6 reasons to reevaluate your banking relationship on Valentine’s Day
Those who like to go to their bank, or drive-thru, probably won’t be interested in an online bank. But you might want to consider at least one online bank to complement the brick-and-mortar bank, which might help you earn a higher APY.
“I think a lot of times people would also accept maybe a lower interest rate for that big bank name, like a Chase or Bank of America, knowing that, ‘OK, they’ve been around for a while, they have some credibility,’” says Donovan Brooks, a certified financial planner and founder of Storyline Financial Planning in Saint Joseph, Missouri. “‘I trust that, I’m comfortable with that and I’ll take whatever they’re willing to pay.’”
Online banks often don’t have minimum balance requirements, and your funds will be safe if you choose one that’s backed by Federal Deposit Insurance Corp. (FDIC) bank and your deposit is within insurance limits and guidelines.
Consumers who are paid in cash, however, may want to ensure there’s at least one branch or in-network ATM nearby.
