Online Banking

[cubinican1]

Was thinking about opening an online bank account. I know that there are a lot of pros, cons when it comes to online banks. Any input on what bank you guys use. Do you like it more than actual branches.

 

[jumpman247]

Why?

 

[bhergh]

Wats ur real account

 

[utvol23]

Was thinking of opening an ally money market account for the better interest rate but it still sucks at less than 1 percent

 

[runyc]

I have both an online banking account with Ally (checking) and a Capital One brick and mortar account (checking and savings). There are not many downsides to having an online bank account and I expect in 15-20 years many of the larger brick and mortar banks will either adopt an online strategy or have a "branch lite" strategy of having limited branches with the majority of their presence online. 

Online bank accounts typically offer higher APY's vs. brick and mortar branches - your Ally's, CIT's, Schwab, Barclays, ING Direct (Capital One 360) can offer higher rates since they don't have the overhead costs associated with running a branch (i.e. branch associates, rent, etc.). Also, many don't charge ATM fees or refund ATM fees since they don't have physical locations.

I keep a brick and mortar account because there are still certain checks that I need to cash in physically so I prefer to have a branch location. I also keep a savings account (outside of trading / brokerage and third-party managed accounts) to cope with my own personal paranoia that I won't be able to access my online account one day and will have to resort to going to a branch 

 

There's also upside for having a branch location if you are looking to being a borrower, having a prior history as a depositor with your branch goes a long way if you are looking to take out a loan. 

 

[utvol23]

I have both an online banking account with Ally (checking) and a Capital One brick and mortar account (checking and savings). There are not many downsides to having an online bank account and I expect in 15-20 years many of the larger brick and mortar banks will either adopt an online strategy or have a "branch lite" strategy of having limited branches with the majority of their presence online. 

Online bank accounts typically offer higher APY's vs. brick and mortar branches - your Ally's, CIT's, Schwab, Barclays, ING Direct (Capital One 360) can offer higher rates since they don't have the overhead costs associated with running a branch (i.e. branch associates, rent, etc.). Also, many don't charge ATM fees or refund ATM fees since they don't have physical locations.

I keep a brick and mortar account because there is still certain checks that I need to cash in physically so I prefer to have a branch location. I also keep a savings account (outside of trading / brokerage and third-party managed accounts) to cope with my own personal paranoia that I won't be able to access my online account one day and will have to resort to going to a branch   

There's also upside for having a branch location if you are looking to being a borrower, having a prior history as a depositor with your branch goes a long way if you are looking to take out a loan. 

yea we have a Well fargo PMA checking and savings account but were going to open an ally account to keep our money for quarterly taxes in and earn a little interest.

 

[stork]

What is the interest rate on the online account you are going to open?

Annual USD Inflation is 1.5%.... :x

Isn't Fontaine a finance guy? he might know....

 

[utvol23]

Its horrible at .85% but a lot better than brick and mortar

 

[runyc]

What is the interest rate on the online account you are going to open?

Annual USD Inflation is 1.5%....

Isn't Fontaine a finance guy? he might know....

 This is exactly why I invested in gold / precious metals in 2011-2013 

But to play devil's advocate, there's two sides to the coin, it was / is a great time to be a borrower with "negative real inflation"  

 

[asianplayer]

Capital One 360. I like it more cause the interest rate is higher (tho not great). I do have an account with a local credit union just in case I need to visit a physical location to deposit, but I usually just end up transferring money from the credit union to the Capital One 360 account.