Cheaper, more accessible, easy to manage thanks to a mobile application: if online banks are on the rise with users, it is because they combine advantages. They have managed to revolutionize a market that had not changed for decades and urgently needed to be modernized, for the benefit of their customers. But let’s be honest: Online banks have their drawbacks, too. Only they are not the same as those of traditional banks: often even the opposite! Here’s what you need to know about the disadvantages of online banking.
Changing banks: a real inconvenience?
You can be dissatisfied with your traditional bank for many reasons, without deciding to take the step of changing it. This is mainly because we imagine that going from one bank to another is a titanic ordeal that involves a lot of paperwork and letters to send.
It’s false ! Today, changing banks is a particularly simple process, thanks to aid for banking mobility. This solution allows you to delegate all administrative procedures to your new bank, allowing you to leave your old bank establishment for the new one. If you decide to go from a traditional bank to an online bank, you can let the latter take care of everything: account transfers, direct debits and even automatic transfers. The taxes and services to which you are subscribed are automatically informed of your change in bank details.
Please note, however, that you are not required to close your original account after this transition. However, this approach is still recommended to save money. In summary, changing banks is not an inconvenience that can prevent you from switching to an online bank.
Online banking: don’t wait to see your adviser!
This is one of the main differences between traditional banking and online banking: the entirely relative loss of human contact. In fact, online banking does not have a physical presence, as its name suggests: therefore, you cannot go to a branch to meet a designated advisor, who knows and follows your file. Online banking allows you to manage all aspects of your account yourself through one site and mobile app. The fact that no human being is asked to do this goes a long way in explaining why bank charges are very limited on the online banking side.
However, this finding must be put into perspective. Indeed, it is very likely that if you start to doubt the need to keep your account in a physical bank, it is because you rarely go to a branch, and it is possible that you have never met your bank advisor. Then, if necessary, you can contact an advisor at an online bank: the only difference is that he will talk to you via email, chat or by phone.
However, it is necessary to be aware of this gap in human contact. If you want to obtain a loan, for example, it may be advantageous to go through an adviser who knows you well and therefore keep a traditional bank for the time being to carry out this process.
Minimum income for online banking to be advantageous
Online banks generally advertise very low or even non-existent account maintenance fees. In 2022, on average, French customers of traditional banks paid 219.90 euros in bank charges, according to the latest study by the comparator Panorabanques. It’s huge ! So, inevitably, seeing the fees of 0 euros in an online bank is a dream.
Only, in order to pay nothing, you usually have to deposit a minimum amount each month into an online bank account – this is the “income condition”. Some online banks offer accounts with no deposit condition, while others have them up to 1,000, 1,600, 2,000 or even 4,000 euros. If you do not respect these conditions, fines apply: they are between 2 and 5 euros per month. This makes the online account slightly less advantageous, so make sure you meet this condition before signing up.
Online Banking: Depositing Checks and Cash Isn’t Easy
Who says absence of physical agency says deposit of checks and cash complicated, even impossible! In the case of checks, the vast majority of online banks offer their customers to send them by La Poste for collection, which can take up to a week. Sending a large check in the mail can easily cause you to break out in cold sweats.
For cash, it’s very simple: only online banks that are subsidiaries of traditional banks offer cash deposits at partner agencies. This explains why online banks rarely offer this possibility. Therefore, if you are the type who often deposits cash into your account, it is in your best interest to turn to an online bank that has one foot in the physical, at the risk of running into some problems.
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Source: BFM TV
