You’ve seen their ads and you may have wondered if they’re worth seeing again. What am I talking about? Online Banks! Also known as internet banking, these are financial institutions that provide most of their banking services over the internet. Typically, online banks offer consumers high savings rates, low interest rates and a mix of other services. Let’s look at 7 winners in this fast-growing field:
1. A Trade Bank Part of E Trade Financial, discount internet broker. E Trade Bank offers checking accounts, money markets, certificates of deposit and a VISA credit card.
2. Netbank Along with offering checks and money market accounts, Netbank provides mortgages and equity lines of credit to customers. In connection with affiliated companies, Netbank also offers cars, homeowners, condo / co-op & tenants insurance and life, health, long-term care and dental insurance.
3. Virtual bank VirtualBank, a branch of Lydian Private Bank, is a federally chartered bank regulated by the Office of Thrift Supervision. The bank offers checks, savings and credit card services to customers.
4. Ever Bank This leading banking service provider offers the most comprehensive and varied services of any online institution. Ever Bank offers business and personal checking accounts, mortgage loans, home loans / lines of credit, reverse mortgage loans, a VISA credit card and world currency accounts. This latter category is intended for investment in deposit accounts and CDs in any major world currency.
5. Emigrant Direct Part of the Emigrant Savings Bank, which traces its roots back to 1850 as a service provider for Irish immigrants. Emigrant has $ 10 billion in assets and over $ 1 billion in net worth. It operates as a full-service bank through 36 branches in the New York metropolitan area and through EmigrantDirect.com. Emigrant only offers consumer services online; their high paying savings account is an important investment vehicle.
6. ING Direct ING is a global financial institution of Dutch origin, offering banking, insurance and asset management to over 60 million private, commercial and institutional clients in more than 50 countries. ING offers mortgages, loans / lines of credit, savings accounts, certificates of deposit and mutual funds in money markets through another branch.
7. MetLife Bank Yes, MetLife. MetLife Bank, a division of Metropolitan Life insurance magazine, offers savings accounts, certificates of deposit, money market accounts, mortgage loans and IRAs to consumers.
If you bank exclusively with a “brick and mortar” institution, you may be missing out on high paying investment opportunities or competitive loan rates that easily undermine many traditional banking units. These success stories online banks are only part of a growing number of savvy providers, some of which are definitely worth looking into by you, the consumer.