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5 Different Reasons Why You Should Avoid Online Banks – Part 1

5 Different Reasons Why You Should Avoid Online Banks – Part 1

At the pace at which technology is currently moving, there is no doubt that in just a few years, all you will need to do to pay a bill at your local cafe is to shake hands with the cafe’s personnel. Likewise, you will also need to perform a few taps on your smart-watch to apply for a personal loan and, since banks and all other financial institutions will have access to the latest technology as well, they will be able to verify your information and grant you that personal loan in a matter of seconds.

Yes, life will be a lot easier thanks to technology in the future, perhaps being completely free of physical money in the process. We are already starting to signs of that nowadays with:

– More online banking
– The use of the Internet for just about everything
– Applications for personal loans that can be done right from your couch
– More and more establishments that accept credit cards
– Smartphones that can access all your bank accounts in a few seconds
– Deposits that can be made by just taking a picture of your checks
– … and much, much more.

However, all of these online banking and personal loan applications have also brought a series of disadvantages that could very well be good enough reasons for many of you to start avoiding online banking completely, at least for now.

Here are five of the most important ones:

1. Getting Large Paper Checks:

No, we don’t mean those funny, oversized checks that some companies give away as prizes. The ones we mean are the checks you can get for a project you can be working on or for a freelance assignment you might be involved in. Getting large checks like these is not uncommon for freelancers, and guess what? They cannot be paid through direct deposit. Likewise, they tend to be extremely valuable, making it also impossible to deposit them through online banking or to use them to secure a personal loan. The reason for this is that they might exceed the amount for mobile deposits, which in most cases is of around $5,000 per day. In the same fashion, it would be simply unwise to put that check in the mail and risking getting it lost. In these scenarios, like when applying for personal loans of large amounts, the wisest course of action is to take that check and walk over to the bank to deposit it in your account by yourself.

2. You Would Like to Improve Your Relationship With Your Bank

Of course, you don’t need to make friends with just about everyone but the janitor at your local bank branch. However, there certainly are benefits to being in a good relationship with your local bank. In fact, the more cash you trust your bank to keep for you, the more likely you will be to receive a series of perks and additional benefits. These can range from simple, free checking to airport VIP lounges to extremely fast personal loan approvals and more. And even without having a ton of cash at your bank, there are still some nice perks when you are in good terms with it, like personal banking services, premier banking accounts (that offer shorter lines at several locales) and more.

So, as you can see, there are certainly a few benefits for avoiding online banking altogether nowadays. Check back for our next entry in this two-part series to find out about the other three reasons why you should stick to “real world” banking for now.

Until then.