4. Consider if you use ATMs often
Both types of banks usually offer ATM access. The better choice boils down to your location and banking habits.
Most banks offer ATM locator tools on their websites or mobile apps, so you can see how many ATMs are in your area. If you plan to deposit cash at an ATM, make sure your bank offers deposit-taking ATMs as well.
If you're opening an account at a brick-and-mortar bank, you're probably choosing one that has a branch near you. That gives you easy access to fee-free ATMs when you're near home. But unless your bank has a large, nationwide ATM network, you could get stuck paying $3 to $5 to make an out-of-network ATM withdrawal when you travel.
Online banks usually partner with nationwide fee-free ATM networks, but there may be none near you. Plus, you can rack up extra fees for using out-of-network ATMs (unless your bank reimburses you for this).
5. Ask yourself if you're comfortable banking online
There's little to distinguish online vs. brick-and-mortar banks in terms of online banking. Nearly every bank lets you view your balance, transfer funds, pay bills, and remotely deposit checks via website or mobile app.
The main difference here is whether or not you can visit a branch if you want to. With an online bank, you won't have that option. If you’re unable or unwilling to bank on the internet, a brick-and-mortar bank is your best bet at getting things done.
Which should you choose: online vs. brick-and-mortar banks?
The online vs. brick-and-mortar banks competition will likely go on forever because each type has definite pros and cons. Both types of bank are insured by the FDIC. Both types are also safe places to bank.
Ultimately, you should pick an online bank if you're comfortable managing your money entirely online and you prioritize high returns and low fees. But consider a traditional bank if you require specialized services or you want in-person support at a branch when you need it.
Have you decided which bank type best meets your needs? If so, you're well on your way. Next, compare top banks so you get the best of what you're looking for. Or, take a step back and consider the big picture: generally speaking, how to choose a bank.
Still have questions?
Here are some other questions we've answered: