Internet-only banks

[dad]

Does anyone have any experience with online-only banks such as INGDirect? I was looking at these and wanting to hear some of your experiences.
/THANKS/

[CountAllVotes]

1. I've had accounts at two different ones

I had one at virtualbank.com for awhile. It was ok but I closed it out (too many accounts going - too complicated for me).

I still have one at Emigrant Direct. I don't have much in it but it does pay 4.65% a month at present. It takes a couple of days for the money to show up in the bank account at Emigrant Direct if you wish to transfer the funds to it. The same goes for vice-versa.

It has been positive but I'd warn you on ING's Orange Savings acct. Seem ING Financial Services was recently the subject of a laptop that went *poof*.

I guess it is safe. However, I can't help but wonder is it really safe?

I hope this helps.

:dem:

[dad]

2. -

I read about the ING laptop issue. It is amazing how they will go through all of this security on the web end of the product to prevent against keylogging spyware and then do nothing to protect our data on the back end. ING is not the only company having these types of problems with security. I am a veteran and recently got the letter describing how all of our identity-stealing information is out there waiting to be taken.

[scruffy]

3. Aside from the security issue . .. .

I would not want to have ALL of my cash in a place accessible only through the internet - I would want to have some portion of it in a local bank or credit union - one I could walk or ride my bike to . . . just in case we have that up-coming terrorist attack or some other melt-down.

[CountAllVotes]

4. I had it like that for awhile

Sure, I was getting more interest but there was a couple of times I couldn't log in, etc. What if your computer goes *poof* on you? I don't know what to say about this. I see both sides.

I made money yes. Do I feel safe about having it where it was? No.

With that statement in mind, I withdrew most of the money I had in it and it is now in my bank's money market acct. which draws ~1.0% less. It's worth it really as I don't have that much cash around. Most is invested in CDs and a few other things.

I feel like it is a risk no matter what. Of the two I dealt with I found Emigrant Direct to be the seemingly most secure.

Some of these places ask a lot of questions - too many of them.

I hope this helps. I don't know is my answer. However I do agree, stay away from ING.

[IronLionZion]

5. I recommend HSBC

they have a huge online banking system and currently give 4.8% on the online savings account. No branches near me now, but I originally signed up when I lived in NY where they have lots of branches. I've been with them for about 5 years now and can't complain. My life savings are with them, but I also have two local accounts for ATM access and check deposits.

[CountAllVotes]

6. I don't like HSBC

It is the Hong Kong and Shanghai Bank - an old bank yes. However, the process of opening an account online is a nightmare I think. They ask too damn many questions. What the hell do they need my driver's license for exactly? That is one of many other questions they ask before you can open an account with them.

So for this reason I'd say stick with Emigrant Direct. I heard they are now paying 4.85% which is pretty good for this type of an account.

:dem:

[Nite Owl]

7. I've used and online bank for a couple

of years now. I like them very much and so far no problems. You can send in ATM receipts and they reimburse you so that is no problem and once I had trouble getting on the site and when I called they gave me a backdoor address and I got right on. Someone is there to answer the phone 24/7 and you get a real person which is more than can be said for most banks. Interest rates are very good.

www.everbank.com

[jadedconformist]

8. emigrantdirect.com is good

http://www.emigrantdirect.com

The setup process takes a while, but great rate. :)

[SKKY]

9. Mine isn't an online-only per se, but it might as well be for me...

...because USAA only has an office in Texas. I actually love USAA, and would recommend
them to anyone able to open an account. I do all, I mean all of my financial and
insurance transactions online, through 1 portal. And since the don't have any USAA
ATM machines, they refund all ATM fees I acrue. The only problem I've had, if you
can call it that, has been depositing money. I have to purchase a money order, and then
send it to the snail-mail. Kinda a pain, but I don't do a great deal of depositing, so
it's not as big a deal to me as it might be for some.

[MemphisTiger]

10. I'm not a big fan of internet bank accounts just because

if something goes wrong I want to have a local throat to choke, rather than an email message war with the manager of my money.

[Zenlitened]

11. Very happy with ING Direct. Their rates are better than at my local...

... "brick and mortar" banks, including a good range of CDs with tools for easy "laddering."

The account is linked to my local bank checking account for transfers back and forth. Transactions are done in a fairly timely way, at least by the industry's somewhat mopey definition of "timely." :D

I like the automatic transfer option, too. I've set it up so that each month a set sum of money is transferred directly from my local checking account to my ING savings. Makes it very easy to be disciplined about saving regularly. Yes, my local bank could do this too, but they admitted flat-out that they couldn't match the online rates.

They're good people, and I rely on them for other services, so like some of the other posters in this thread I don't think I'd ever go exclusively on-line.

Unless... I one day live out my daydream of wandering the world with little more than a knapsack, a handheld computer/cellphone, and a credit card tapped into my vast financial holdings. It's the "vast" part of the "financial holdings" thing that keep this at daydream status at present! :spray:

[truebrit71]

12. I absolutely agree. I love INGDirect....

...I have taken a look at Emigrant and HSBC that have marginally better rates, but I am just more comfortable with the ING website, and the ease of automatic transfers to savings being swept away from my checking account before I get the chance to spend it...

[gulfcoastliberal]

13. Right now ELoan has a savings account paying 5.5%

The actual bank is called Banco Popular out of Illinois. It's FDIC insured - I did run them through the FDIC website just to make sure. If you want to do CDs I believe their rate is also 5.5% and 5.7% if you go 18 months.

My grandmother is very ill and I'm helping her manage her money (and everything else). I figured since it's n American bank and FDIC insured, it's ok.

It's easy to set up and you just link it to your local checking account pretty much the same way as Pay Pal (via ACH). They do the little deposits in the checking to confirm ACH is setup correctly and then you can transfer funds. They pay the interest monthly on the anniversary date. So now grandma gets over $400/month in extra income from the interest - no commissions, no stealing half a point of interest like her Merrill Lynch account does on CDs in her portfolio. I'm transferring those securities from Merrill to Scottrade.

[DemReadingDU]

14. It's been a couple of years. How do you feel now about Internet-only banks?

Interest rates on CDs suck. I was thinking of moving the money to an Internet bank because they pay higher interest. INGDirect? Everbank? Others?

Good, bad?

Thanks for opinions.