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 the convenience to deposit checks from anywhere. Make check deposits from your computer or mobile device. Set up direct deposit with all (or just some) of your pay into your 360 Checking or mail in a paper check deposit. But the best feature of the Capital One 360 Checking account is No monthly fees and no minimums along with a free MasterCard® Debit Card for all purchases; free online bill pay; and free access at over 38,000 Allpoint® ATMs and 2,000 Capital One® ATMs.
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.
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.