Are you ready for an Internet bank? Part 3 - Savings accounts
Jul 14 '00
There are many Internet-only banks to choose from that offer a varying menu of services. I previously did a general comparison of traditional and Internet banks and provided a quick guide to choosing an online bank, and also a more specific comparison of checking accounts offered by some of the more well-known Internet-only banks. There’s no way I can compare every single bank so I’m just trying to hit the main ones to give you a good idea of what you can expect.
The bank you choose depends on what features you’re looking for. This comparison will show the differences of savings/money market accounts only. A lot of the banks may have additional services as well, such as brokerage accounts, certificates of deposit, credit cards, personal loans, etc. that you may want to explore.
The online banks included in this comparison are CompuBank (recommended 76% of the time by Epinions members with 40 reviews written), NetBank (recommended 78% of the time with 50 reviews), Security First Network Bank (SFNB) (recommended 76% of the time with 30 reviews), and USA Bancshares (recommended 57% of the time with 15 reviews). (See below for web site URLs.) (Note: Wingspan Bank and X.com were included in my checking account review, but as neither of them offer either savings or money market accounts, they are not included here.)
I hope someone finds this review useful!
(Services, descriptions, rates and fees are accurate as of July 14, 2000 but may change at any time.)
Minimum opening balance
• Basic savings:
CompuBank - $100
NetBank - no basic savings account
SFNB - $100
USA - $1
• Money market:
CompuBank - $2,000
NetBank - $100
SFNB - $1,000
USA - no money market account
Monthly service charge
• Basic savings:
CompuBank - none
NetBank - no basic savings account
SFNB - none
USA - none
• Money market:
CompuBank - $10 per month if balance is less than $2,000; no charge if balance is $2,000 or more
NetBank - none
SFNB - none
USA - no money market account
Interest rate
• Basic savings:
CompuBank - 3.50% rate / 3.56% annual percentage yield (APY) regardless of balance
NetBank - no basic savings account
SFNB - 2.57% rate / 2.60% APY regardless of balance
USA - 2.96% rate / 3.00% APY for balances up to $1,000; 4.89% rate / 5.00% APY for balances over $1,000
• Money market:
CompuBank - 4.75% / 4.86% APY regardless of balance
NetBank - 5.83% / 6.00% APY regardless of balance
SFNB - 0.00% rate / 0.00% APY for balances up to $1,000; 3.92% / 4.00% APY for balances from $1,000 to $5,000; 4.88% rate / 5.00% APY for balance $5,000 and over
USA - no money market account
Checks
CompuBank - first order free, price varies on reorders
NetBank - first order and reorders are free on standard checks
SFNB - first order free, price varies on reorders
USA - first order free, price varies on reorders
Web site
CompuBank - located at http://www.compubank.com; web site is relatively easy to move around in; demo is available
NetBank - located at http://www.netbank.com; web site is relatively easy to move around in; demo is available
SFNB - located at http://www.sfnb.com; web site is relatively easy to move around in; limited demo is available
USA - located at http://www.usabancshares.com; web site is clunky and slow loading; demo is available
Miscellaneous
CompuBank - limit of 6 non-ATM transactions per statement, only 3 of which can be a check (for both savings and money market)
NetBank - same limit
SFNB - same limit
USA - same limit
As with the checking accounts, each bank has different features, fees and quirks.
I mentioned in both of my earlier reviews that you should carefully research the online banks before choosing one and that advice continues to hold true. But I hope this review helps you see some of the higher-earning savings options that are out there in the virtual banking world.
 |
|
|
|
|
|
|
Epinions.com ID:
slhansen
|
|
Member: Steph ~
Location: Texas
Reviews written: 82
Trusted by: 82 members
|
|
|
© 1999-2009 Shopping.com, Inc.