GREENSBORO, N.C. — Your bank is probably a traditional one. You can walk into a branch when they're open and drive thru the ATM whenever you want. But an online bank only exists in cyberspace with no physical location. So why would you put your money someplace that you can't go to?
The answer is "money" apparently. While physical banks have the benefit of face to face interactions, the main allure of online banks is money.
USA today estimates the annual percentage yield or the interest the bank pays on your money in savings is 0.01%. Online banks usually offer 2% or more interest. And that can add up quickly.
So if you find a bank that you like, start by googling it. Check the bank on the Better Business Bureau's Website. Make sure it's insured by the federal deposit insurance corporation..or the FDIC. There is an online list. And see if there are any stories about it being involved in fraudulent behavior.