When it is known that the costs of maintaining the account can exceed 200 euros per year in a traditional bank, the prospect of having nothing to pay by switching to an online bank can be very attractive. However, it is also a source of mistrust: how can a bank, however dematerialized it may be, operate without charging its customers? The answer depends on several factors, which must be analyzed in detail to fully understand how such a situation is possible.
Online banking: lower or even no bank charges
In a traditional bank, bank charges may be related to the bank card associated with the account, the insurance taken out, but also the charges paid when carrying out certain operations (immediate transfers, cash withdrawals at other banks’ ATMs, payment incidents). . This can be more than ten euros a month, especially if you have a premium bank card.
An online bank generally does not charge account maintenance fees and greatly limits the costs associated with banking transactions. The most common charges are those of the bank card, which can be charged when you decide to opt for a premium offer with better insurance and operations included. And the rates, even when they exist, are two or three times lower than those applied by a traditional bank. In short, in terms of bank charges, you are consistently a winner with an online bank.
Why are online banks cheaper?
Online banks do not have physical branches and therefore there is no rent to pay for them. This is already a considerable saving. So their staff is much smaller than traditional banks, because advisers are only reachable by phone, IM, or email. Contact is different. Finally, as the client himself is invited to carry out multiple manipulations from the bank’s website or from its mobile application, the interventions carried out by the advisors are fewer.
In short, the main reason why online banks are cheaper comes from their low operating costs. This allows them to charge their customers less and therefore attract more and more. Then comes the other thorny question: how do online banks make money?
How do online banks get paid?
Online banks earn money in the same way as traditional banks: charging commissions for payment incidents (authorized overdraft exceeded, rejected check), charging for certain services (instant SEPA transfer, abroad), but also thanks to the investments they make Your clients. If you open a Livret A, an LDDS, a life insurance with your online bank, you are a winner, and so is she.
Therefore, online banks have multiple ways to earn money, and again, these ways are very similar to traditional banks. The dematerialized banking sector has therefore not reinvented the wheel, but has nevertheless found an excellent way to attract new customers, who are looking above all to take advantage of accessible banking services without having to pay a lot of commissions. It is a virtuous dynamic, but it can still have certain limits.
Online banking: they are cheaper… under certain conditions!
In fact, not everything is necessarily rosy in the world of online banking, and you should still pay attention to any additional costs that may affect you. These costs can be essentially linked to two points: the conditions of use of the bank card and the conditions of entry.
As for the credit card, the bank may ask you to use it at least once a month so that you can keep it for free. This is generally the minimum condition, but it may well not exist: not all banks impose it.
Income conditions tend to come up a bit more often. They designate a minimum amount that the client must enter the account each month to avoid having to pay any commission. This usually represents a minimum of 1,000 euros, but depending on the offers, it can go as high as 4,000 euros. It is important to be able to contribute this amount each month to avoid fees.
If you are going to use your online account as your primary account, complying with these terms should not be a problem for you. Also, if it happened that you did not respect them for a month, you would only have to pay a few euros. But it is better to know that there may be more or less hidden fees within online banks.
Online banks can also offer you money
Finally, it should also be noted that online banks are usually very generous with their customers, offering them a welcome bonus. This represents, most of the time, a sum of cash, between 80 and 150 euros. You receive it when you open your account, or a few weeks after making your first deposit. You may also be offered credit card rates.
Online banks are constantly looking for new customers, and this is an effective recruitment method. They also provide access to often advantageous sponsorship programs, which make their clients want to recruit from their environment in turn. It may be interesting to take a look at it to benefit yourself and, perhaps, pocket even more money by sponsoring your relatives.
The BFMTV newsroom was not involved in the production of this content. BFMTV may receive compensation when one of our readers makes a purchase through the links in this article.
Source: BFM TV
