When people talk about brick-and-mortar banks, they’re referring to banks and credit unions that have physical branch locations you can walk into. Think of your local bank on the corner where you can talk to a teller, deposit cash, or sit down with a loan officer. The phrase comes from the traditional materials bricks and mortar used to build those branches.
Today, most brick-and-mortar banks also offer online and mobile banking. But the key difference is this: the physical branch still exists, and visiting it is always an option.
Brick-and-Mortar vs. Online-Only Banks
To understand brick-and-mortar banks, it helps to compare them with online-only banks (also called internet banks).
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Brick-and-mortar banks: You can bank in person at a branch and use online tools if you want.
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Online-only banks: Everything is done digitally—there are no branches for customers to visit.
With an online-only bank, you won’t meet a teller face-to-face or sit across the desk from a loan officer. Customer support is handled through phone calls, secure messages, or live chat. While employees still work somewhere, those offices are not open to the public.
Why the Term “Brick and Mortar” Exists
Before the internet became part of everyday life, all banks had physical locations. There was no need to label them every bank was a walk-in bank.
That changed when businesses started operating entirely online. To tell the difference between companies with store fronts and those without, the term “brick and mortar” became common. In banking, it now often means “traditional” when compared to digital-only alternatives.
The Benefits of Brick-and-Mortar Banks
For many people, having a physical branch nearby is still a big plus.
Here’s why:
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In-person help: You can talk directly with a bank employee if you have questions or need advice.
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Cash deposits: If you regularly deal with cash, depositing it at a branch is safer and easier than mailing it or using an ATM.
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Immediate services: Need a cashier’s check today? A branch can give it to you on the spot.
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Extra services: Many branches offer notary services, money orders, and safe deposit boxes.
For example, if you’re buying a home and need certified funds quickly, walking into a branch can save time and stress.
The Downsides of Physical Branches
Branches aren’t free to operate and those costs often affect customers.
Brick-and-mortar banks must pay for:
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Buildings or leased retail space
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Utilities and maintenance
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More staff at each location
Because of these expenses, traditional banks may offer:
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Lower interest rates on savings accounts and CDs
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Higher interest rates on loans
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More account fees compared to online banks
In short, convenience comes at a price.
Why Online-Only Banks Can Offer Better Deals
Online banks don’t have to maintain branches across the country. That lower overhead often allows them to offer:
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Higher savings interest rates
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Free or low-fee checking accounts
Thanks to mobile apps, many everyday tasks are easy:
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Deposit checks by taking a photo
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Pay bills online
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Transfer money in minutes
If you have a question, customer support is usually just a call or chat away.
What Physical Branches Still Do Best
Even with powerful apps and online tools, branches still shine in certain situations.
Physical banks can:
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Issue cashier’s checks and money orders immediately
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Notarize documents
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Provide safe deposit boxes
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Handle complex issues face-to-face
Waiting for documents to arrive by mail isn’t always ideal especially during important life events like buying a car, moving, or settling an estate.
Do You Still Need a Brick-and-Mortar Bank?
For many people, the answer is yes but maybe not for everything.
A common approach is to:
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Use an online bank for daily banking and savings
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Keep a local brick-and-mortar account for cash deposits and special services
Even online banks often link to a traditional bank account behind the scenes. Having a local branch available can be a smart backup when you need in-person help.
The real question isn’t whether you need a brick-and-mortar bank it’s how often you’ll actually use it.
Getting Started With Online Banking
If online banking sounds appealing, there are excellent options available nationwide. Many consumers choose online banks for:
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High-yield savings accounts
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Fee-free checking
That said, don’t overlook local banks and credit unions. Supporting a community-based institution can be rewarding, and they may offer competitive products especially if you value personal service.
Bottom Line
Brick-and-mortar banks aren’t going away anytime soon. While online banks often win on rates and fees, physical branches still play an important role especially when money gets complicated.
The best setup for many people is a mix of both: digital convenience paired with in-person access when it really matters.
Please take a look at this as well:
ATM Deposits: What You Need to Know Before Putting Money in the Machine
