Local vs. Online: How To Get The Best Banking Experience

Going to the bank less and wondering if you should choose an online only bank over a community bank? Let's compare the options.
 

You have plenty of choices when it comes to finding a new bank in Southern Wisconsin and Northern Illinois. In fact, in the digital age, there are so many choices you no longer have to rely on finding a bank that’s closest to your house. With more choice comes more freedom in choosing your next bank. But that doesn’t mean it’s easy to choose. Whether you find yourself going to the bank less and less and are wondering if an online-only bank is the best choice, or you’re asking yourself if you should still go to your local community bank, let’s compare options. Keep reading for everything you need to know to find the best banking experience for you!

What is an Online Bank?

Online-only banks provide financial services without a network of physical branches. Account openings, transfers, bill pay, and other transactions are conducted via online banking or a mobile app. Check writing may be limited. You can take cash out from the online bank’s associated ATM network.  

What services do online banks offer?

Online-only financial institutions tend to offer basic deposit accounts such as checking and savings. They usually also offer debit and credit cards. Some may offer personal loans, auto loans, and home loans as well. However, online banks typically don’t have a full menu of financial services such as wealth management, trusts, insurance, etc. Depositing cash may be difficult, and you won’t have access to things like notarization and safe deposit boxes.

Why Do People Choose Online-Only Banks?

Internet banks’ original promise was to pass on savings in overhead costs to their customers through lower fees and higher interest rates on savings. Digitally savvy consumers who aren’t looking for much more than a checking or savings account may still find this value proposition attractive.

Better Rates and Lower Fees

As mentioned, this was the original promise of online banks. But do online banks always offer better rates and fees than traditional banks? Local banks with better rates, lower fees, and better products are often overlooked due to the belief that online banks offer the best savings rates. 

Online Banking Experience

There’s also a common assumption that Internet banks have a better online and mobile banking experience than local community banks. Most local banks offer the same cutting-edge technology and online and mobile banking features as online-only ones. 

For example, FNBT’s personal online banking services include:

• 24/7 secure online and mobile access to your FNBT accounts
• Transfer funds between accounts
• Set up account alerts 
• View monthly bank and loan statements
• Pay your bills online
• Send money to friends and family with “Pay a Person” 
• Deposit checks from your phone with our mobile banking app.

What Are the Challenges of An Online Bank?

Now that we’ve looked at the reasons why someone might choose an Internet bank, 

Making a deposit

Of course, you can set up direct deposit to your online bank account. And you can deposit checks via the mobile app. But what if you need to deposit cash? This can be a hassle. You may need an external checking account to transfer funds to your online-only bank, making it challenging to use an online bank for your primary account.

Other options for depositing cash into an online bank account include:

• Money order payable to yourself 
• Deposit at an ATM network
• Reloadable prepaid debit card

Check Writing 

Writing a check may be less common now, but there are still instances when it’s necessary. However, not every online bank will issue you a checkbook. You may have to “order” a check online, which will then be mailed to your recipient.

Customer Service

When you need to talk to someone at the bank for issues concerning your account or other matters, you can only reach customer service at Internet banks through phone calls, sometimes robotic automation systems, or online chat and email.

What is A Local Community Bank?

The FDIC defines community banks as: 

“Community banks focus on providing traditional banking services in their local communities. They obtain most of their core deposits locally and make many of their loans to local businesses.”

Local banks are usually owned and operated locally, with lending decisions made right there in the communities they serve. Community banks may have several branch locations, but they are limited to specific geographic areas instead of having a wider or national footprint.

As one of the few remaining truly-local banks in the Stateline area, FNBT has been financing local dreams of home ownership in the greater Beloit community for over 140 years. We are proud to help people put down roots, start a family, and build a life with a home loan from FNBT. Whether you come to us for a home mortgage, a checking account, or anything else, our goal, through exceptional service and excellent products, is to help all of our families succeed.

Why Do People Choose a Community Bank?

If online-only banks are so convenient and offer such attractive features, why haven’t they replaced their brick-and-mortar counterparts entirely? Let’s look at why many consumers still choose their local community bank.

Banking is Easy

With traditional banks, you still have access to a full menu of online and mobile banking features, plus the option of in-person service at your local branch. Make a deposit in the branch, at a drive-through, or with your mobile banking app. Pay bills online, make P2P money transfers, or write checks. Some checking accounts even come with free checks.

Great Customer Service

You can bank online and in person, whichever you prefer, at any time. Sit down with a bank representative or lender when you need help with an application or have questions regarding your account.

For example, FNBT is here to help when and how you need us. We’ll make it as simple as possible. Whether you want face time with a banker, a live person to answer your phone call, easy-to-use digital banking tools, or an expert to help you set up your accounts and use the technology, we’ve got what you need–right here in our local community.

More Unique Products

As mentioned, online-only banks tend to have limited basic checking and savings account options. Local banks can offer a wider variety of products, and they tailor their offerings to the needs of the community.

If you’re looking for more than just high-interest or cash-back checking, check out our one account with great BaZing benefits.

Our Second Chance checking account can help you recover from financial setbacks. 

And Health Savings Accounts (HSAs) are not offered by many banks outside of employers. If you’re enrolled in a high-deductible healthcare plan, you can enjoy tax-advantaged savings for future medical expenses.

A Sense of Loyalty to Customers

Local banks couldn’t exist without their loyal customers. That’s why we like to thank our customers by offering some great reward options:

• Cash For Good Grades: Start your kid's First Choice Savings account by bringing in their school year report card to receive cash for each A or deposit the money into their savings account. Parents can request the Good Grades cash award at the branch or online during the annual promotion period from late May to mid-July.
• Rewards for Referring a Friend: Refer friends or family online to open a FNBT checking account or fill out a teller handout.

Community Banks Are all About the Community

Local bank employees live and work in the same communities as you. Operated by community members, they also serve the community through charitable donations, local events such as shred events and coin appraisals, and sponsorship of local teams. When you bank with your local community bank, you help the community by keeping your money in the community.

Offer more than just banking

Instead of managing accounts at multiple institutions, you can have all your financial accounts and financial planning services within one institution. Simplify your finances with Wealth Management services, Investments, Estate Planning and Trusts, Retirement Accounts and Planning, and College Savings Plans–all right here at FNBT.

Open a new checking or savings account online!

Whether you prefer online and mobile banking or can’t imagine banking without your local branch and the employees you know and love, FNBT offers excellent local and online service. The choice is yours! Our goal is to help all our customers succeed by providing exceptional service and great products. When you bank with FNBT, you can expect stability, reliability, and comfort; everything you need from your local bank; a family business that understands how you feel; and a truly local banking partnership that treats you like family. Give us a try; we’ll treat you like family. Visit your nearest branch location in Argyle, Beloit, Clinton, Delavan, Darien, Elkhorn, Janesville, Monroe, Walworth, or Williams Bay, WI; or Roscoe, Winnebago, or Rockton, IL or open a checking account online or open a savings account online. Not quite ready to make the switch? Watch for these signs that it’s time to switch banks.