checking account rules meet your needs, as some online banks do not allow for paper checks.

5. Security

Make sure your online bank offers premium security and you are able to safely bank online without the worry of hackers. Check reviews and see what others are saying about the online bank. Make sure there haven’t been any security breaches.

One bank that has an above-star rating with Bankrate's is CIT Bank. It is FDIC insured and offers interest rates above the national average. It is worth taking a look at.

Final Thoughts...

There are many things to consider when banking online. Remember if you are searching for an online bank, make sure that it meets your requirements. If the bank is FDIC insured, you are covered, depending on how much money you deposit and you can often earn more in interest by using an online bank. Double-check the bonuses before you sign up to make sure you are not missing out. Also, make sure you can get your money when you need it and that your bank meets online security standards.

I'm Sarah, author of I Heart Frugal. I am a mother of two, wife, and personal finance blogger. My husband and I have paid off over $100,000 in student loan debt combined and enjoy saving money on everyday things so we can use our money to travel.