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Online Banks


Drewhop

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I see the ads all the time but are they really that good. I see like wamu and a few others. What benefits and what disadvantages do these have. I can see the inconvenience of not having a local branch or someone you deal with. What are the perks of some of these.

 

Any input would be appreciated

 

thanks Andy

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They give great interest rates on savings, checking and money market accounts. This is of course because they have no branch offices to pay rent and heating bills for.

 

I've been thinking of switching my $$ over to wamu. I still can't find any downsides since they waive ATM fees. I'll be watching for the rest of the responses

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i'm interested in hearing more opinions as well. I'm looking at setting up an online savings account with HSBC Direct since they give the highest return currently. It'll be a savings account so I'm not really concerned about getting money quickly or at a branch.
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guy on another forum i go to loves ING. as stated, you cant just walk in somewhere and get your money, so if you dont mind waiting a few days if you need it, it works out well

 

plus, he just won 1,000$ a few weeks ago from a sweepstakes that he got automatically entered into for depositing money every month. he didnt even have to do anything

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I've always heard the lack of overhead from having and maintaining physical branch sites is one of the biggest positive's and negatives. Washington Mutual is a 'regular' bank also, but I dont think they have any branches in the midwest and they invest heavily into online banking.

 

Online banks will almost always have a higher interest rate on their saving's and investment's as oppose to regular banks. Hell I checked Telhio for their saving's interest rates and it was pathetic. Im looking into it aswell, let me know what you find out.

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My capital one money market account has 4.8% APR now. I have a debit card to withdraw the money from. 2nd option is to do an EFT on their website to move money to another account or vise versa. It just takes a couple business days to move the money by EFT.
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I have had an ING savings account for a few years now, and love it. As far as checking and whatnot... I still want to see someone face to face, so I have a 5/3 checking. But you can't beat 3.5%-4.5% interest on a savings account.

 

I was just about to say I dont think I would feel very comfortable doing daily banking with an online bank but if its something simple as saving's, and as long as their FDIC insured I would be interested.

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