Final answer:
Choosing to bank with an online-only bank involves a trade-off between better rates and digital convenience versus the lack of in-person services. Comparing local banks for services, fees, convenience, and reputation, considering one's own needs and preferences, is crucial. Safety is ensured by FDIC insurance, common to both online and traditional banks.
Step-by-step explanation:
Opting to use an online-only bank will greatly depend on one's banking needs and comfort with digital transactions. Online banks often provide higher interest rates and lower fees due to the lack of physical branches—benefits that can be attractive to many customers. Meanwhile, face-to-face interactions and the reassurance that come with physical branches are absent, which could be a dealbreaker for those preferring more traditional service.
When evaluating banking options, one could create a criteria chart to compare services, fees, convenience, and reputation among local branches. The best checking account program can be identified by prioritizing attributes that align with personal financial practices. For instance, if low fees and high interest rates are paramount, an online bank might be favorable, but if one values in-person customer service, a traditional bank with branches might be the better choice.
FDIC insurance is a critical factor to consider as it provides safety for deposits up to $250,000, which is a feature common in both online and traditional banks. Ultimately, the decision should balance personal preferences with financial advantages, factoring in the security, liquidity, and overall risk profile of the banking institution.