Online-Only Banks

[resiliens]

I'm looking into opening an account with no (or waived with a low balance, like $100) maintenance fee and free check books. I'm finding that online banks are really the only ones to provide this, although I have some reservations about going online-only. Since I'll have a large amount of money from student loans sitting in an online account, my primary concern relates to customer service from such online banks in the event there are payment/processing issues. For instance, many have recommended Charles Schwab to me, but I've read unfavorable reviews about their customer service as well. I understand that there will always be negative reviews about anything, but since I haven't gone online-only before, I was hoping some of you more seasoned folks could share your thoughts and experiences on the matter. Thanks.

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[thesauce]

I'm looking into opening an account with no (or waived with a low balance, like $100) maintenance fee and free check books. I'm finding that online banks are really the only ones to provide this, although I have some reservations about going online-only. Since I'll have a large amount of money from student loans sitting in an online account, my primary concern relates to customer service from such online banks in the event there are payment/processing issues. For instance, many have recommended Charles Schwab to me, but I've read unfavorable reviews about their customer service as well. I understand that there will always be negative reviews about anything, but since I haven't gone online-only before, I was hoping some of you more seasoned folks could share your thoughts and experiences on the matter. Thanks.

I've had Schwab for years. They're awesome. Never had even the smallest issue with their customer service

 

[mvenus929]

I use USAA, which is essentially an online bank, and have since I was 16. The only complaint that I have is that I cannot deposit cash into my account, which was a bigger deal when my jobs were things like babysitting and not such a big deal when I actually got a check for my job. Every time I've needed to contact customer service, they are pleasant and help me very quickly.

 

[Stroganoff]

I rarely love a financial institution enough to spread the word. Vanguard is up there for investing. I found one lately though. Alliant Credit Union is awesome. They're based out of Chicago but don't really have any brick-and-mortar buildings so they're mostly considered online. I started with a savings account in 2011 just to chase interest rates, but I opened a checking account in 2014 and haven't looked back. Their checking pays 0.65% APY if you have 1 direct deposit a month, which is really high interest for a free checking account. Comes with free checks too. Their savings rates are competitive and are currently 1.00% APY with $100 minimum to earn interest. You can open additional savings accounts in < 1 minute online with no hard inquiry, so I've since moved like 10 savings accounts to Alliant (General fund, Emergency fund, Vehicle fund, Wedding/Honeymoon fund, Vacation fund, etc.). They added $20/month ATM rebates a year or so ago, so you can use any ATM in the world. If you user their website/app, there are many free ATMs (such as from credit unions) that don't charge a fee to begin with, so the $20 rebate only applies if you use an ATM that charges a fee.

I've found their online banking to be fairly smooth, and their mobile app is pretty decent. Includes mobile check deposit. They support Apple Pay, Android Pay, and Samsung Pay. Another huge perk is their online banking allows you to link other savings/checking accounts, and you can push AND pull ACH transactions through them, so many people use Alliant as an ACH "hub" to move money around to all their other accounts at other financial institutions.

There's a long running thread on FatWallet Finance Forums: Alliant CU so you can read others' opinions in addition to just mine. Highly recommended.

Re: customer service, I'm not sure. I've only needed to call them once.

 

[LeverageRx]

You can't go wrong with Schwab. They are extremely easy to use, great perks like free ATM withdraw, remote checking deposit, etc. Customer service has always been quality as well. I've never had an issue.

 

[Yellow mellow]

I'm looking into a savings account with Ally bank. The whole online banking made me nervous at first but the benefits outweigh going to your local bank.

 

[Stim4me]

I'm looking into opening an account with no (or waived with a low balance, like $100) maintenance fee and free check books. I'm finding that online banks are really the only ones to provide this, although I have some reservations about going online-only. Since I'll have a large amount of money from student loans sitting in an online account, my primary concern relates to customer service from such online banks in the event there are payment/processing issues. For instance, many have recommended Charles Schwab to me, but I've read unfavorable reviews about their customer service as well. I understand that there will always be negative reviews about anything, but since I haven't gone online-only before, I was hoping some of you more seasoned folks could share your thoughts and experiences on the matter. Thanks.

Barclays, discover and Amex online banks have the highest yield, 1%. Park money there...

 

[Mman]

My wife and I personally use 2 major banks with local branch offices to direct deposit our paychecks (one to BoA and one to WF). That gives us free checking accounts and local offices with things like safety deposit boxes and what not if we need them. We keep most of our money, however in CapOne360 (formerly ING Direct) online accounts as you get far higher returns in their online savings and MM accounts than brick and mortar banks (I think 1.00% APY right now). Transferring money between the online account and any major bank is free and easy. It gives the benefit of both the local branches and ATMs as well as the higher rates in the online world.

So my paycheck each month (and my wife's) basically comes in to the local bank, gets used to pay various bills, and then gets sent the next day to online account that will earn a higher return.

 

[Stroganoff]

ING Direct-->Capital One's Savings is at 0.75% APY and hasn't been competitive for years. Their checking rates are abysmal:

$0 - $49,999.99 0.20%
$50,000.00 - $99,999.99 0.75%
$100,000.00 or more 0.90%

OP states he is looking for savings/checking solution.

 

[G-Man82]

I use Synchrony Bank online for a place to park my EF. I'll be adding to the account monthly as I save for an eventual downpayment on a place.

Their current rate is 1.05%, which is very competitive for a savings account. I haven't had any problems with them so far.


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[Mman]

ING Direct-->Capital One's Savings is at 0.75% APY and hasn't been competitive for years. Their checking rates are abysmal:

$0 - $49,999.99 0.20%
$50,000.00 - $99,999.99 0.75%
$100,000.00 or more 0.90%

OP states he is looking for savings/checking solution.

CapOne360 MM account has an APY of 1.00% right now and has for sometime. I sincerely hope nobody is worrying about keeping 6 figures in a checking account. No need. Keep the majority of your cash stash in a MM account that earns the best return and simultaneously allows quick and free online transfers to your checking account if you need to use it.

 

[Stim4me]

Interest rates need to go up. Remember the days of 3% returns...

 

[keifernny2]

I joined AMA as a resident and then joined penfed fcu. But none of my banks have ever charged a fee .... Maybe you can find a no fee local bank if you ask in-branch ?


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[Psai]

I use M&T bank, they doesn't charge a fee for my account and no fee for checkbooks. Excellent service too, I like them way better than Bank of America.