What are the differences between a traditional bank and an online bank?

Traditional banks and online banks have some key differences that set them apart. First, traditional banks have physical branches that customers can visit and interact with, while online banks operate entirely over the internet. This means that online banks often have lower overhead costs, and can therefore offer higher interest rates and lower fees.

Another difference between the two is the level of customer service offered. Traditional banks have in-person customer service representatives who can assist with a variety of issues, while online banks often rely on chatbots and online resources. However, many online banks have 24/7 customer support that can be reached via phone or email.

Security is another important consideration when comparing traditional and online banks. Traditional banks typically have more robust security measures in place, such as armed guards and secure vaults, while online banks rely heavily on encryption and other online security measures to protect customers' personal and financial information.

Finally, traditional banks may offer a wider range of financial products and services than online banks, such as mortgage loans and investment accounts. However, many online banks are expanding their offerings to compete with traditional banks in these areas.