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.
Online banking can give consumers more time in a day. Consumers can reduce the time spent balancing a checkbook, transferring money and paying bills. Many online banks that have no physical presence offer high-yield accounts.
Less overhead running a physical branch can mean online customers get higher interest rates on savings and checking accounts, checking, certificate of deposits, money market accounts and other bank products.
I recommend the following online banks because they have been pioneers in the online banking industry offering full access to financial products along with good customer service:
USAA is open to the public although it was originally for military personnel. Now the public has access to the great financial products and stellar customer service enjoyed by military personnel for years. The only issue with USAA is the initial deposit for a checking or savings account must come from an existing bank account or a Mastercard.
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 and discounts are available to the public.
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 and they’s even mail your paper checks for you with postage fees to you. Customers do have he option to order a checkbook too.
PerkStreet was built to make sure customers never need traditional bank branches. For instance: Bills can be paid online in minutes with free online bill pay; automate free transfers between PerkStreet and other banks; see transactions and track your balance in near-real time; set mobile alerts for low balances and other events; and customers can check your perks and redeem in seconds.
But the real benefit in Perkstreet is the exceptional approach to debit cards. The PerkStreet FinancialSM Platinum Debit MasterCard earns you unlimited 1% cash back almost anywhere you use your card. Earn 2% cash back at several popular retailers including Walmart and Amazon.com®; and, get up to 25% cash back on special offers from leading brands picked for you weekly.
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 1.25% for the first six months, a first year APY currently at 0.93% 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.
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.