5 Tips for Choosing a Safe Digital Bank
Digital banks are making a big splash in the financial industry as more and more people turn to them for fast and convenient ways to transfer money, pay bills, and even make deposits and withdrawals. Although these banks provide many benefits to their users, there are several things you should know before choosing one over another so that you can make an informed decision about your banking needs. Here are five tips to help you choose the best digital bank possible!
1. Check Online Reviews
Not all digital banks are created equal, so it’s important to check online reviews before choosing a bank. If you’re considering let’s say Revolut then going to Google, entering “Revolut review” and reading the results from reliable websites would be the first step to take. Even if you’re not going to work with one of these companies directly, do yourself (and your money) a favor and vet them first! Keep an eye out for security updates and new features that may have changed over time. Additionally, see if there have been any reported hacks on any given website. If they’ve had security breaches in the past, you probably don’t want to use them as your primary banking institution—but they might be better suited as an alternative to traditional bank accounts or other digital options.
2. Shop Around
Checking account providers come in all shapes and sizes. And, unlike retail banking options that are limited to local banks, there are plenty of financial institutions to choose from—some of which even operate as mobile apps. It’s important to shop around if you’re looking to open a checking account with a digital bank. Compare fees and interest rates across different providers and take time to think about what features you really need out of your checking account. The more comparisons you can make, the better chance you have at finding an option that is right for your personal or business needs. Just remember: If it seems too good to be true, it probably is.
3. Understand the Security Measures
Before you choose a digital bank, do your research and make sure that it has strong security measures in place. Are passwords encrypted? Is two-factor authentication required? Look out for secure socket layer (SSL) encryption, which can prevent hackers from gaining access to your account. You should also avoid storing sensitive information in an online vault or password manager like LastPass; instead, use dedicated passwords and only change them periodically.
4. Know Where Your Information Is Stored
If you don’t know exactly where your data is being stored (and who has access to it), that should be a red flag. Take a few minutes to find out exactly where your information will be stored, especially if you plan on making regular deposits. Different banks use different systems and security measures, so do some research before choosing one. If you have any doubts about what you read online, contact customer service and ask questions directly. Make sure all of your concerns are addressed before moving forward with an account.
5. Make Sure Customer Service Is 24/7
When choosing a digital bank, it’s important to ensure customer service is always available. Even if you’re most likely to use your new bank via their mobile app, don’t overlook in-person options—it could save you time and hassle later on down the line. If you anticipate having questions about where your money is going or what it takes to manage your account, make sure you can easily get answers 24/7. The ability to reach someone immediately when your balance drops below zero could make all of the difference when avoiding overdraft fees.