Online banking is now pretty much the norm for all banking institutions. In addition to the regular bricks & mortar banks offering online services, there are now banks that are completely online- with no actual location to go to. You can make deposits to online banks with debit or credit cards, transfers from a different checking or savings account, or by mailing a check or money order. Most of the online banks give you debit cards so you can withdraw money from any ATM in the country (if not around the world)One of the main advantages of having an online bank is the ability of these banks to offer higher interest on accounts and lower fees (because they have lower operating costs, and the savings are then transferred to you).Here are some of the most popular online banks and their current advertised rates so you can pick the best option for your needs right now- check out each company`s website because sometimes the rates change- and don`t just assume the higher rates are better. Sometimes other benefits or services will be worth more to you than half a percentage APY!
Type of account
|Zionsbank.com||Money market||5.56% APY|
|EmigrantDirect.com||Cash back credit card||1.40% Cash back!|
|Etrade.com||Checking||4.00% APY/no atm fees|
Right now, I have a checking and savings account at Ingdirect.com for personal use; and a joint checking account at Bank of America with a partner on a business project. I love my ing direct accounts I can electronically write checks and Ing Direct will print & mail them (and at no additional cost to me!), and I can send money to people and it works exactly like a direct deposit into their accounts (you just need their account number and routing number).