customers to use their online banking services? The answer is, to
some extent, no but by and large yes, suggests a study undertaken
by financial rate research firm Bankrate.
open an online account US banks could be more accommodating.
According to Bankrate opening the average online interest paying
current account requires a minimum starting balance of $650.81
while to open a similar account at a bank branch is $376.75.
To open a non-interest paying current account the
minimum opening balance is $133.33 for an online account and $82.71
for a branch account. However, the advantage swings strongly in
favour of an interest paying online current account when it comes
to minimum balances required to avoid service fees. For an online
account the average is $843.75 while at bank branch it is
$3,461.84.
Even when service fees are incurred the advantage
is still strongly in favour of online banking where monthly fees
average $4.38 on an interest paying account compared with $11.97
for a branch account.
Go deeper with GlobalData
But, perhaps, the most glaring difference is the
interest paid. Online banks average 2.06 percent, while their brick
and mortar counterparts average a mere 0.24 percent.
For its study Bankrate evaluated 247
interest-paying accounts and 226 non-interest paying accounts at
249 banks in the top 25 metropolitan areas.
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