PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz1odHRwczovL3N0YXRpYy5teWZpbmFuY2UuY29tL3dpZGdldC9teUZpbmFuY2Vfdmlld3BvcnRfZGV0ZWN0aW9uLmpzPjwvc2NyaXB0PjxzY3JpcHQgYXN5bmMgdHlwZT0idGV4dC9qYXZhc2NyaXB0Ij5teWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfMScpO215ZmlXYXRjaFdpZGdldCgnbXlmaVdpZGdldF8zJyk7bXlmaVdhdGNoV2lkZ2V0KCdteWZpV2lkZ2V0XzEuMScpOzwvc2NyaXB0Pg==Jean Folger is writer specializing in real estate and personal finance. She has written for Investopedia, The Motley Fool, Business Insider and more. She is also the co-founder of PowerZone Trading, a company that has provided software, consulting and strategy development services to active traders and investors since 2004. Her goal is to help people make better financial decisions, so they have more money and time to spend on the things that matter most.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.Online banks offer many of the same products and services as traditional banks — without the option to visit a branch or get in-person help. Because online banks have few (if any) physical locations, they can keep their operating costs low. The banks often pass those savings on to customers, who cash in on lower fees and higher interest rates than traditional banks offer. In fact, interest rates at online banks are at a 15-year high, with some even topping 5%. Plus, online banks are also convenient: You can pay bills, deposit checks, check balances, and transfer cash anytime (and anywhere) with a few taps on your smartphone. Nearly two-thirds of people use digital banking services (which counts online and mobile banking) at least once a week, according to a recent survey by Bankrate. In fact, nearly one-third of people age 35-44 bank almost exclusively online. And 71% of Americans say they're willing to open a bank account onilne, according to the data analytics company FICO.It's no wonder more people are switching to online banks. We’re also entering a sweet spot where inflation is starting to slow, yet interest rates on savings accounts are continuing to climb. Translation: Your money is about to start going a lot farther. And the best way to maximize this unusual moment is to shop around among savings accounts to see where you can get the most bang for your buck. Here’s a look at the pros and cons to help you decide if an online bank is right for you.What is an online bank?Online banks are financial institutions that operate primarily (or exclusively) online. You manage your accounts using the bank’s website or mobile app and get customer support by phone, live chat, or secure messaging. Online banks vs. traditional banksOnline and traditional banks offer many of the same products and services — like checking and savings accounts and the option to pay bills and transfer money online. However, there are a few key differences to consider when choosing where to bank. Here’s a rundown: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 and cons of online bankingOnline banks have several advantages, but there are some downsides to consider. Here’s a look at the pros and cons to help you decide if an online bank is right for you. ProsConvenience. You can manage your bank account whenever (and wherever) you like, as long as you have a device and an internet connection. And many online banks offer 24/7 customer support by phone or live chat, which can be helpful if you work during regular banking hours. Lower fees. Online banks don’t have physical branches, which helps keep their overhead costs low. As a result, the best online banks typically have low fees or even no fees, which can be a welcome change if you’re used to paying high fees. Of course, every bank is different, so inquire about fees and read the fine print before opening an account. Better interest rates. Online banks tend to offer higher annual percentage yields (APYs) on different types of savings accounts, so your money can work harder. For example, the national average yield for savings accounts is 0.52% APY, according to Bankrate’s July 17 weekly survey of institutions. Meanwhile, the best online banks offer upwards of 5% APY on high-yield savings accounts. That’s the difference between earning $52 and $500-plus a year on a $10,000 deposit. It pays to shop around to find a bank that offers the best savings account interest rates. Larger mobile deposits. Most traditional banks let you deposit checks using your smartphone, but they typically limit the check size (the limit can be quite restrictive, depending on the bank). You can deposit much larger checks at an online bank — and skip time-consuming trips to a bank branch.Extra features. Online banking apps tend to be more feature-rich than what traditional banks offer. For example, some of the best online bank apps have all the usual features, plus goal trackers, financial calculators, budgeting tools, automated savings, and mobile wallet integration. Additionally, online bank apps are usually more user-friendly and intuitive, with well-designed user interfaces.ConsNo branches. Most online banks don’t have physical branches, so customer support is provided electronically via phone, live chat, secure messaging, and social media. These options may be fine for tech-savvy individuals, but it can be challenging if you prefer in-person support or have a complex financial question. No cash deposits. While it’s easy to deposit checks using your smartphone, depositing cash can be a convoluted process. You can find a linked ATM that accepts cash deposits (not all do). Or you can put the money into a traditional bank account first and then transfer it to your online account. You can also buy a money order (for a small fee) at your local post office or retailer made payable to yourself and deposit it with your smartphone. Limited ATM network. Some online banks have a small ATM network, which means you could owe third-party ATM charges for using another bank’s machine. If access to cash is a priority, look for an online bank that has a good network of fee-free ATMs — or one that reimburses you for third-party ATM fees. Not great if you’re technologically challenged. People who aren’t comfortable using computers and smartphones might find online banking intimidating and onerous (there might also be trust issues with banking online). Still, if you’re up for a challenge and have a good IT support team — say, a tech-savvy friend or grandkid — you might enjoy the flexibility an online bank offers. How to bank online safelySome people might be wary of online banking due to safety concerns. However, as long as the bank is insured by the Federal Deposit Insurance Corporation (FDIC) — or the National Credit Union Insurance Fund (NCUSIF), in the case of a credit union — your money is safe (up to $250,000 per depositor, per account type). You can find out if a bank is insured by using the FDIC’s BankFind tool or the National Credit Union Administration’s (NCUA) credit union locator. Additionally, you can take steps to protect your online banking information:Choose strong and unique passwords and change them regularly. Enable and use two-factor (or multi-factor) authentication.Avoid logging into your account if you’re on a public Wi-Fi network.Sign up for banking alerts to advise you of unauthorized transactions.Be wary of phishing scams (never click on any links you get in an email or text that appears to come from your bank. Instead, type your bank’s website address into your browser or log into your app to update any account details). Be sure you’re using the bank’s official app (it’s best to download the app directly from your bank’s website). Should you open an online bank account?An online bank is an excellent option if you want low fees, higher interest rates, and the convenience of banking anytime, anywhere. It’s also a good choice if you regularly receive big checks and don’t want to visit a brick-and-mortar bank to make deposits. However, an online bank might not make sense if having your financial details in cyberspace would make you lose sleep at night, you’re uncomfortable with the technology, or you prefer in-person banking. Of course, you can have both types of accounts. That way, you can access the best savings account rates online and get in-person help when you need it. Considering that it’s a prime moment to be saving, an online bank is certainly worth a try for at least some of your cash.Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at lauren.williamson@hearst.com.