Online banks offer higher annual percentage yields on savings products and fewer fees compared to brick-and-mortar banks. However, online banks may not accept cash deposits, while brick-and-mortar banks offer in-person support and easy cash deposit options. Large brick-and-mortar banks also have robust online banking options. When choosing a bank, consider the services offered and your banking preferences.

Traditional brick-and-mortar banks have physical locations and in-person support, but often offer lower APYs on savings products. They may charge higher fees and have limited ATM networks. On the other hand, online banks typically offer higher APYs, no monthly maintenance fees, and advanced technology for online and mobile banking.

Online banks attract customers by offering better rates due to lower operating costs without physical branches. Many online banks have higher yields on savings and CDs compared to traditional banks. While traditional banks provide more services and in-person support, online banks offer a streamlined digital banking experience with minimal fees.

Some online banks do not offer cash withdrawals or deposits, but those that do may partner with third-party ATM networks or retailers for these services. Online banks generally provide customer service through phone or electronic means, with limited in-person assistance. It’s important to compare the services and products offered by both online and brick-and-mortar banks to choose the best option for your financial needs.

Having accounts at both online and brick-and-mortar banks can provide the benefits of high yields and in-person services. Consider keeping savings in an online bank for better rates and a checking account at a traditional bank for branch access. Ultimately, the choice between online and brick-and-mortar banks depends on your preferences for rates, services, and convenience.

Read more at Yahoo Finance: Brick-and-mortar banks vs. online banks: Pros and cons