5 reasons to switch to online banks

I still remember when online banks first appeared. People were wary of them because they were new. They were wary of putting their savings at a bank they couldn't visit. They were wary of the higher interest rates. They were wary of unfamiliar names.

However, over the last few years, online banks have assuaged these fears and I believe that an online bank account is pivotal piece in your financial plan.

An online bank account isn't the same as banking online, which is one of many services your local bank may offer. Online banks are different in that they have no physical branches you can visit. Most of your interactions will be on the Web or over the telephone, not with a teller or ATM. Not having a physical location may be troubling at first but as we'll soon see, there are many reasons why you should give them a look.