Brick-and-mortar banks vs. online banks: Pros and cons

3 days ago 4

Libby Wells

Tue, January 20, 2026 astatine 10:36 AM CST 10 min read

Online banks typically connection higher yearly percent yields connected savings products and complaint less fees than their brick-and-mortar counterparts.
If you request to deposit currency regularly, you’ll apt privation the convenience of a brick-and-mortar bank’s ATM web arsenic galore online banks don’t judge currency deposits.
Large brick-and-mortar banks thin to put successful their technology, truthful you tin besides slope online with them.

When you’re choosing among the 3,800-plus banks successful the U.S., you indispensable determine whether you privation a slope that operates solely online, oregon 1 with carnal subdivision locations. Brick-and-mortar banks often connection much services and marque depositing currency easy, portion online banks connection temptingly precocious yearly percent yields (APYs).

As you comparison wherever to unfastened your adjacent checking oregon high-yield savings account, larn astir the pros and cons of brick-and-mortar banks vs. online-only institutions.

The main quality betwixt brick-and-mortar banks and online banks is the information that the erstwhile has carnal branches, portion astir online banks run solely online without immoderate locations you tin sojourn for in-person service. But those aren’t the lone differences:

Brick-and-mortar banks	Online banks
Physical locations	Typically nary subdivision locations
In-person enactment available	Support is constricted to telephone oregon chat
Tend to connection debased APYs connected savings and different deposit products	Usually connection higher APYs connected savings and different deposit products
Easier to marque currency deposits	Cash deposits whitethorn beryllium unavailable oregon travel with a fee
Out-of-network ATM fees are much apt to beryllium charged	ATM fees whitethorn beryllium reimbursed

Large ATM network.
Easy to deposit and retreat cash.
Wide assortment of products and services, including commercialized banking.
Advanced exertion for online and mobile banking.
In-person service.

Higher fees.
Low yields connected savings.

Depositing and withdrawing currency is casual to bash astatine a carnal bank. You tin find a subdivision and person a slope teller’s help, oregon spell to a slope ATM.

Though it whitethorn look similar online banks would automatically person the borderline successful integer tools for their customers, that’s not needfully the case. Many accepted banks, particularly the bigger ones, besides connection top-notch online and mobile banking with blase websites, highly-rated mobile apps and different integer tools. That’s due to the fact that they person the resources to put successful exertion and the motivation, since they are competing with online banks and their integer platforms.