5 Reasons You’ll Be Happy to Ditch Your Physical Bank
The future of banking has arrived.
No waiting in line, 24/7 human support, little to no fees, and higher-than-average interest earnings.
Sounds too good to be true, doesn't it?
Yet, digital banks are on the rise as customers flock to greater convenience and bigger rewards for their hard-earned cash. If you're on the fence on whether or not you should try digital banking, here are five reasons you'll be happy to make the switch:
Reason #1 - You hate going to the bank.
Visiting the bank is inconvenient.
Scheduling time out of a busy day, driving in traffic, finding parking, waiting in line – generally speaking, these are your average person's least favorite activities. Unfortunately, these are the sacrifices you will make when visiting your local bank.
That is, of course, if you're lucky enough to live near a local branch.
2017 witnessed the largest number of branch closures on record – a total of 1,700 branches across the United States1. If you don't live in a "profitable region" – meaning: a large, metropolitan area – taking a trip outside of county or state lines can make your banking experience even more unbearable.
The Digital Alternative
When you bank digitally, all of your transactions are remote.
Do you need to open a new account? Or make a large financial transaction? Perhaps you need help using your mobile banking tools? With digital banking, you can do all of these activities from the comfort of your home and with the assistance of 24/7 customer support.
Reason # 2 - You never go to the bank, anyway.
Do you remember the last time you visited your bank's physical branch?
If not, you're in good company. A 2015 study by Bankrate found that nearly 40 percent of Americans had not visited a physical branch in at least six months. If you’re among these individuals, making the switch to 100% digital will be a seamless transition in your day-to-day experience.
Nearly 40% of Americans have not visited a physical branch in at least six months.
Reason # 3 – You hate paying for fees.
Remember that branch you rarely visit?
Unfortunately for you (and your wallet), you have the pleasure of paying for all of its staff and maintenance. Each service your bank offers – including ATMs, convenient locations, and friendly bank tellers – costs money to provide.
How do brick-and-mortar banks cover these costs?
By charging you fees.
While $3 here and $10 there may not seem like much, over time these fees will add up to take a large chunk out of your hard-earned cash.
[Read Next - 4 Ways Bank Fees Steal Your Wealth & How to Avoid Them]
The Digital Alternative
Because digital banks have less overhead costs, they don't charge you for features that other banks call "perks."
For example, the Axos Bank Rewards Checking account has no maintenance or service fees, no ATM withdrawal fees – we'll even reimburse you if another domestic bank charges you ATM fees – and no overdraft or non-sufficient funds fees. Thanks to their innovative business model, digital banks can pass savings onto customers in the form of reduced fees and greater rewards.
Which leads us to ...
Reason # 4 - You love getting better interest for your money.
Do you know how much interest your savings account earns?
We're willing to bet around 0.08% annual percentage yield (APY), or the national average among savings accounts2. Because of their smaller overhead costs, digital banks can offer higher interest yields than their brick-and-mortar counterparts.
For example, as of 10/23/20, the Axos Bank High-Yield Savings account earns more than 12 times the national average2 at 0.61% APY. If your High-Yield Savings account had $5,000 saved, your savings would earn an extra $30 in one year alone.
With more money in your pocket, you are better equipped to reach your financial goals even faster.
Reason # 5 – You love the feeling of security.
With identity fraud on the rise – U.S. consumers witnessed an increase of 16.7 million victims in 2017 alone3– cyber security is a great concern for customers.
Online banks understand this. Rather than merely digitizing outdated storage methods, they're born digital. Because they recognize that they are targets for hackers, digital banks are built to withstand attacks. Their small size makes them agile, which means they're quicker to adopt new security measures. As digital banks, they also have less paper trails than traditional banks, which means no unnecessary exposure of sensitive information.
Furthermore, because digital banks have FDIC insurance, your money is fully insured for up to $250,000.
Main Takeaways
If you're similar to the average American who hates going to the bank (and therefore, rarely visits), switching to a digital bank will be a seamless transition. Plus, with little to no fees, higher interest yields and an added level of security, you'll be confident in your decision to make the switch.
Are you ready to take your money to the next level?
Let Axos Bank help. We offer sophisticated banking software, 24/7 customer support, and industry-leading rates on deposit and lending products.
Get started with a revolutionary banking system today.
Footnotes
- Ensign, Rachel Louise, Rexrode, Christina & Jones, Coulter, "Banks Shutter 1,700 Branches in Fastest Decline on Record," The Wall Street Journal, February 5, 2018.
- "FDIC: Weekly National Rates and Rate Caps & Weekly Update," Federal Deposit Insurance Corporation, August 20, 2018.
- "Identity Fraud Hits an All Time High With 16.7 Million U.S. Victims in 2017, According to New Javelin Strategy & Research Study," Javelin, February 6, 2018.
5 Reasons You'll Be Happy to Ditch Your Physical Bank
This blog post was published by Axos Bank on December 20, 2018 and last updated on December 20, 2018.
