Comparing Banking Institutions

Comparing

Banking

Institutions

Where are you going to put your money?

​https://www.valuepenguin.com/banking/bank-atm-fees

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ATM Fees

​https://www.nerdwallet.com/article/banking/cheap-personal-checks

​​Price of Checks

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Nerdwallet Search

​https://www.nerdwallet.com/?trk=nw_gn_5.0

​https://www.ally.com/

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​Ally Bank Website

​https://www.chime.com/online-banking/

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Chime Website

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​So what is digital banking? The key features of digital banking are affordability, convenience, and instant access to information. These features help consumers understand their financial standing in real time, as well as plan for long-term goals and unexpected emergencies. Online and mobile banking enables consumers to manage their finances remotely from anywhere, including depositing checks, transferring money between accounts, and even paying friends and family electronically through peer-to-peer (P2P) payment platforms. Some banks, known as online-only banks, have opted not to provide a physical location at all.

Multiple Choice

Digital banks are known to be ________________.

• expensive

• affordable

• far away

• on every corner

Multiple Choice

I can visit a digital only bank.

• True

• False

​The FDIC provides insurance for the funds that you deposit in FDIC-insured banks. This means that, if your FDIC-insured bank fails, the FDIC will protect you against the loss of your insured deposits whether the bank is brick and mortar or online-only. Digital banks also offer services that bridge the physical-digital divide for their customers. When it comes to withdrawals, for example, digital banks typically partner with ATM networks to offer low- or no-fee access for their customers. When it comes to deposits, digital banks often accept cash deposits through retailer partners (stores like CVS and Walgreens), though this can sometimes incur fees. Digital banks can offer these perks in part because they operate with low overhead costs since they maintain no physical branches. Providing low-cost services to retail banking customers is important, as a key audience for many digital banks’ services are unbanked and underbanked individuals.

Multiple Choice

Digital Banks are protected by the FDIC.

• True

• False

Multiple Choice

Digital banks are targeting new customers who are ______________.

• banked

• unbanked and underbanked

• trying to avoid paying taxes

• tanked