Online banks may feel inherently insecure, especially with all the discussions around election hacking and identity fraud. However, with the help of our analysis, finding the best online bank for your needs has never been more simple. Below, we detail out the five w's. Who, What, When, Where and Why of online banks. Oh yes, and the How! :) Also, making your money work for you will help in your relationships and ward off red flags!
Let’s start by looking at some of the best online banks of 2017.
Best Online Banks 2017
The benefits of online banks can range from super competitive interest rates, lower fees, and of course, the fact that everything is accesible 24/7 online. There are a number of different banks to choose from. I personally have had online accounts at Capital One 360 (previously ING).
Based on the experts over at DoughRoller, here are some of the best online banks in 2017:
Synchrony Bank – Recognized as one of the best online banks around, Synchrony Bank consistently gets Bankrate.com’s “5-Star Safe & Sound Rating.” Also, Kiplinger’s ranked their 1- and 5-year CDs as the top yielding CDs in 2014. Doughroller consistently tracks the best interest rates each month, and Synchrony Bank routinely makes the top of their list.
Discover Bank – Discover is more than just credit cards. Through [Discover Bank(https://www.discover.com/online-banking/), customers can find great rates on nearly any type of account they want – including checking, savings, money market, CDs, and IRAs.
Dime Community Bank – Dime Bank has been around since 1864 (obviously not in online banking since then), Dime is a great option for those looking for a community bank. A Community Bank is a commercial bank that derives funds from and lends to the community where it operates, and is not affiliated with a multibank holding company. And as with most online banks, Dime offers very competitive rates with low fees.
Ally Bank – Formerly known as GMAC Bank, Ally has been recognized by Kiplinger’s and Money Magazine as the best online bank. With no physical stores, Ally is able to keep capital costs down and send those savings on to the customer by giving some of the best interest rates out there!
FNBO Direct – First National Bank of Omaha offers a competitive Annual Percentage Yield (APY), which is defined as the effective annual rate of return taking into account the effect of compounding interest, for its online savings account. One shining example of how good FNBO is it offers an interest bearing checking account that currently pays 0.65% APY.
CIT Bank – As interest rates slowly start to rise, CIT Bank is vying for the top spot. It currently offers one of the highest APYs available. In addition, for a limited time, it is offering a cash bonus of up to $400 on new accounts.
Capital One 360 – Capital One 360, formerly ING Direct, may seem like a new online bank, but they were one of the first online banks ever.
American Express – American Express offers high yield savings accounts through their American Express Personal Savings online bank. Additionally, customers can shop for high yield certificates of deposit through the online platform.
EverBank – Everbank offers a high-interest checking account, as well as certificates of deposit based on currency trades.
How To Withdraw Money From An Online Bank
Once you've signed up with an online bank, getting your money may feel confusing. However, online banking customers can access to their money in many different ways.
ATMs: Most online banks have agreements with ATM services that allow their customers access to cash from these machines without paying a fee. Again, ATMs may be subject to a daily withdrawal limit.
Large Cash Withdrawls: Debit Card Cash Advance. To get more money from your online bank (more than the ATM limit), go to a bank and tell the teller: “I’d like to take a cash advance against my Visa card.” (or MasterCard, if your debit card is a MasterCard). Don’t mention it’s a debit card because it will confuse the teller. As long as the card carries a Visa or MasterCard logo, they will do it the same way whether it’s credit or debit. They will ask for your ID. Then they will run your card on a terminal. You sign the slip before they give you the cash. Think of it as buying cash. Also, the bank doesn't charge a fee (like a store would). There is a dollar limit to this method as well, but it's much higher than an ATM. Some banks are $2,000 or even higher.
Debit Card: The easiest way to make a purchase is to use the debit card provided by your new bank. Typically, these cards will have a daily purchase limit that protects your account from unauthorized purchases.
Paper Checks: Online banks may also provide customers with access to paper checks and online bill payment systems. Customers may also transfer funds to a traditional bank, which can then be accessed at that bank’s physical location within a few days. This can typically be done without incurring any fees.
Electronic Transfers: As mentioned above, this is how we access are funds in most cases. We simply transfer the money to our primary checking account.
How To Deposit Cash To Online Bank Account
It’s very easy to deposit a check to an online bank account. Just pop it in the snail mail (USPS) and wait for the funds to appear. Many online banks also offer remote deposit by smartphone or computer scanner. USAA accepts check deposits at UPS Stores. Fidelity takes checks at their local offices.
Depositing CASH? Not so fast. You know you are not supposed to send cash by mail. UPS Stores don’t accept cash deposit for USAA. Fidelity’s local offices don’t take cash either. Take a picture of the cash with your smartphone? Good try.
Buy a money order and then do the deposit by mobile phone? First, a money order costs money. Second, you want to check to see if the mobile deposit app accepts money orders. Mobile apps from Ally, Capital One 360, and Fidelity all don’t accept money orders.
I recently had to deposit some cash. I used this state-of-the-art device that sits outside our cafeteria at work. It took my cash, counted the bills, deposited it, and then gave me a receipt. All done in less than 1 minute.
ATM Machine. ATM machines can accept cash and most online banks have contracted ATMs. Voila! Problem solved.