Test Your Knowledge: Facts & Fiction about Online-Only Banks
By Colleen Kane
- PUBLISHED November 01
- 4 MINUTE READ
Are brick-and-mortar banks going the way of the video store? Not quite. But online banks continue to gain popularity for a variety of reasons. Misconceptions persist about the benefits of each, however. Test your knowledge with this quick quiz.
1Are online-only banks safe?
Answer B. To confirm whether the bank you’re considering is FDIC-insured, use this search tool: https://research.fdic.gov/bankfind/
2The average interest rate and Annual Percentage Yield (APY) offered by online banks is:
Answer A. Higher rates are one of the main attractions of using online banks.
3Which of these is a way to keep your sensitive information safe when banking online?
Answer B. While Wi-Fi is not ideal, it’s safer to use if it’s your own, password-protected Wi-Fi, not a public one. But it’s better to use your cellular data on a mobile device, or use a wired connection at home.
4What security measures do most online banks offer?
Answer D. These are all features found in most online banking.
5How do fees for online banks compare to brick and mortar banks?
Answer A. Because online banks don’t have the overhead costs of banks with brick and mortar branches, they can offer lower fees or even no fees.
6What types of customer service can you expect from an online bank?
Answer D. A and B are offerings of online banks, although exact offerings depend on the bank. Some even offer live bankers on the telephone around the clock.
7Can you find no-fee ATMs when you use an online bank?
8But no free lollipops—what treats can an online bank give me?
Answer D. A and C.
Colleen Kane is a freelance writer who has written for CNBC, Fortune, Money, and many other publications.