Internet Banking is a great way to earn interest and pay bills online.
Should I open up an online free checking account?
Internet banking works great for paying bills, writing checks, and, depending on the bank, an ATM-dependent lifestyle. You’ll pay less for services and often earn interest above what a brick-and-mortar bank offers. If you can manage the paperwork, I suggest you keep two bank accounts: an Internet bank as your primary bank and a local bank in which to store a small balance. If you’re going to use an Internet bank, which one should you choose? Presidential Online Bank came in last because of its lack of 24/7 phone support, buggy Web site, fees for accounts under $500, and charges for ATM use. E*Trade Bank was second to last, losing points for high minimum-balance requirements, fees for accounts less than $1,000; although E*Trade did have ATM’s in Targets across the US among other places. American Express Centurion Bank, came in first. It offers the widest ATM network, no minimum-balance requirements, no fees, and interest on most accounts. Second place goes to US Bank, which offers Free Checking, and a Debit card that pays you up to 1% cash back.
A recent report from Jupiter Research found that around 19 million households viewed and paid bills online during 2003. This is up from 12.2 million in 2002 and the figure is expected to soar to 60.6 million by 2008.
Tips for Safe Internet Banking
- Confirm that an online bank is legitimate: Most bank Web sites have an “About Us” section or something similar that describes the institution. You may find a brief history of the bank, the official name and address of the bank’s headquarters, and information about its insurance coverage from the FDIC
- Make sure your deposits are insured by the FDIC: (our banks US Bank and American Express are both insured by the FDIC and are both reputable banks) To verify a bank’s insurance status, look for the familiar FDIC logo or the words “Member FDIC” or “FDIC Insured” on the Web site.
Why Should I Bank Online?
- You earn more interest from an online bank than a traditional brick and mortar bank! One example with me was I had an account with American Express online and Bank of America and Bank One. American Express Money Market back in early Spring 2002 was around 2.5% compared to Bank of America and Bank One at .05% or somewhere close to that and it did not make me any money so I pulled all my money into my American Express Account to earn more interest. Of course the interest rates keep going down so you have to compare and see what banks pay the most but the Online banks can pay more interest because the brick and mortar banks cannot afford to since you are paying for the customer service of seeing them in person at the drive thru’s, etc. I have no need for Banking in person when I have direct deposit and pay my bills online.
- Free Online Bill Pay – Paying bills online without any hassle, no stamps, and easy to manage your bills! With the prices of stamps increasing significantly each year you have to wonder why everyone does not use this service.
- Free Online Banking – Looking up your account and transferring funds!
- Some Online Banking accounts pay you cash back for using their debit cards up to 2%. This can help earn airline miles or even Thank You points with banks like Citibank.
- Many Online Banking accounts credit your account for any ATM Fees!
- Great Customer Service 24-hrs a day! (American Express Centurion Bank)
- ACH Transfer (Electronic transfer of funds are free with American Express Centurion Bank, although Netbank and E*Trade does charge extra for outgoing money- you have to Love American Express for their Customer Service compared to ETRADE or NETBANK who LACK in that department!! Etrade and Netbank will someday realize that people want to transfer funds electronically out of the bank and in the bank and not be charged for it!) A new service from ING DIRECT lets you transfer between funds and earn interest without having to deal with all the problems you normally have to deal with.
- Free Checks- but why do you need checks?? You can bank online for free! (most online banks give the first set of checks for free)
- No need to wait for a paper statement – view your funds online!
- Earn More Interest with online banks such as ING DIRECT or EmigrantDirect.com
Banking Resources
More on Internet Banking | EverBank® Online | Compare Online Banks | Virtual Bank | Designer Checks |Online Banking
Let the Bank Lady help you find the best online banking experience! We can help you find the best Money Market, High Yield Savings, T-Bill Money Rate, Free Checking, and Free Bill Pay online program available. Find out more about bank fees and what free checking really means! Write us and tell us your comments or if you have a banking and savings review you would like to send in yourself to the Bank Lady where you can find your Bank Online. List of Bank regulatory Agencies | Bounced Check Fees |
