Want to know more about the pros and cons of internet banking? FiLIfe Guru Ari Weinberg explains the issues you need to consider when opening a checking account online.
Curious about the pros and cons of internet banking? A FiLife user just asked our banking guru this very question. Here's what he has to say about opening a checking account at an online bank:
FiLife User Question: I'm looking to open a new checking account. What are the pros and cons of internet banking?
Guru Response: There are several different variations on internet banking.
Pure online banks tend to have no ATMs or branches, but provide deposit slips and envelopes and also refund some/all ATM fees charged by other banks. Banking and transactions are done over the phone/web and can be a little difficult when more complex services are needed (cashiers checks, signature guarantees etc.) These often offer good value in terms of interest checking and smaller check fees, but can be a pain if you need a branch. These services are offered by a variety of internet banks (including E*Trade, Schwab, USAA and smaller brands).
Several brick and mortar banks - think Citi, Chase etc. - offer traditional checking accounts and "online only" savings accounts with goosed interest rates and lower minimums. These accounts can be beneficial if you are a good manager of your cash and use your savings for overdraft and almost-near-term money needs.
Want to chime in on the conversation about pros and cons of internet banking? Jump right in here.
| Type | Today | Week Ago |
|---|---|---|
| 15 Year Fixed | 4.62% ![]() |
4.67% |
| 30 Year Fixed | 5.15% | 5.15% |
| 1 Year ARM | 3.48% ![]() |
3.51% |
| 5/1 Year ARM | 3.62% ![]() |
3.68% |
| Type | Today | Week Ago |
|---|---|---|
| Line of Credit | 4.89% ![]() |
4.88% |
| 10 Year Loan | 7.47% | 7.47% |
| 15 Year Loan | 7.61% ![]() |
7.60% |
| Type | Today | Week Ago |
|---|---|---|
| Interest Checking | 0.28% | 0.28% |
| Money Market/Savings | 0.38% | 0.38% |
| 12 Month CD | 1.13% ![]() |
1.15% |
| 60 Month IRA CD | 2.40% ![]() |
2.41% |
| Type | Today | Week Ago |
|---|---|---|
| Cash Back Cards | 12.66% ![]() |
12.68% |
| No Annual Fee Cards | 12.08% ![]() |
11.97% |
| Reward Cards | 12.75% ![]() |
12.61% |
| Small Business Cards | 11.01% ![]() |
10.94% |
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13.49% |
| Platinum Cards | 12.26% ![]() |
12.11% |
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