Online bank vs brick and mortar ???

[Micah Hensley]

Good Afternoon BP Community!!

So we are about to close on our first rental property!!! YAY!!!

In doing so we are trying to get all our ducks in a row and be ready for this. We know we need a seperate account for the "business" that is not our personal account, not a problem. (as well as an escrow account for deposits...). I remember hearing on a podcast this summer (was listening in on a friends on a car trip so I don't know which one to go back and find it...) about someone who used Online banks. One reason was the % on interest was higher.

So what are everyone's thoughts on using an online bank vs. a local or national bank with a brick and mortar location?

Thanks in advance!

[Nicole Heasley Beitenman]

My mortgage company misapplied 2 payments in April and May last year. I JUST got them to finally fix it this month. My credit took a 50 point hit because they were reporting payments late. It was a much bigger mess than it should have been, which was partially my fault. Regardless, I am now purposefully working with a small local bank that will service any mortgage I get through them in-house for an extra .25%. I don't care about a lower interest rate or the extra $25 a month the tenant pays on my mortgage; the ability to walk into a bank and talk to a human being when you're having an issue is more than worth it.