More and more U.S. households prefer online banking. A 2012 survey conducted by the American Bankers Association (ABA) showed 62% of consumers named online banking as their preferred method of banking. Indeed, even bank customers 55 and older now prefer online banking over branches.
Now that consumers prefer online banking; Internet-only banks are also growing in popularity. Internet-only banks offer customers more savings by charging fewer fees than their brick-and-mortar competition. The lack of overhead costs for things like branches and tellers means that online banks can offer higher interest rates on savings, money market accounts and certificate of deposits.
I recommend the following online banks because they are innovators when it comes to online banks — offering full access to financial products along with great customer service:
Capital One 360 offers customers a chance to earn a $50 bonus by opening the 360 Checking Account and making a total of 3 Card purchases or Person2Person Payments (or any combo of the two) within 45 days of account opening. Your $50 bonus will automatically be deposited into your account on day 50.
Capital One 360 Checking allows you to deposit checks from anywhere with CheckMateSM. But the best feature of the Capital One 360 Checking account is No Monthly Fees and No Minimums along with Free MasterCard® Debit Card for all purchases; Free Online Bill Pay; Free access at over 38,000 Allpoint® ATMs. You can even instruct 360 Checking to (i) pay bills; and (ii) mail or overnight a check on your behalf to any person or business in the U.S. if you do not want to use a personal check.
Scottrade Bank is an FDIC-insured online bank offering banking products to Scottrade, Inc. brokerage clients. The online banking products includes checking and savings accounts, and CDs. Scottrade customers can access their bank account online through their brokerage account.
Enjoy the convenience of online banking with no maintenance, withdrawal, transfer or ATM fees, including most cash withdrawal fees charged by other banks’ ATMs. Scottrade will reimburse you for ATM fees charged by other banks. Earn interest on the funds in your checking account, open a savings account or enjoy the benefits of an interest-bearing Money Market account combining the best features of both.
EverBank’s Yield Pledge Checking Account, promises you’ll get consistently high yields on your FDIC-insured checking account, so you can rest easy knowing your money is safe and working hard.
First time account holders, for balances between $25,000 and $49,999, get a new account bonus rate of 1.10% for the first six months, a first year APY currently at 0.78% and an ongoing APY of 0.61% APY. While the minimum opening balance is $1,500, there is no minimum required to earn interest once you open the account.
Everbank also offers online and mobile banking, mobile check deposits and overdraft protection along with a variety of products including a money market account and world currency CDs, all with top-tier interest rates.
USAA was formerly open to the public but now only serves military personnel, veterans and their families. If you, your spouse or parent has a relationship to the military you can get access to the great financial products and stellar customer service enjoyed by military personnel for years.
Get free checking that’s honestly free. USAA has successfully included the same financial products available in their financial centers accessible to online customers. USAA’s mutual funds, most checking and savings products, credit cards, life insurance, and shopping discounts are just a few of their online financial products.
Benefits of Online Banking
Consumers with online bank accounts can enjoy 24 hour access, unlike traditional banks. Most online banks also offer phone service for regular banking hours; some actually offer phone services 24 hours a day as well. Online banking also gives access to customers anywhere in the world an internet connection exists.
Banks with online services have gone to great length to increase the security of transactions in recent years, adding new layers of encryption. Online banking is safe, convenient and quickly becoming the most popular way of banking among consumers.