Internet Banking with Virtual Banks
A virtual bank is a bank that has no physical structure where you can go to conduct business. It has no branches convenient to you. You simply do all your transactions through the internet banking.
If you have a problem, you cannot go to your local branch and complain to the manager. Instead, you have to contact representatives of your virtual bank online. Sometimes, you can take care of these internet banking tasks over the telephone. If you like to deal with problems face to face, though, virtual banks are not for you.
A virtual bank does not have automatic teller machines. It usually charges you fees to use other banks' ATM's. There are some virtual banks that will reimburse you for ATM fees. This is an important thing to consider when you are comparing internet banking.
If you use ATM's a lot, you will not want to pay extra every time you use one. It matters especially with a virtual bank. If you do internet banking with one, it will be the way you usually get cash. If not, you will have to transfer funds from your virtual bank to a traditional bank account and then get the cash from that bank.
Deposits are done differently at virtual banks. When you are doing strictly internet banking, there is no one to cash checks for you. You can have steady income amounts automatically deposited into your internet banking account.
However, someone will eventually buy something from you, or you will get a rebate check. At that point you will need to make a manual deposit. Some virtual banks now have set up deals where you can make deposits to internet banking accounts through certain ATM's. Some will let you turn in deposits of checks at Mail Boxes Etc. Yet, it is still somewhat of a problem.
Do not assume that a virtual bank does not have proper insurance. Most virtual banks in the US do. To be certain, you can go to the FDIC's website and look up the name of your virtual bank you are considering. Most likely, you will find it there. Then, you can find out information about the bank's insurance with the FDIC. If you do not find it on the list, report it to the FDIC as an internet banking company without insurance.
Of course, there are security risks with virtual banking. However, most of them can be taken care of by you guarding your private banking information. Virtual banks have everything to lose if their security is breached, so they go the extra mile to assure that your internet banking is safe.
It is an age when most banking relies on computers, whether for internet banking or for transactions within a traditional bank. You cannot get away from the use of the internet being used in your banking. Internet banking by means of virtual banks just takes it one step further.
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