PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz0iaHR0cHM6Ly9zdGF0aWMubXlmaW5hbmNlLmNvbS93aWRnZXQvbXlGaW5hbmNlX3ZpZXdwb3J0X2RldGVjdGlvbi5qcyI+PC9zY3JpcHQ+PHNjcmlwdCBhc3luYyB0eXBlPeKAnHRleHQvamF2YXNjcmlwdCI+bXlmaVdhdGNoV2lkZ2V0KCdteWZpV2lkZ2V0XzAnKTs8L3NjcmlwdD4=Sarah Li-Cain is a finance writer, podcast producer and an Accredited Financial Counsellor® specializing in banking, loans, investment and insurance topics. Her work has appeared in major outlets such as US News. CNBC Select, Fortune, and Business Insider.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.Online banking can be a convenient way to access and manage your money. Plus, it may offer other perks, such as low-to-no fees as well as the potential to earn higher interest rates on your deposits. However, some people are hesitant to open an account with an online bank. Maybe it feels too abstract since an online bank doesn’t typically have any physical branches. Or perhaps you’re worried about security. Fear not: We’ve got the facts to counter some common myths about online banking so you can make an informed decision.Myth: Online banks aren’t safeFact: Yes, the fear of identity theft is real, and hackers are getting better at stealing online credentials. However, the idea that online banking is unsafe is just plain false. For one, reputable online banks and credit unions employ strict security measures and use up-to-date technology to ensure your personal information and bank accounts are safe. In fact, it’s typically no different than accessing your bank account using online tools through a traditional bank or credit union. Plus, most digital banks are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Association (NCUA). That means your deposits (whether in savings accounts or CDs) are insured up to $250,000 so if a bank fails, you should be able to get your money back. (Side note: If you want to make sure the bank is reputable, finding out whether it’s FDIC or NCUA insured is a great place to start.)Myth: Big banks offer better interest ratesFact: The opposite is often true — online banks tend to offer better interest rates. Why? For one thing, online banks don’t have as much overhead, so they can pass on the savings to their customers through accounts known as high-yield savings accounts. They also offer higher interest rates as a way to compete with other financial institutions for customers. While the average interest rate for savings accounts at all types of banks is 0.25% right now, according to Bankrate, it’s possible to find interest rates above 5% at online banks — 20 times higher.Myth: It’s hard to get money from an online bankFact: You should be able to access your funds from an online bank much the same way you would from a traditional bank (except you won’t go to a brick and mortar location). Depending on the type of online bank account you have, you can get your money by using a debit card, by withdrawing cash at an ATM, or through an online or wire transfer. In many cases, online banks will reimburse you for using out-of-network ATMs if they don’t have a robust network of their own.Some financial institutions even offer digital banking features such as Zelle so you can pay your friends and family directly from your bank account within seconds. Plus, if you open an online checking account, you can request paper checks to pay others. Or, you can use the bank’s bill pay function for regular charges like utilities or subscriptions. Even if you opt for a simple online transfer, all you need to do is to log into your account and follow the prompts from your bank. Myth: Opening an online bank account is trickyFact: The No. 1 reason people don’t open a high-yield savings account with an online bank is that they worry it will be too complicated or time-consuming, according to a recent Forbes Advisor survey. But you don't need to be technologically savvy to open or use an online banking account. All you need is a computer, smartphone, or tablet and access to the internet. Most financial institutions make it easy by having you fill out a simple form with your personal information and providing details on how you’ll make your initial deposit. It usually takes a few minutes and if your application is successful, you should be able to get access to your account right away.Myth: Online banks don’t offer good customer serviceFact: Just because a bank doesn’t have physical locations, doesn’t mean you won’t be able to receive excellent customer service. Many online banks allow you to easily speak with a customer service representative who can walk you through questions such as setting up bill pay, regaining access to your account, or getting a new debit card. In addition, online banks generally offer 24/7 customer service via secure messaging and live chat on the website or in some cases even on an app (yes, it’s usually a human on the other side of the screen). Other features make it easy to access your information — you can get your tax forms online, as well as other documents needed to organize your financial life (no need to wait for a delivery in the mail). Bottom lineOnline banking offers a wide range of features to rival traditional banks with brick and mortar locations. It may feel strange to not talk face to face with a human, but the convenient features and potential to earn more in interest at an online bank may make it worth it. Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at lauren.williamson@hearst.com.