With increasing fears of fraud, ATM skimmers, and identity theft, people are more cautious than ever when it comes to their financial safety. It’s understandable that the concept of a bank that operates entirely online can be a bit scary, but, in reality, they’re just as safe as any brick-and-mortar traditional bank. Before you miss out on the higher rates an online savings account has to offer, let’s take a closer look at some of the most common misconceptions.
Just because a bank is online doesn’t mean your account is not FDIC insured. As long as the bank features the FDIC logo on their website and/or can be found with the official FDIC BankFind location tool, accounts come with the same protection you would receive at a brick and mortar bank.
Take a moment and count how many banks you can name. Was it 10, 20, or even 30? That’s just a drop in the bucket. There are actually more than 4,700 FDIC-insured banks in the US right now—many of which are online-only banks offering better value for your dollar than their better-known counterparts.
While online banks don’t have physical branches with in-person tellers, they still carry a full team of financial experts who monitor your accounts for fraud and are easily accessible with just a quick phone call. While branch tellers may have a line of people waiting for their assistance, online bank team members can concentrate exclusively on you.
Offering rates with more than 10 times the returns of traditional bank savings accounts right now, online bank rates can often seem too good to be true. So, what’s the catch? There is none. Online banks are able to offer much higher rates because they don’t carry the same overhead as traditional banks, which have to contend with real estate and maintenance costs and branch manager and teller salaries. Online banks’ capital savings are your savings’ gain! But it’s always a good idea to do your homework and verify the validity of any online bank before opening up an account.
Now that you know there’s no reason to be concerned about the security of online savings accounts, it’s time to find the one that also offers you a great rate with the security of FDIC insurance—and without the fees—like BrioDirect’s High-Yield Savings account.
All deposit products are provided by Webster Bank, N.A. ("Webster Bank"), an insured FDIC institution. BrioDirect is a sub-brand of Webster Bank. Webster Bank operates under the trade name BrioDirect. This trade name is used by, and refers to, Webster Bank, a single FDIC-insured bank.
Accounts that are opened via www.briodirectbanking.com and marketed by BrioDirect are Webster Bank accounts. Deposits in these accounts are made with Webster Bank. For purposes of determining how much FDIC insurance is applicable to your accounts, you need to consider not only the BrioDirect online savings, CD, or checking accounts that you maintain, but also all other accounts you maintain at Webster Bank.