Picking an online bank..

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tranceFusion
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Joined: Thu Nov 15, 2012 10:49 pm

Picking an online bank..

Post by tranceFusion »

Here's my current setup..

1. Local B&M bank w/ high fees and low interest for Checking and small portion of my Savings to use as a buffer.
2. ING Direct Savings Account for the rest

I'd like to switch to another online savings account for sure - the Capital One acquisition and decreasing interest rates at ING are a big turn off to me.

I also wouldn't mind dabbling with an Online Checking account to see if it works for me.. something with a higher interest rate, no/low atm fees, etc. This doesn't necessarily have to be the same bank as the Savings but it would be nice to consolidate.

The problem is that I can't pick a bank! I have been reading reviews at depositaccounts and bankrate and pretty much every bank has like 2/5 stars for the average user review. Admittedly, most people probably don't get so excited about their bank that they will post positive reviews, but reading page after page of complaints about accounting errors, terrible customer service, etc. makes me hesitant.

The banks I have been looking at so far are Ally Bank, CIT Bank, Barclays, Everbank, Amex, FNBO, Schwab (bad rates), USAA (bad rates).

I guess I am just looking for any positive experiences with any of these banks, suggestions for a different bank to look at, or to be pointed at some other resource for helping make a decision. Thanks!
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Polar_Ice
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Re: Picking an online bank..

Post by Polar_Ice »

I agree with you about the changes to Capital One. I really like USAA for checking but their rates are low. A friend recommended Alliant to me and they have great rates and a lot of really good features for a checking. Also their rates are very competitive and they offer online deposits.

http://www.alliantcreditunion.org/depos ... ing/basic/
eclipsis
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Location: Ohio

Re: Picking an online bank..

Post by eclipsis »

I had nothing but positive experience with the State Farm checking account. Never knew they had one until I started looking for a bank with certain features (mobile deposit with camera, not only free ATM but they will pay you back for other banks fees, etc.) I have direct deposit here so I'm not positive what the fees are otherwise. I think without direct deposit, they will only reimburse you $10 per month for other banks ATMs. With direct deposit, every ATM is free for you to use.

Rates aren't great but better than most checking accounts (.34% with $2500+ balance). Can do slightly better with online savings accounts.
KyleAAA
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Re: Picking an online bank..

Post by KyleAAA »

What changes have you guys noticed since the Capital One transition? I haven't noticed anything other than the new branding stuff.
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biquet
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Re: Picking an online bank..

Post by biquet »

I've used Schwab for several years now and watched their rates go from 'phenomenal' to 'meh, still better than brick & mortar'. I've stuck with them because I love being automatically reimbursed for ATM fees incurred at any ATM in the friggin' world. That and no minimum balance on checking or savings. I don't keep all that much money in these accounts, so the ATM fee reimbursement saves me more money than I would earn by having a higher-interest account elsewhere.

I've had little occasion to interact with anyone at Schwab over the phone, but the one time I talked to a human about a wire transfer, she was helpful and knowledgeable.
chipmonk
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Re: Picking an online bank..

Post by chipmonk »

Polar_Ice wrote:I agree with you about the changes to Capital One. I really like USAA for checking but their rates are low. A friend recommended Alliant to me and they have great rates and a lot of really good features for a checking. Also their rates are very competitive and they offer online deposits.

http://www.alliantcreditunion.org/depos ... ing/basic/
+1. Alliant's great.

Nice web site, decent rates (.75% checking/.8% savings currently), helpful and competent customer service, fast ACH transfers, free bill payment, free checks, mobile deposit, free ATMs at practically any credit union in the country, and very good HSA rates (1.25% currently) which now include investment options.
scone
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Re: Picking an online bank..

Post by scone »

Many people here seem to like PenFed, which IIRC is a credit union. I love my credit union, which is small but has good on-line access. I would look at an international bank if you do a lot of traveling.
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fcox85
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Re: Picking an online bank..

Post by fcox85 »

I was with Ally for a while, and loved their service/features.

Monthly reimbursement of ATM fees, good interest rates, helpful customer service, simple Bill Pay interface, Ally Rewards Perks--automatically deposited rebates for shopping at certain rotating vendors using your debit card. If most of your banking is direct deposit, you will likely love Ally. The only problem is that other deposits are sometimes a pain, having to scan and upload pictures of your checks. That, and you cannot deposit cash.

I only left because I got married, and wanted to streamline/join our finances. Now I'm with Wells Fargo, and I really miss Ally when I am occasionally hit with BOTH ATM fees, and an EXTRA fee from WF for using another institution's ATM when I absolutely must. Also, the interest rates at WF are terrible, and you can only avoid fees on basic checking/savings accounts by meeting certain criteria, such as minimum balance, or minimum number of direct deposits each month, etc. But, I do have the convenience of brick and mortar branches, which is nice.

I would go back, but my wife likes WF, and it's not a big enough issue to waste breath/effort.
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bUU
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Re: Picking an online bank..

Post by bUU »

I'm sticking with ING for now, because I haven't seen any substantive changes yet from the Capital One acquisition, and it isn't worth switching for another 0.05% from Ally Bank. If Capital One screws things up, then it'll be easy to make the switch.
jteigen
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Re: Picking an online bank..

Post by jteigen »

Redneck Bank is offering a 1.10% APY Money Market. Solid rate, and boundless opportunities for dinner party conversations.

http://redneckbank.com/mega-money/
DTSC
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Re: Picking an online bank..

Post by DTSC »

+1 with Alliant.
Randomize
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Re: Picking an online bank..

Post by Randomize »

How do online banks deal with cash deposits?
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interplanetjanet
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Re: Picking an online bank..

Post by interplanetjanet »

brianbooth wrote:How do online banks deal with cash deposits?
If you're using a credit union that participates in the CU Service Network, you can make deposits at another member institution in your area.

You can get a money order with the cash and then deposit the money order. Some "online" banks and credit unions have physical presences that can be used for this - USAA allows you to deposit checks and money orders in-person at most Mailboxes ETC locations, for example.

If I was in the habit of regularly receiving more cash than I could conveniently spend, I would keep a local bank account as well and use them for deposits - then transfer the money to my main account using ACH. I have such a "just in case" account at a small local bank, though haven't needed it for anything other than a medallion guarantee over the years.
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tfb
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Re: Picking an online bank..

Post by tfb »

brianbooth wrote:How do online banks deal with cash deposits?
If you have the right bank, you deposit the cash into an ATM.
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chipmonk
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Re: Picking an online bank..

Post by chipmonk »

tfb wrote:
brianbooth wrote:How do online banks deal with cash deposits?
If you have the right bank, you deposit the cash into an ATM.
Yep, that's what I do with my Alliant account. We have a deposit-taking ATM for another credit union in my building at work, which is smart enough to count cash. :)
normaldude
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Re: Picking an online bank..

Post by normaldude »

Primary Checking: Schwab High Yield Checking (0.15%). No monthly minimums or fees. I can use any ATM in the world for free, and Schwab will reimburse me for any fees the other bank charges me. I keep about $5,000 in here for monthly bills.

Primary Savings: ING Direct (0.75%). No monthly minimums or fees. I keep about $10,000 here.

B&M Checking: TD Bank Checking (0.00%). $100 minimum balance to avoid fees. I only keep about $200 in here, just to keep it open without fees. I only use this account for cash/ATM deposits (which then get EFT transferred to ING Direct), cashiers check, notary signature, free coin counting machines, etc. I like TD Bank because they have several branches near me that are open 7 days/week, including nights & weekends.

The above 3 firms have worked flawlessly for me, and I can recommend them in their respective categories.

If I were to open a new online savings account, I'd consider Barclays Online Savings (1.00%) or American Express High Yield Savings (0.90%). They are big name firms with decent interest rates.
Last edited by normaldude on Tue Jan 15, 2013 8:14 pm, edited 1 time in total.
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Toons
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Re: Picking an online bank..

Post by Toons »

I am pleased with Capital One Electric Orange,been using it since its inception. I'm sure there are better rates
around but my rate chasing days are long over :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
chipmonk
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Re: Picking an online bank..

Post by chipmonk »

normaldude wrote:Primary Checking: Schwab High Yield Checking (0.15%). No monthly minimums or fees. I can use any ATM in the world for free, and Schwab will reimburse me for any fees the other bank charges me. I keep about $5,000 in here for monthly bills.

Primary Savings: ING Direct (0.75%). No monthly minimums or fees. I keep about $10,000 here.

B&M Checking: TD Bank Checking (0.00%). $100 minimum balance to avoid fees. I only keep about $200 in here, just to keep it open without fees. I only use this account for cash/ATM deposits (which then get EFT transferred to ING Direct), cashiers check, notary signature, etc.

The above 3 firms have worked flawlessly for me, and I can recommend them in their respective categories.

If I were to open a new online savings account, I'd consider Barclays Online Savings (1.00%) or American Express High Yield Savings (0.90%). They are big name firms with decent interest rates.
I do something pretty similar: Alliant Checking+Savings for pretty much everything (.75-.8% paying currently), Capital One "high yield" checking (.2%, I think) for free ATM access anywhere, and Chase Checking to get the additional 10c/purchase cashback bonus on my Chase Freedom credit card.
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Village Idiot
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Re: Picking an online bank..

Post by Village Idiot »

normaldude wrote:Primary Checking: Schwab High Yield Checking (0.15%). No monthly minimums or fees. I can use any ATM in the world for free, and Schwab will reimburse me for any fees the other bank charges me. I keep about $5,000 in here for monthly bills.

Primary Savings: ING Direct (0.75%). No monthly minimums or fees. I keep about $10,000 here.

B&M Checking: TD Bank Checking (0.00%). $100 minimum balance to avoid fees. I only keep about $200 in here, just to keep it open without fees. I only use this account for cash/ATM deposits (which then get EFT transferred to ING Direct), cashiers check, notary signature, free coin counting machines, etc. I like TD Bank because they have several branches near me that are open 7 days/week, including nights & weekends.

The above 3 firms have worked flawlessly for me, and I can recommend them in their respective categories.

If I were to open a new online savings account, I'd consider Barclays Online Savings (1.00%) or American Express High Yield Savings (0.90%). They are big name firms with decent interest rates.
Same here.
BoA B&M Checking for Cash Deposits
ING Direct Checking and Savings
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spartanlaw
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Re: Picking an online bank..

Post by spartanlaw »

I had USAA for about eight years and just recently switched to Ally. Couldn't be happier with my switch.
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Bustoff
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Re: Picking an online bank..

Post by Bustoff »

Just pulled out of ING simply because their rates. I'm moving the money back to Vanguard where I'm thinking of splitting it between TIPS and VGLT.
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englishgirl
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Re: Picking an online bank..

Post by englishgirl »

I see no need to switch from ING/Capital One. Yes, the rates have been sliding, but in general rates have slid, and ING were always good rates. Not the highest ever, but consistently good. They still are, in my opinion, and still way higher than a bricks-and-mortar bank will give you. OK, I could rate chase and get something higher, but the inertia is higher than my need to stretch to get a slightly higher rate. If the other banks were offering 5% while ING was at 0.75%, it'd be a no-brainer. But we're not at that point. Yet.

Besides, I also have my mortgage with them, and at least they're honest enough that rate slides happen on the other side of the equation too. I'm currently at 2.75% for my 5/1 ARM. I'm not about to switch that.

I'm sure we'll all be keeping a watchful eye on how Capital One handles things, but so far they haven't done anything to annoy me.
Last edited by englishgirl on Wed Jan 16, 2013 9:15 am, edited 1 time in total.
Sarah
fcox85
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Re: Picking an online bank..

Post by fcox85 »

brianbooth wrote:How do online banks deal with cash deposits?
Ally, for example, does not accept cash deposits. That was the only real complaint I had when using Ally. However, I really don't carry or receive a lot of cash, so it wasn't a significant issue for me.
retired recently
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Re: Picking an online bank..

Post by retired recently »

I have used Everbank for many years, probably around 10, and have always been very satisfied.
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SSSS
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Re: Picking an online bank..

Post by SSSS »

After some research and comparison, I opened an account with Ally recently.
Bacchus01
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Re: Picking an online bank..

Post by Bacchus01 »

Ally Bank for me. But we do keep a local bank (BMOHarris) for fast access to larger amounts of cash.

I would like to move from BMOHarris as I don't want my money in a Canadian bank and they've cut many of their services since BMO bought M&I.

I love Ally. ATM reimbursements. Great customer service. Better if not best rates. But the biggest thing for me is their Bill Pay. Ally takes money out of your account not when the check is written, but when the check actually clears. That is always better. Bank of America does this as well, but there are no BoA branches locally so we dropped them when we moved. Not to mention that BoA service, which was once stellar, now SUCKS.

I would go all Wells Fargo but a) they are not as generous at ATM reimbursements and 2) their Bill Pay takes out money when they cut the check, not when it's cleared.
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bUU
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Re: Picking an online bank..

Post by bUU »

englishgirl wrote:I see no need to switch from ING/Capital One. Yes, the rates have been sliding,
This is the third time I've read this, and just checked. I'm still getting the same rate I've been getting all along.

What am I doing right?
srh12
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Re: Picking an online bank..

Post by srh12 »

Ally for me. Good rates and CS.

And to clarify, they now have check deposit by taking photo of front and back of check w/smart phone. No more scanning--its great.

Also full access to bill pay from their app. Very happy.
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englishgirl
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Re: Picking an online bank..

Post by englishgirl »

bUU wrote:
englishgirl wrote:I see no need to switch from ING/Capital One. Yes, the rates have been sliding,
This is the third time I've read this, and just checked. I'm still getting the same rate I've been getting all along.

What am I doing right?
The rates have been sliding verrrrryyyy slowly. Looking at one of my savings accounts I see (obviously this is listed in reverse chronological order):

10/10/12 - rate changed to 0.75%
1/6/12 - rate changed to 0.8%
12/3/11 - rate changed to 0.85%
10/21/11 - rate changed to 0.9%
2/23/11 - rate changed to 1%
3/2/10 - rate changed to 1.1%
2/18/10 - rate changed to 1.15%
2/4/10 - rate changed to 1.2%
1/8/10 - rate changed to 1.25%

Capital One bought ING Direct in June 2011. I don't see any change in the pattern of interest rate changes since then. I don't know how this compares to when Ally's rates have changed - perhaps someone can post them for comparison?
Sarah
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bUU
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Re: Picking an online bank..

Post by bUU »

Okay I only go back to 11/1/2011 and only have an Orange Checking account. As far as I can tell, it's always been what it is now, for very high balances.
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Polar_Ice
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Re: Picking an online bank..

Post by Polar_Ice »

The change to capital one savings rate is that they cut ties with Costco which I opened my account under a few years ago. So now the added benefit that was there with the Costco deal is gone. Seems like there are some banks that offer teaser rates to get money and there are some that just consistently maintain a competitive rate. I would like to find the latter. :happy
baddriver
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Re: Picking an online bank..

Post by baddriver »

I recently opened an Ally money market account and I love it.

- Android phone app allows me to deposit checks by taking a picture and tapping some buttons.
- Reimbursement for all US based ATMs.
- Currently 0.95% APY
- Free checks
- Bill pay
- Ability to initiate push / pull electronic funds transfers to my brick and mortar local checking account. 2 day holding time for transfers (as opposed to Barclay's which holds for 5 days).

A good discussion on this topic at FW, along with updated list of rates: http://www.fatwallet.com/forums/finance/783099/
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