Banks Finance Online

Some things are best left to tradition, but then again, maybe not. Online banking continues to grow and maybe you’ve been sitting on the sidelines, wondering whether you should go with an Internet-based bank. You haven’t had time to research the subject so you stayed put.

Then too, says Paula Milsted, director of marketing for Chesapeake Bank, a community bank, and its national online banking arm, Clear Sky Accounts, “An in-person business banker can end up being your partner through many of the complex financial decisions that arise throughout the life of a business. And home loans, usually go a lot smoother when you have a mortgage banker living where you are, as opposed to the other side of the country. Once you establish a relationship with a traditional bank, especially a community bank, they appreciate your business and tend to go above and beyond for the loyal and long-term customers,” she adds.

No matter whether you stay traditional or go for I-banking, make sure the institution is FDIC insured. That seal means that deposits are protected for up to at least $250,000 by the U.S. government.

Then look at how you use your bank. If you do all your banking electronically and have no need for a personal contact at the bank, online is probably okay by you, says Barrington. If you would miss walking into the bank, then you likely want to stick with tradition. Whichever you decide, says Barrington, “You still need to look at the cold, hard facts - how does the bank compare with its peers when it comes to cost or in the rates they offer?”