Online Banking

The Growing Trend of Online Banking

More banks than ever are offering online banking. Some, like Ally Bank are set up entirely as online banks. Those who take advantage of these kinds of accounts can enjoy better rates and free checking. Many even offer reimbursement for ATM fees as a result of the fact that they do not have any ATM machines for you to access.

The biggest advantage of internet banking is the security that it offers you. Because you have constant access to your bank, you will be able to monitor your accounts closely. Using secure servers and enhanced firewalls allows for additional protection of your financial information while still allowing you to have full access to your accounts.

The best way to get the most from these kinds of accounts is to choose the top online banks. Currently, these are listed as:

  • Ally Bank
  • ING Direct
  • USAA Free Checking

Those looking at USAA do not need to be related to anyone in the military to get a bank account any longer. Only those looking to use the insurance or other services from USAA will need to prove military connections.

The most important thing is to make sure that you are choosing the best online banks for your needs. If you have had some financial difficulty and need a fresh start, companies like Ally Bank can help by allowing you to open an account with only $1 as a starting deposit. The initial deposit for these accounts should come directly from your current bank account. Most will require no minimum balance as long as you are keeping your account in good standing.

Another thing to pay attention to when choosing an online bank is online bank rates. These are the rates you will be able to earn interest. Most banks will require that you have thousands of dollars in the bank before you can earn interest. These online accounts allow you to earn interest at 1% or better. The amount you will be able to receive as an interest rate is determined by the money you have in your account.