What’s Your Favorite Online Bank?
Tip It!Time for another quick, informal poll…
Last time I asked about your favorite credit cards. This time I’d like to find out about your favorite online banks. So…
What’s your favorite online bank, and why?
Please leave a comment, below…
Published on January 7th, 2008 - 73 Comments
Filed under: Banking
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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73 Responses to “What’s Your Favorite Online Bank?”
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January 7th, 2008 at 7:39 am
Bank of America: It’s easy to link all of my accounts (held at various other institutions, including rewards accounts). It has reporting (e.g. net worth, spending, budgeting, etc) that rivals stand alone tools like Quicken and MS Money (which I used to use).
January 7th, 2008 at 7:40 am
E*trade Bank is my favorite. Not only do they have one of the highest savings account rates but they offer easy one click transfers and I have a brokerage account with them.
January 7th, 2008 at 7:56 am
ING Direct is the one I use since Netbank went bust. I like them, but wish they had paper checks.
January 7th, 2008 at 8:30 am
ING BANK
January 7th, 2008 at 8:38 am
ING Direct.
The rates are not the best, but you can’t beat the website.
January 7th, 2008 at 8:41 am
WaMu:
- Tons of locations and ATMs so I can avoid fees.
- 4.75% yield on online savings after a good run at 5.0%.
- Direct link between checking, savings, and WaMu MasterCard account so I can check balances on one page.
I guess WaMu isn’t an “online bank” in the strictest sense of a bank that only exists online. But it gets the job done: high-yield savings with the perks of brick-and-mortar institutions.
January 7th, 2008 at 8:49 am
FNBO Direct – online savings only. They offer a debit card to access the savings account – which is great for emergencies. Their interested rate at 5% is very good. When I call them, I get an actual human in the US!
January 7th, 2008 at 8:52 am
Hands down, ING Direct.
I have online access to my credit union accounts, and I have online-only accounts at ING Direct and FNBO Direct. ING’s web site is superior in every way, and their product offerings are first rate. They don’t have the highest interest rates out there, but with my experience at FNBO Direct, you give up a lot by chasing the dollar.
At FNBO, I have only a savings account, but at ING Direct I have both a checking and a savings (well, 3 savings). My Direct Deposit goes to ING, and I have automatic transfers to my credit union, automatic payments (for my mortgage and my wife’s college loan, for example; these are auto payments, not auto drafts). An ING checking account comes with a debit card, so you have instant access to up to $1,000 a day of your money. I never send them a check; I take those to my CU, and transfer the money to ING after that.
As for FNBO vs ING customer service, ING wins that, with no contest. The only reason I am still an FNBO customer is because they pay higher rates.
January 7th, 2008 at 9:15 am
ING.
Not the best interest rate, but solid as a rock on customer service.
I also use Wamu because I have a local bank as well, but I have found myself on Wamu’s hold at least six times. Ugh.
January 7th, 2008 at 9:18 am
Right now, I’d say HSBC is my favorite online bank, but I’m not a huge fan. I have stopped keeping my money in online banks, since I was getting 5.25% interest in my brick and mortar savings account (which has an “ok” website) through the end of last year, and I am still getting 4.25% now that my guaranteed rate has expired. I’ll keep the money there until the rate drops so much that I feel the need to go back online.
January 7th, 2008 at 9:37 am
ING Direct all the way. I love their ticker that shows how much money their customers have saved!
January 7th, 2008 at 9:54 am
I love ING, and use it, but all my big money is at FNBO at the moment. . . If ING even went up .75 of a %, i would have everything back there in a second.
January 7th, 2008 at 10:21 am
ING Direct for their excellent service, friendly user interface, clear communication, and NO fees whatsoever, *including* the insipid foreign transaction fees. I’ve used my ING Direct checking and savings debit cards in numerous travels abroad for a few years and (at the envy of my other travel friends) have never been charged a single cent in fees.
Like rocketc, I too moved the bulk of my savings to another account with a higher yield, but I still use the account and will move everything back once all the other rates fall.
January 7th, 2008 at 10:59 am
Like many others, I really like the ING interface so I have some money there, but I have my money in a few higher-yield banks.
My paychecks are deposited into my credit union, and dispersed from there to ING (short-term savinvgs, like car insurance that’s due every six months) and FNBO Direct and e*trade savings account for long-term savings goals (higher rates, and I like that my money is more difficult to access).
I need my money seperated by categories for the inspiration of watching each grow.
January 7th, 2008 at 11:26 am
WAMU!
I have dealt with HSBC, but recently closed my savings account with them, as their rate fell below that of WAMU.
I have also dealt with Principal Bank on-line, and like them, also; but I quit dealing with them (until very recently when I opened a 14-month CD at 5.25 APY) when they sold their mortgage business, and their branded credit card went to another bank (I.E., a different website to deal with).
My mortgage is with Wells Fargo … their website is only mediaocre [sp].
I like Bank of America’s website, too, but I hate the fact that I can’t download my credit card transactions throughout the month; but only once my statement closes for the month. BofA … please fix this!!
January 7th, 2008 at 12:19 pm
My husband and I love ING Direct. While their interest rates are not the highest, they have wonderful customer service. We have nothing to complain about.
January 7th, 2008 at 12:22 pm
I have three different online savings accounts and ING Direct is far superior to the others. The web site is easy to use, I can open subaccounts without difficulty and the transfer between institutions is smooth. The interface is a big factor in my vote. One of my online accounts makes its customers go through one hoop to get an account, another to set up transfers and a third to get eStatements. I want something effortless and ING Direct is exactly that. Plus the subaccounts fit my saving methodology.
January 7th, 2008 at 2:17 pm
USAA because of deposit@home where I can scan checks in and deposits right away, free deposit envelops, $15/month reimbursement for ATM fees, low interest rates, easy interface, excellent customer service, etc. etc. etc.
Bank of America for the ability to list all your accounts from other banks, frequent flyer miles, etc; however, BofA has pissed me off, so I’m moving all my assets away from them. Terrible customer service.
I dislike ING. yes, the interface is easy to use (so are others), but come on, the rates suck, the CEO doesn’t care that the rates suck because people still sign up.
I also have/had HSBC, chase, citi, Igobanking, wachovia, and a host of others. Personally, the interfaces are all easy and if that is the driving issue, between remaining at a lower interest bearing account, then I don’t get it.
January 7th, 2008 at 3:04 pm
That scanning/deposit feature is interesting. I am going to have to look into it further.
January 7th, 2008 at 3:55 pm
I love ING Direct. Yes, their interest is a tad low right now, but you cannot beat them for customer service, transfer between other bank’s accounts, and ease of use. I just wish more poeple would get on the bandwagon so I can give out some more of the $25 bonus links that I have!
January 7th, 2008 at 4:00 pm
I love ING because it offers great rates on both accounts and allows you to have CDs as well. It is very easy to use.
January 7th, 2008 at 4:06 pm
Countrywide Bank
They have one of the highest interest rates around (for balances over 10,000, that is), interest is compounded daily, the interface is great, and transfers are quick and easy
I’ve heard so much about ING… and I’ve always wanted to try… just to compare… but countrywide offers a much better rate with a very easy and informative interface. So there will be no switching for me.
January 7th, 2008 at 4:09 pm
USAA – For the reasons listed above, but mostly for the customer service and the ease in which ANY transaction is done, even when I have to call them.
January 7th, 2008 at 5:32 pm
ING Direct. Their site is easy to navigate, opening a new account is a breeze, and they pay a very competitive rate. I work at a competing bank, but I bank at ING Direct.
For CDs I’ll rate shop at BankRate.com
January 7th, 2008 at 5:42 pm
I don’t have a favorite.
I have an ING account right now. I don’t like having a lot of different accounts, but I added this one because I could earn even more money than in my credit union’s CDs, but of course it’s a lot more flexible. I never had any problems except that should electronic transfer be same-day or next day?
Apparently other online accounts are no quicker, and some are even slower.
I didn’t mind having a slightly lower rate than other accounts for a while once all the new accounts opened up, but the difference is getting bigger and it seems like it’s going to last forever, so I’m looking for a new home for my cash. It bothers me that even though their customers are people who jumped ship for a higher interest rate, they are feeling cocky that their customers won’t do it again because of their great interface and customer service.
I don’t need sub-accounts or customer service or anything fancy. I just want a place to move money that I don’t need right now into where I can earn high returns.
January 7th, 2008 at 6:17 pm
1) ING Direct Electric Orange for day to day banking, bill pay etc.
2) WAMU for bulk of savings and brick and mortar access and the occasional check.
I also have a FNBO account but the B and M convenience of WAMU is worth the slightly lower rate (and I don’t feel like bouncing back and forth chasing rates).
January 7th, 2008 at 6:18 pm
What about online checking accts? I hear Charles Schwab Investor Checking is great (4% interest, free checks and Visa Checkcard, et al). I was thinking of opening an acct soon. Anybody had any experience with them, or any other online checking acct?
January 7th, 2008 at 8:32 pm
While I don’t like their website interface I have had no issues with The Apple Bank, through grandyeilddirect.com
They had good run at 5.27% then 5.14% and now I am sitting pretty at 4.81%.
Their customer service is great. All I did was send an email requesting sub-accounts and a few days later they showed up.
January 7th, 2008 at 8:56 pm
Emigrant. I moved most of my money out of ING when their rates dropped.
January 8th, 2008 at 8:18 am
Bank of America for checking(free checks is you have a loan) and one of the better bill pay features. For savings its wamu.
January 8th, 2008 at 9:39 am
For ease of use – ING, hands down. But ease of use doesn’t translate into higher interest, so my money is with FNBO Direct for savings and Presidential Bank for checking.
January 8th, 2008 at 11:50 am
My favorite used to be HSBC until they kept dropping their rates. I’ve moved all of my money over to WT Direct and am very happy so far. In addition to a 4.90% interest rate (instead of 4.25% at HSBC), their website doesn’t have any of the irritating problems that HSBC’s website does. Also, hopefully they answer their customers’ e-mails. HSBC does not, in my experience.
January 8th, 2008 at 12:18 pm
My favorite is whichever bank has the highest interest rate. Currently I’m using FNBO, though I realize I could eke out a slightly higher rate elsewhere, it’s not worth the hassle of moving money in this era of falling rates.
January 8th, 2008 at 1:21 pm
Apple bank and Amtrust Direct. Very attractive interest rates- watching the miracle of compound interest.
January 8th, 2008 at 1:25 pm
ING Direct – the user interface, and the customer service (that I have recvd at least) is outstanding – obviously the rates aren’t the best, but I think they are the best overall value
January 8th, 2008 at 3:10 pm
Emigrant Direct
Better rate than ING…interface is just as easy…period
January 8th, 2008 at 4:01 pm
Like many of the folks who have posted above, I was a previous NetBank customer, I decided to try both ING and Charles Schwab Bank ….. Guys Charles Schwab won, incredible customer service….. they offer paper checks (ING was considering it because of all the NetBank customer accounts) and the additional services through the associated brokerage account is impressive.
January 8th, 2008 at 6:37 pm
AMTrust Direct and Third Federal Savings. AMTrust is an easy as ING with better interest, and Third Federal Savings similarly has good rates and is in the anti-Countrywide in terms of being a good corporate citizen with its home loans.
January 8th, 2008 at 7:04 pm
I have most of my money in AmTrustDirect because of their higher interest rate but I left Ing Direct open (with a couple CDs sitting there) because I prefer their interface, too. I have a little money in HSBC but I’m thinking of closing it. Poor interest and I don’t like their interface.
January 8th, 2008 at 7:56 pm
Bank of America because they have the best mobile banking service at http://www.bofa.mobi
January 8th, 2008 at 8:26 pm
I love Emigrant Direct. I am surprised not to see it listed more. The rates are better and the interface, while nothing fancy is very simple to use. I have used their phone customer service a few times once for a general question when opening my account and maybe 2-3 times for locking myself out. I have to say I have been really happy. I am pretty sure I was calling out the the US, but the reps spoke good English and where very helpful and friendly. Better service that my B&M banks!
January 9th, 2008 at 11:02 am
I use a combination of Bank of America’s all-in-one My Portfolio to keep an eye on everything and E*Trade for my high-yield savings. Their quick transfers are second to none! I still have accounts with HSBC and FNBO with a few bucks in them in case they raise their rates to be more attractive, but the transfer speeds with E*Trade have me hooked.
January 9th, 2008 at 11:39 am
ING Direct is great, but 4.1% interest come on?
HSBC website sucks, 1 week to do an ACH, forgettaboutit
I use http://www.SalemFiveDirect.com for my banking
I like http://www.emigrantdirect.com for online savings? Why site is fugly, but it is super fast and 1 day ach, can’t be beat!
January 9th, 2008 at 12:36 pm
The service and website at ING are very good. I also have an account at HSBC. They had good rates until recently; their customer support is very poor, though. Usually you wind up talking to someone in India who can’t help you–they need to transfer you to another branch, which seems to keep 9-5 hours.
January 9th, 2008 at 1:06 pm
ING Direct. I’ve used them for maybe eight years, and I’ll admit user loyalty, but I love the simplicity of their website, their decent savings rates, and their no-minimum, interest-earning checking account.
January 9th, 2008 at 4:59 pm
My banking is probably unnecessarily complex but I have used ING Direct and they are great but the rates are too low for me. If the Fed cuts the rate again as expected then I’m sure ING will change their rates the day after the announcement. I just started using State Bank of Toledo so I can’t say anything yet but I’m already frustrated by lack of ACH access online.
I use One United for savings and they offer a lot of flexibility.
January 9th, 2008 at 9:50 pm
ING Direct is by far the easiest and simplest to set up and use. HSBC Direct is a pain in the butt to register – they make you jump through all kinds of hoops.
January 10th, 2008 at 2:37 pm
USAA. I was lucky to marry a man who had an account (it’s military and their family only) and it is awesome. you can deposit checks AT HOME if you have a scanner (ingenious) and if you don’t, they’ll send you free deposit envelopes. you can go to any atm and they’ll give you back up to $15 in atm fees. they give you cash back for using your mc debit card, the online bill paying is awesome, and the customer service CANNOT be beat. We always get a dividend check back at the end of the year on our car insurance. Our credit card NEVER has a minimum payment, and thus there is NEVER late fees (maybe this is just us?)
We switched over to BoA for a while because I was doing some freelance and wanted to make deposits faster (this was before deposit@home) and we ended up switching back after 3 months. Love us some USAA!
January 10th, 2008 at 10:06 pm
Gmac Demand Notes…Easy transfer, real paper checks, monthly statement mailed to you and best of all 5.75% interest as of this date 1-10-08
January 10th, 2008 at 10:52 pm
FNBO – had 6% interest for part of 2007. Now at 5.05%. I also had ING then HSBC, but switched due to their lowered rates.
Why is everyone is raving about customer service for a checking/savings account? I wanted an online bank so I can log on, check my balance, and that’s it. If I was worried about customer service, I would put my money into the bank down the street.