Proxy Vs VPN - Reicht ein Browser-Proxy für grundlegende Privatsphäre aus?

I've recently been using some free browser proxies to bypass simple IP blocks, but I'm wondering if this makes me vulnerable. From what I've read, proxies only forward browser traffic and don't encrypt anything, while a VPN is supposed to protect the entire device. Is switching to a full-fledged VPN really necessary for someone who does a lot of online banking and uses public Wi-Fi in cafes?

I'm looking for alternatives and keep coming across FastestVPN's offer ( https://fastestvpn.com/vpn-deals ) with a lifetime license for $20 (using code CM20). It seems like an absolute steal, offering full system encryption for a one-time fee, especially compared to a monthly subscription for a proxy service or a premium VPN like NordVPN ( https://nordvpn.com/pricing ). Has anyone switched from a proxy to a cheap VPN like this? I'd be interested to know if you noticed a significant difference in security or if your browsing speed slowed down considerably.