A slightly more sophisticated version of this kind of service allows you to conduct basic banking business through a web site. The second kind of online bank offers a full range of Web-based services including loan transactions, investment support, and even insurance sales. Virtual banks, like NetBank and CompuBank, are a new concept. As a result, they have to work harder than other financial institutions to attract and hold new customers. Virtual banks may offer attractive returns on CDs and money market accounts, or provide particularly good customer service.
Online banks seem to offer the best of all possible worlds.
In many cases, too, you can access and deposit your money through any ATM with no additional charge. To begin with, you are expected to handle all the paperwork that goes with transactions. That means that it's your job to set up the account, fill out loan application forms, and so forth. You won't know your banker or your teller personally, and you may not have the opportunity to chat about options with someone who knows you and your circumstances. While most online banks do have 800 numbers to call for service, others prefer that you communicate largely by e-mail.