Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Best overall Internet Bank?
Old 03-27-2018, 02:41 PM   #1
Recycles dryer sheets
 
Join Date: Feb 2018
Posts: 98
Best overall Internet Bank?

With dozens of Internet Banks out there now, It seems like they all have good points and bad points, some have the best savings interest rate, some have the best rates on a certain length CD, others on different length CD's. Currently I have accounts at Ally and Synchrony. I am happy with both, but neither one has the top rates. I was curious on what Internet banks others are using and are happy with.
__________________

jjflyman is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-27-2018, 03:00 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,065
I use Charles Schwab Bank and I have nothing but good things to say about them. Great website, great mobile app, great 24/7 U.S. based customer service, great products. I especially love their online customer service chat feature that is available 24/7, I like being able to type a question on my computer and give the rep time to think about an answer and type a response without having to call and talk to someone and wait on hold.

As a bonus, even though they only have one physical bank location (I think it is in Nevada), they have lots of brokerage locations where you can go and talk to someone face to face if you need to, although it is unlikely that you ever will. The brokerage offices are not banks, they don't give out or take cash, but they can otherwise handle most Schwab bank related needs. I dumped my local brick and mortar credit union and I haven't looked back.
__________________

JustCurious is offline   Reply With Quote
Old 03-27-2018, 03:18 PM   #3
Moderator Emeritus
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 13,518
There is no one bank that fits everyone for every need, so you'll have to pick and choose the features you want.

I use six different banks for different reasons. It doesn't cost me any more to have things spread around that way, and if one of them went south I could still do what I needed.
braumeister is offline   Reply With Quote
Pinching pennies... for nothing
Old 03-27-2018, 03:27 PM   #4
Full time employment: Posting here.
Luck_Club's Avatar
 
Join Date: Dec 2016
Posts: 700
Pinching pennies... for nothing

OK so I've recently opened a brokerage cash management account through fidelity. This was after reading a book called IIRC "safe Money". The book advised to dump your brick and mortar bank for a brokerage checking, which would pay a higher rate on the float.

Did a bunch of research, and decided to KISS so went with a fidelity account. Fast forward. The clearing position is 0.19% not the SPAXX rate of 1.2%. So every deposit requires a manual move to the higher account. Then a move back to pay a bill or make a transfer.

So basically assuming you have about a $10,000 average monthly balance. You will be doing a ton of work to make that extra $100. Is it really worth it?

On the positive side it made it easier to put extra cash to work in T-Bills. However, I don't think it will work for my everyday banking.
__________________
2017 dry run spending: 2018 accelerate debt elimination: 2019 RV procurement & 1MY begins: 6/19 DW last month went early: 9/19 start cross country loop: 1/20 first reinforcements arrive. 6/20 sell business or shut doors. 9/20 begin globe trot: 4/26 401K reinforcement.
Luck_Club is offline   Reply With Quote
Old 03-27-2018, 03:54 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,065
Quote:
Originally Posted by Luck_Club View Post
OK so I've recently opened a brokerage cash management account through fidelity.
Note that a cash management account is not the same as a bank checking account. A cash management account is provided by a brokerage, whereas a bank checking account is provided by a bank or a credit union. Schwab bank is a separate entity from the Schwab brokerage. They are related, and they do work together, but they are different entities. One is a bank, and the other is a brokerage.
JustCurious is offline   Reply With Quote
Old 03-27-2018, 04:22 PM   #6
Recycles dryer sheets
 
Join Date: Nov 2013
Posts: 136
I've been happy with Alliant Credit Union for two years. Anyone can join with an online $10 donation to Foster Care to Success.

Savings currently pays 1.45%. 1-day electronic transfers.
Checking pays 0.65% as long as you have one monthly direct deposit. No minimum balance.
Free overdraft protection from savings to checking so you can mostly be earning the savings rate.
Visa debit card with ATM fee refunds, up to $20/mo.
Visa Signature card pays 3% cashback with no fee the first year, then 2.5% cashback with $59 annual fee thereafter. No FTF.
24/7 phone support.

Their website feels dated, but it's functional. Phone app is pretty good. Branches are only in the Chicago area, so it's effectively an online credit union.
Done is offline   Reply With Quote
Old 03-27-2018, 04:45 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: Midwest
Posts: 1,637
Quote:
Originally Posted by jjflyman View Post
With dozens of Internet Banks out there now, It seems like they all have good points and bad points, some have the best savings interest rate, some have the best rates on a certain length CD, others on different length CD's. Currently I have accounts at Ally and Synchrony. I am happy with both, but neither one has the top rates. I was curious on what Internet banks others are using and are happy with.
+1.
The thing about Ally and Synchrony is that they both usually seem to be on the high end of the savings rates-not using bait and switch.

Do any of you know of internet banks with similar track records? Or any to avoid?
brucethebroker is offline   Reply With Quote
Old 03-27-2018, 04:48 PM   #8
Moderator Emeritus
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 13,518
Quote:
Originally Posted by brucethebroker View Post
+1.
The thing about Ally and Synchrony is that they both usually seem to be on the high end of the savings rates-not using bait and switch.

Do any of you know of internet banks with similar track records? Or any to avoid?
I've been very happy with an online savings account at Discover Bank for many years now.

If you travel, my debit card from Schwab Bank lets me get local currency from an ATM at no cost.

And for convenience, I use a true chip & pin card from First Tech that defaults to pin instead of signature, just like cards issued in Europe.
braumeister is offline   Reply With Quote
Old 03-27-2018, 05:11 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,547
I use Ally Bank. Although not the top of the savings rates, they are competitive with an easy to use web site and efficient customer service.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 03-27-2018, 05:59 PM   #10
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 3,632
Quote:
Originally Posted by braumeister View Post
There is no one bank that fits everyone for every need, so you'll have to pick and choose the features you want.

I use six different banks for different reasons. It doesn't cost me any more to have things spread around that way, and if one of them went south I could still do what I needed.
+1 on the first sentence. I use the Schwab bank. As a bank. For a checking account backed with a reserve line of credit. I use their debit card which has no FTFs and which rebates all ATM fees including non-US ATMs. I can't imagine why I would want to have a savings account as I keep my cash-type assets in my investment accounts. On the rare occasions where I want to buy a CD, I buy it from the Schwab bond desk. So I don't worry about what Schwab pays on savings or CDs as I don't need either service.

For the very rare occasion where I need larger amounts of physical cash, I keep an almost-idle Wells account to which I transfer from Schwab, then go to a local branch to get the cash. Typically this is twice a year for $1 or $2K for an international trip, but I could do that with a few days of ATM withdrawals, too.

To the second sentence, though, I am totally amazed. @braumeister, what causes you to deal with so many banks?
OldShooter is offline   Reply With Quote
Old 03-27-2018, 06:19 PM   #11
Moderator Emeritus
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 13,518
Quote:
Originally Posted by OldShooter View Post
To the second sentence, though, I am totally amazed. @braumeister, what causes you to deal with so many banks?
Inertia?

Schwab for the debit card like many here. Foreign currency from ATMs at no cost.

First Tech for the true chip & pin credit card -- it gives such convenience when traveling.

Chase for a local B&M -- just like you do with your Wells account. Also handy if I need a notary.

PenFed for their CDs and just because I've been a member there forever.

USAA because I've also been a member there forever and it has always been my main checking account.

Discover for the online savings account -- a handy place to store cash and currently 1.55% so not a bad option.

And oh yeah, I forgot about the Fidelity cash mgt account. Love their 2% back credit card.

I know I should probably drop a couple of these but I really don't mind dealing with them all.
braumeister is offline   Reply With Quote
Old 03-27-2018, 06:33 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 22,949
I have accounts at 3 internet bank high yield savings accounts, Charles Schwab bank checking (for travel), and 3 credit unions where I opened accounts online to buy CDs. And also a cash management (checking) account at Fidelity Brokerage in addition to my traditional Bank of America checking account.

This proliferation did not exist before 2010 and then when the temporary FDIC insurance on money market accounts expired. Actually looks like Jan 2013 was when I first opened an internet high yield savings account. By then money market funds at brokerages - yields had gone to zero, and CDs started to yield better than bonds, so I started branching out opportunistically.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 03-27-2018, 06:36 PM   #13
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 3,632
Quote:
Originally Posted by braumeister View Post
Inertia? ... I know I should probably drop a couple of these but I really don't mind dealing with them all.
Well, we're retired. We have time and we need good hobbies!
OldShooter is offline   Reply With Quote
Old 03-27-2018, 06:49 PM   #14
Confused about dryer sheets
 
Join Date: Mar 2018
Posts: 1
Quote:
Originally Posted by Luck_Club View Post
OK so I've recently opened a brokerage cash management account through fidelity. This was after reading a book called IIRC "safe Money". The book advised to dump your brick and mortar bank for a brokerage checking, which would pay a higher rate on the float.

Did a bunch of research, and decided to KISS so went with a fidelity account. Fast forward. The clearing position is 0.19% not the SPAXX rate of 1.2%. So every deposit requires a manual move to the higher account. Then a move back to pay a bill or make a transfer.

So basically assuming you have about a $10,000 average monthly balance. You will be doing a ton of work to make that extra $100. Is it really worth it?

On the positive side it made it easier to put extra cash to work in T-Bills. However, I don't think it will work for my everyday banking.
Hi Luck Club, I also have started using Fidelity brokerage cash management since I retired last summer as my main banking. You can change your core account from the standard low rate that is setup to a new core account with higher rate. Under the Positions section click on the symbol and when it expands you have the option to "Change Core Position". I am using FZFXX FIDELITY TREASURY MONEY MARKET FUND at 1.24% current yield and it works just like the core account.


I also have the 2% Fidelity credit card that Braumeister mentions and it adds to this core account automatically everytime it hits 5000 pts.
MandM is offline   Reply With Quote
Old 03-27-2018, 08:31 PM   #15
Full time employment: Posting here.
Luck_Club's Avatar
 
Join Date: Dec 2016
Posts: 700
Quote:
Originally Posted by braumeister View Post
Inertia?

Schwab for the debit card like many here. Foreign currency from ATMs at no cost.


This was my initial thoughts on the fidelity account, only to find out after reading the disclosures that it had a foreign currency fee.

Does Schwab really convert to foreign currency no fee and at market exchange rates?

GOOD PROBLEM TO HAVE. Money spread out in a bunch of different places.
__________________
2017 dry run spending: 2018 accelerate debt elimination: 2019 RV procurement & 1MY begins: 6/19 DW last month went early: 9/19 start cross country loop: 1/20 first reinforcements arrive. 6/20 sell business or shut doors. 9/20 begin globe trot: 4/26 401K reinforcement.
Luck_Club is offline   Reply With Quote
Old 03-27-2018, 08:39 PM   #16
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 3,632
Quote:
Originally Posted by Luck_Club View Post
... Does Schwab really convert to foreign currency no fee and at market exchange rates? ...
It's been my understanding that it is Visa or MC that does the conversion at wholesale market rates, then they charge the card issuer a (roughly) 1% fee, which the issuer either eats or marks up and passes it to the card holder as the FTF.
OldShooter is offline   Reply With Quote
Old 03-27-2018, 08:46 PM   #17
Full time employment: Posting here.
Luck_Club's Avatar
 
Join Date: Dec 2016
Posts: 700
Quote:
Originally Posted by MandM View Post
Hi Luck Club, I also have started using Fidelity brokerage cash management since I retired last summer as my main banking. You can change your core account from the standard low rate that is setup to a new core account with higher rate. Under the Positions section click on the symbol and when it expands you have the option to "Change Core Position". I am using FZFXX FIDELITY TREASURY MONEY MARKET FUND at 1.24% current yield and it works just like the core account.


I also have the 2% Fidelity credit card that Braumeister mentions and it adds to this core account automatically everytime it hits 5000 pts.
Thanks just called Fidelity. I opened the account backwards. I guess if I had opened a brokerage account, and then added the Cash Management Feature, I could have had it automatically pull from a brokerage at set levels, so it kept the account topped off so to speak.

The only core available the way I opened it is the FDIC account. However, I can move money into the FZFXX or even FZDXX which is yielding 1.62% or SPRXX @ 1.51%. But it is a manual transfer in both directions.

Given the schwab account has the international ATM, that looks like the path I should pursue, along with a BOA or Wellsfargo account for COLD HARD CASH. Not a big fan of ATM 20's.

The 2% is another tough decision. I've always had a 1% cash back card, and I use the card's annual report to keep expenses straight for taxes. I have to be very careful on switching since I already spend 40+ hours compiling the numbers for taxes, not having an annual report that can be imported into excel would be murder.

Always amazed at what I can learn from this site. Truly a gift that keeps on giving.
__________________
2017 dry run spending: 2018 accelerate debt elimination: 2019 RV procurement & 1MY begins: 6/19 DW last month went early: 9/19 start cross country loop: 1/20 first reinforcements arrive. 6/20 sell business or shut doors. 9/20 begin globe trot: 4/26 401K reinforcement.
Luck_Club is offline   Reply With Quote
Old 03-27-2018, 09:08 PM   #18
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 3,632
Quote:
Originally Posted by Luck_Club View Post
... Given the schwab account has the international ATM, that looks like the path I should pursue, along with a BOA or Wellsfargo account for COLD HARD CASH. Not a big fan of ATM 20's. ...
A couple of comments:

First, for international travel DW and I each carry a debit card for ATMs and a credit card, 4 separate issuers. Things are getting better every year, but we have had cases where one of the debit cards didn't work or only worked on a specific bank's ATMs. Hard to find ones, of course. I have also had issuers' fraud software block a card when we're traveling, even when I had contacted them ahead of time with an itinerary. Hence, two different debit cards and two different credit cards. Also, using credit cards at ATMs is apparently a cash advance and you get clipped interest from day zero. I have never tested this but I have read it.

Re hard cash, yes. We just got back from Myanmar and only new and like-new US $100 bills were acceptable for some payments. Lots of counterfeits out in the world, particularly overseas. So not only did I have to get the bills from the Wells teller line, I had to inspect each one. So the ATM's $20s aren't always an option, particularly for 3rd world country travel.
OldShooter is offline   Reply With Quote
Old 03-27-2018, 11:48 PM   #19
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 3,059
Quote:
Originally Posted by MandM View Post
Hi Luck Club, I also have started using Fidelity brokerage cash management since I retired last summer as my main banking. You can change your core account from the standard low rate that is setup to a new core account with higher rate. Under the Positions section click on the symbol and when it expands you have the option to "Change Core Position". I am using FZFXX FIDELITY TREASURY MONEY MARKET FUND at 1.24% current yield and it works just like the core account.


I also have the 2% Fidelity credit card that Braumeister mentions and it adds to this core account automatically everytime it hits 5000 pts.


Thanks for this tip, I will check this out tomorrow.
Scuba is offline   Reply With Quote
Old 03-28-2018, 02:37 AM   #20
Recycles dryer sheets
 
Join Date: Nov 2013
Posts: 136
The Fidelity Gold Visa check card does charge 1% FTF for debit purchases, but NO FTF for ATM withdrawals. They also refund any ATM fees. This has been my personal experience for years and it was recently confirmed again on FlyerTalk. https://www.flyertalk.com/forum/cred...rfriendly.html
They need to clear this up in the terms and market this better.

Fidelity Visa Signature charges 1% FTF but gives 2% cashback. Iím in the process of switching to the Alliant card I mentioned above that has no FTF and 3% (later 2.5%) cashback. I have a message in to Alliant to see if their debit card charges a FTF at the ATM.
__________________

Done is offline   Reply With Quote
Reply

Tags
ally bank, internet bank


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
30/70 asset allocation is the best overall? Chuckanut FIRE and Money 109 04-17-2015 09:19 AM
What's the best overall Money Management book? marc515 FIRE and Money 18 11-27-2012 06:54 AM
What Overall Rate of Return do you use in your financial projections Arc FIRE and Money 45 03-26-2008 07:15 PM
Figuring overall portfolio expense? hogtied FIRE and Money 3 01-07-2008 10:41 PM
Whats your overall expense ratio? cute fuzzy bunny FIRE and Money 58 03-18-2006 12:42 PM

» Quick Links

 
All times are GMT -6. The time now is 09:15 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
×