New Bank Account: Online bank vs. Local 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!

[Cassi Justiz]

I chose to go with a local bank for a few reasons. The biggest reason is because I like that I can establish a relationship with my bankers. Some people don't care about that, but I love being able to walk into the bank and get them to do whatever I need without questioning. (A perfect example was not too long ago. A tenant made out a cashier's check to the wrong name. The new teller wouldn't deposit the check, but they called their supervisor over to see if he could help. He immediately recognized me and my company name and was able to make the deposit for me.)

Also, another key factor in choosing a local bank was for cashier's checks. We require first month's rent and security deposits be paid with either cashier's checks or money orders. Many banks will not allow you to deposit money orders or cashier's checks without going to a branch. I also need cashier's checks from time to time to close on properties. I technically can wire funds to a title company, but cashier's checks are more affordable.