List of Internet Only Banks
- Banking online can have significant financial benefits.piggy bank image by pershing from Fotolia.com
As more people manage their bank transactions online the thought of joining an institution run completely on the Internet becomes more appealing. After all, online banks have many advantages-the main one is that because an Internet bank does not have to pay for a physical location, it can afford to provide a better interest rate. In addition, you can see all your financial information at the touch of a button and you are not swamped with mail, instead receiving your statements through the web. Here are some of the best Internet banks.
FNBO Bank – Savings Account
- FNBO Bank (First National Bank of Omaha) offers an Internet-only savings account. According to Consumer Research, its interest rate is three times the average U.S. rate. You can make up to six monthly transfers or withdrawals from the account and there is no minimum balance. FNBO has a network of more than 400,000 ATMs across the country, but the bank does charge a fee for using a machine so it is better to withdraw money via a transfer to another bank.
Smarty Pig – Savings Account
- Do you have something you want to save for? Then Smarty Pig online bank might be the answer. This account also offers interest of reportedly three times the national average savings rate. To use it you must agree to a set amount to be deposited each month via direct debit and tell the bank your savings goal ($250 is the minimum goal). Smarty Pig will then keep you motivated by encouraging you to share your goal with chosen friends and, if you wish, allow them to monitor your progress as part of a social networking initiative. If you unexpectedly need the money, however, beware-withdrawing cash can take up to a week. You should therefore use this account only as part of a long-term savings plan.
ING – Checking Account
- If you want to manage your everyday transactions through an online bank, ING’s Electric Orange account offers an extremely competitive interest rate (for the latest rate check out their site in our resources below). This means that even your instant cash will earn interest. The Electric Orange account comes with a free MasterCard Debit card and you can withdraw money from more than 35,000 free ATMs. You can pay bills online, transfer to other accounts and even send checks mailed on your behalf, from the bank, to your payee.