Find The Right Online Bank For You
27 December 2009You haven’t seen a paper check in years, thanks to direct deposit, and your investment strategy begins and ends with a nofrills 401(k). You want to minimize hassle, maximize interest, and take advantage of your constant Web connectivity.
Everbank.com This practically fee free, Web only bank earns you 6 percent interest on FreeNet checking even more for savings and money market accounts (plus, your first 50 checks are free). “Great rates are the big setting point for all online banks,” says Mike Sante, managing editor of Interest.com. Log in during your Lunch break or between meetings to take care of business in a flash.everbank.com
THE FREELANCER
Whether you’re waiting tables, installing windows, or editing a Web site, you’re paid sometimes unpredictably in cash or checks You want a robust Web service for paying bills, but you need a nearby branch, with tellers, to make deposits and provide easy access to your cash sans fees.
Citibank online This brick and mortar stalwart has nearly 1,080 ATM terminals worldwide and was also ranked number one in online quality and availability by Web research firm Keynote Systems. Pair the no fee, no minimum EZ Checking account with the Ultimate Money savings account for a 5 percent rate provided you pay two bills online per month. citi.com
THE ARMCHAIR INVESTOR
You TiVo Jim Cramer, pore over marketwatch.com, and funnel cash into the market when you can. You want to swing funds from checking to investment accounts as quickly and seamlessly as possible.
E*Trade Bank Keep a checking balance above $5,000 and you’ll earn 3.25 percent on your quick access funds. But the real kicker here is the ability to flip funds, fee free, between E*Trade accounts and any other bank account, brokerage, or credit card using the bank’s Quick Transfer program.etrade.com
THE UP AND COMER
One day you’ll boost your financial footprint, but right now your bank account starves between paychecks. “Banking,” to you, consists of ATM visits and picking through piles of envelopes and stamps You want to eliminate surprises and penalties.
WaMu Free Checking This program is fee free, with no minimum balance required. The online savings account pays 5 percent, so you’re covered if your cash flow increases. PLus, WaMu will shoot you an e-mail or text message if your balance drops below a certain amount. wamu.com
GREAT RATES ARE THE BIG SELLING POINT FOR ALL ONLINE BANKS.
WHY BANK ONLINE?
IT’S SMART > Lapse on a credit card payment and your 1.9 percent interest rate can bump into double digits. Use automatic bill pay and never be late again. > IT’S SAFE > Victims of identity theft who receive only paper statements lose an average of $4,540. Catch a thief online and you’ll lose an average of just $550. > IT’S GREEN > E-banking could save 18.5 million trees per year, according to a Javelin Strategy & Research study. Boost your eco efforts by opting out of paper bills.