Online banking has become a popular means of financial services that gives the customer convenience and is sometimes cheaper. Thus, the chief advantages include low maintenance fees that are especially appealing to consumers.
Some of the digital banks that are available in the United States include; these banks offer account with little or no maintenance charges to make banking easy for everyone. This article will examine some of the cheapest digital accounts, their characteristics and the differences with conventional banking.
Benefits of low maintenance fee digital accounts
Digital banking accounts with low maintenance fees have many benefits that make more and more people turn to them. The most important advantage is, of course, the financial effect that the company will achieve.
The conventional banks give customers subject to paying monthly maintenance fees that start from $5 to $15 and this may cause a lot of expenses in the long run. Physical banks, however, charge such fees and thus do not allow their customers to save money as much as digital banks do.
Another significant positive factor is that these accounts are convenient to use. Digital banks are a new concept of banks that function almost entirely online hence allowing people to have control over their money anytime and from anywhere.
This availability round the clock does not require the client to visit a bank branch to perform certain operations, thus saving time and effort. Also, compatibility with mobile applications makes it convenient to use with features like check deposit by mobile, real time transaction notification and fund transfer.
Besides, low maintenance fee digital accounts are usually associated with other features that can help the user save more money. Some of the benefits of digital banks include; free ATM transactions within the network, cheaper cross border transactions as well as higher interest rates on the savings account.
These characteristics therefore make digital banking attractive to the technologically friendly customer who aims at getting the most out of his/ her money.
Top low maintenance fee digital accounts
Chime
Chime is among the most used digital banks in the United States offering the service of fee-free banking. It has a checking account that has no monthly fees, has no minimum balance and does not charge any overdraft fees. Chime also offers a high-yield savings account with good interest rate which helps the customers to grow their money efficiently.
Besides, Chime has other aspects that aim at improving the convenience of the users including; Some are the early direct deposit which enables the users to withdraw their paycheck two days before the usual time and features that automatically helps in saving money.
Ally Bank
Ally Bank is another popular digital bank that provides all the necessary banking services with low charges. Its checking and savings accounts have no maintenance charges and offer better interest rate on the balance. Ally Bank also has no even the minimum fees for using other bank’s ATMs, and it also refunds up to ten dollars per statement cycle for the fees charged by other ATMs.
Ally’s simple to use mobile application and internet banking enables customers to perform transactions such as fund transfers and bill payments. Also, for its customers, the bank provides a round-the-clock customer service to help with any questions or concerns.
Discover Bank
Discover Bank as a famous credit card provider also provides good digital banking services with relatively low charges. The checking account has no monthly service charges and offers cash back rewards on the use of a debit card, a service that is not offered by many of its rivals.
Savings account with Discover allows the customer to earn a high interest rate hence enabling them to grow their savings. Beside the fee free policy, Discover Bank provides users with other features that make the services more convenient. Some of them are; a good mobile app, numerous ATM branches and very good customer service.
Comparing digital and traditional banking
The following are the distinguishing features between the digital banking accounts and the traditional banking systems. Among the most important factors, there is the cost structure. Conventional banks usually have higher charges like the maintenance charges, ATM charges, and overdraft charges.
On the other hand, digital banks do not charge high fees or charges, in fact, they either charge low fees or no fees at all and this is why they are considered cheaper by the consumers.
Another difference is that digital banks are easily accessible and convenient as compared to the conventional banks. Through digital banking, clients can work with their accounts and make various transactions and operations using their gadgets and computers at any convenient time and without visiting the bank.
This is especially convenient for those who want a more liberal kind of banking system. Conventional banks that provide online banking services still force clients to visit the bank for some operations which is not convenient.
Also, the interest rates on offers such as savings accounts are also usually higher in digital banks than in physical banks. This is because the operational expenses of digital banks are relatively low and the money that would have been used to cover these expenses can be passed to customers.
Higher interest rates allow customers to build their savings faster and effectively give them more money. Another factor that should be looked at is the aspect of security. Digital banks use various techniques to promote the security of their customers’ data and money such as encryption, multifactor authentication, and fraud detection.
However, traditional banks are also equally concerned with security; they are conventional institutions and thus cannot adapt new technologies as effectively and as quickly as online banks can.
Conclusion: choosing the right digital account
Therefore, low maintenance fee digital banking accounts are beneficial due to the lower costs, simplicity, and comparatively favorable interest rates. Chime, Ally Bank, and Discover Bank are some of the leading digital banks in the United States offering quality low-fee services for the consumers.
To select the right digital bank, one has to take into account one’s needs and wants. To help you decide which accounts are suitable for you, analyze the features, and benefits of each account like the fees, interest rates, and ease of access to the account. Thus, you can utilize the services of digital banking and at the same time cut down on costs and effectively use your money.