# Anybody ever use an Internet Only Bank? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [October 9, 2011, 4:29pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083 "2011-10-09T16:29:57Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![Measure\_for\_Measure](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/measure_for_measure/32/557_2.png) [@Measure\_for\_Measure](https://boards.straightdope.com/u/Measure_for_Measure)\ **Post date:** [October 9, 2011, 8:16pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/21 "2011-10-09T20:16:31Z")
No, you don’t need to be military to work with USAA bank. USAA insurance is another matter. “…certain products, including investments, financial planning, life insurance and banking products — checking, savings, CDs and credit cards — are available to the public.” > [@Doctor](#): > > Here is a question: have any of you experienced a sudden change in the account structure or fees which makes your account quite different from what you originally signed up for? I have had this happen with 2 different banks (Chase and Wells Fargo) and it pissed me off enough to take my business elsewhere. I would like to find something where this is a non-issue. Wells Fargo will move your cheese constantly. Chase is only slightly better. USAA rocks. They have terrific customers service and they don’t yank your chain like the money center banks do. Admittedly, I signed up for their credit card when they had zero late fees. They later put those in. But stunts like that are rarer than at most other places. ATM Fees: “USAA does not charge a fee for the first 10 ATM withdrawals and refunds up to $15 in other banks’ ATM usage fees each month. A 1% foreign transaction fee applies to withdrawals outside the United States.” Sometimes an ATM with fees above $1.50 will reject your USAA request in my experience. YMMV. USAA’s brokerage fee structure encourages frequent trading, which is odd for an otherwise consumer-friendly cooperative. (USAA members own the organization.) MfM’s other recommended financial institution is Vanguard, but they don’t have a bank. I trust them a little more than USAA, and I trust USAA a lot more than your average organization. ---
**Author:** ![Al\_Bundy](https://avatars.discourse-cdn.com/v4/letter/a/e79b87/32.png) [@Al\_Bundy](https://boards.straightdope.com/u/Al_Bundy)\ **Post date:** [October 9, 2011, 8:57pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/22 "2011-10-09T20:57:31Z")
Flagstarr offers online banking that I use efficiently. I recently had a large sum to place somewhere other than Flagstarr and took a look at Ally Bank. First, they could not transfer funds from either of two separate banks. Then they did not send deposit envelopes in over three weeks. In the meantime, they sent me two change of addresses in two separate envelopes when I have been at the same address for over 20 years. And their email to me had an unreadable font. So I went online to close the account and they refused to do it without a phone call. There is no money in the account anyway. I just told them to keep it open for 50 years if they wished. So they can be great or lousy. Watch for bad signs early on to distinguish which category they fall into. ---
**Author:** ![Doctor](https://avatars.discourse-cdn.com/v4/letter/d/e0b2c6/32.png) [@Doctor](https://boards.straightdope.com/u/Doctor)\ **Post date:** [October 10, 2011, 2:09am UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/23 "2011-10-10T02:09:55Z")
Understood. It is why I am asking around a bit before committing to anything. I have a little bit of time before my bank starts with its new fee structure, so I want to make sure I have something decent as I’d prefer not to change my account again for at least a few years. ---
**Author:** ![Doctor](https://avatars.discourse-cdn.com/v4/letter/d/e0b2c6/32.png) [@Doctor](https://boards.straightdope.com/u/Doctor)\ **Post date:** [October 10, 2011, 7:56pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/24 "2011-10-10T19:56:53Z")
> [@Dewey\_Finn](#): > > Note that ING Direct is being taken over by Capital One, so I wouldn’t go with ING Direct if you have any animosity toward Capital One. Never had any dealings with Capitol One. Is the take over likely to generate any changes in ING Direct? That is something I’d like to avoid as the changes are what drives me nuts! ---
**Author:** ![echoreply](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/echoreply/32/3641_2.png) [@echoreply](https://boards.straightdope.com/u/echoreply)\ **Post date:** [October 10, 2011, 8:16pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/25 "2011-10-10T20:16:56Z")
I’ve been using State Farm Bank (the same as the insurance company) as my primary bank for a decade or so. Other than a couple in Indiana, I don’t believe they have any branches. It’s all online and through the mail. Nice features: [ul] [li]Free bill pay. Direct transfer to major companies, or free mail-a-check to anybody not in their system. Schedulable.[/li][li]Electronic transfer in/out of my other non-State Farm accounts. Schedulable.[/li][li]Electronic transfer out to other peoples bank accounts. Not schedulable.[/li][li]Photo smart phone check deposit or scanner based PC check deposit.[/li][li]ATM fee reimbursement.[/li][li]Pre-paid envelope mail in deposits.[/li][/ul] The only bad feature is the terrible interest rates, which probably aren’t much worse than most major banks. If there’s an internet bank with better interest and similar features (there probably is), then they might be worth looking into. I also have insurance through State Farm and my accounts are linked, so I can view everything with one login, but that wasn’t an important feature for choosing them as a bank. State Farm is a large company, and particularly on the insurance side, I’m sure they’ve screwed over lots of people. _I’ve_ never had a problem with them, and the few times I’ve contacted the bank’s customer service they’ve been pleasant and were able to quickly help me. One example is getting a 3-4 year old canceled check so I could prove to the state I’d paid my state income taxes. ---
**Author:** ![Ludovic](https://avatars.discourse-cdn.com/v4/letter/l/7ab992/32.png) [@Ludovic](https://boards.straightdope.com/u/Ludovic)\ **Post date:** [October 10, 2011, 8:20pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/26 "2011-10-10T20:20:38Z")
I banked with NetBank for awhile, for a place to park my money market funds back when money markets actually paid interest, and then they got taken over by AIG. Not only did they pay slightly less interest than NetBank but they had a silly password requirement that would lock your account after like 3 tries and would only reset by mail. So it wasn’t then worth it to me to go through the hoops of remembering passwords that I only use once a month if that, in order to get less than 1% interest. ---
**Author:** ![Doctor](https://avatars.discourse-cdn.com/v4/letter/d/e0b2c6/32.png) [@Doctor](https://boards.straightdope.com/u/Doctor)\ **Post date:** [October 10, 2011, 9:06pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/27 "2011-10-10T21:06:54Z")
Yeah - 3 tries and I might be in trouble on some of my passwords! But, I gather no other real problems with using them other than the hassle of getting locked out of your account? ---
**Author:** ![LawMonkey](https://avatars.discourse-cdn.com/v4/letter/l/d6d6ee/32.png) [@LawMonkey](https://boards.straightdope.com/u/LawMonkey)\ **Post date:** [October 10, 2011, 10:18pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/28 "2011-10-10T22:18:53Z")
> [@treis](#): > > Schwab is the shit. > > No foreign transaction fees, they refund ATM fees, and have really good customer service. > > You have to sign up for a brokerage account to get it, but I don’t recall any requirement to use it. They are great at that too. They have a bunch of index funds that have ridiculously low expense ratios and no transaction fees. Seconded. I signed up with Schwab when I was going to be overseas for some few months, and I’ve never seen any reason to go back. You do have to _open_ a brokerage account, but you don’t actually have to _fund_ it. You can just let it sit there with a zero balance forever, which is more or less what I’ve done so far (and probably will continue to do, as my investing options are somewhat constrained by my job). Might be less appealing if I was depositing a lot of paper checks or cash, but it’s worked damn well for me with my direct deposit and such. ---
**Author:** ![Ludovic](https://avatars.discourse-cdn.com/v4/letter/l/7ab992/32.png) [@Ludovic](https://boards.straightdope.com/u/Ludovic)\ **Post date:** [October 11, 2011, 1:49am UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/29 "2011-10-11T01:49:44Z")
I never really did a lot with the money when it was in ING. But when I had NetBank, it was a hassle getting a Cashier’s Check, having to wire the money to my WaMu account, then waiting for the wire to clear, then getting the cashier’s check from Wamu, but that was because I had to have it the next day. With ING their transfer-to-brick-and-mortar utility might work faster. ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [October 11, 2011, 1:51am UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/30 "2011-10-11T01:51:20Z")
> [@Dewey\_Finn](#): > > Note that ING Direct is being taken over by Capital One, so I wouldn’t go with ING Direct if you have any animosity toward Capital One. I did not know that. ---
**Author:** ![Measure\_for\_Measure](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/measure_for_measure/32/557_2.png) [@Measure\_for\_Measure](https://boards.straightdope.com/u/Measure_for_Measure)\ **Post date:** [October 11, 2011, 6:51am UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/31 "2011-10-11T06:51:43Z")
> [@Doctor](#): > > Never had any dealings with Capitol One. Is the take over likely to generate any changes in ING Direct? That is something I’d like to avoid as the changes are what drives me nuts! Yes, I think it’s likely that there would be policy changes in the next 4 years or so under such circumstances. ---
**Author:** ![Doctor](https://avatars.discourse-cdn.com/v4/letter/d/e0b2c6/32.png) [@Doctor](https://boards.straightdope.com/u/Doctor)\ **Post date:** [October 11, 2011, 4:28pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/32 "2011-10-11T16:28:23Z")
> [@Measure\_for\_Measure](#): > > Yes, I think it’s likely that there would be policy changes in the next 4 years or so under such circumstances. I think that takes them out of the running for me. > [@LawMonkey](#): > > Seconded. I signed up with Schwab when I was going to be overseas for some few months, and I’ve never seen any reason to go back. You do have to _open_ a brokerage account, but you don’t actually have to _fund_ it. You can just let it sit there with a zero balance forever, which is more or less what I’ve done so far (and probably will continue to do, as my investing options are somewhat constrained by my job). > > Might be less appealing if I was depositing a lot of paper checks or cash, but it’s worked damn well for me with my direct deposit and such. So, the only option on deposits is Direct Deposit or mail it in? No taking a scan of a check or anything like that? Of course, that is not much different from anyone else. Not that many places are going with the scan a check to deposit model as yet. ---
**Author:** ![Clothahump](https://avatars.discourse-cdn.com/v4/letter/c/51bf81/32.png) [@Clothahump](https://boards.straightdope.com/u/Clothahump)\ **Post date:** [October 11, 2011, 5:03pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/33 "2011-10-11T17:03:49Z")
> [@Dewey\_Finn](#): > > Note that ING Direct is being taken over by Capital One, so I wouldn’t go with ING Direct if you have any animosity toward Capital One. As one of millions who have had bad experiences with Capital One, count me as being a future ex-ING account holder. ---
**Author:** ![jharvey963](https://avatars.discourse-cdn.com/v4/letter/j/54ee81/32.png) [@jharvey963](https://boards.straightdope.com/u/jharvey963)\ **Post date:** [October 11, 2011, 5:22pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/34 "2011-10-11T17:22:25Z")
I’ve been using Etrade Bank for a decade now. No fees. ATM fees are refunded. (Tiny, currently) interest on your checking account. Free Bill Pay. There is a minimum balance you have to maintain, but I don’t remember what it is. I don’t have any complaints. J. ---
**Author:** ![Clothahump](https://avatars.discourse-cdn.com/v4/letter/c/51bf81/32.png) [@Clothahump](https://boards.straightdope.com/u/Clothahump)\ **Post date:** [October 11, 2011, 5:31pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/35 "2011-10-11T17:31:28Z")
> [@Doctor](#): > > No taking a scan of a check or anything like that? Of course, that is not much different from anyone else. Not that many places are going with the scan a check to deposit model as yet. Ally is currently beta-testing an E-deposit system. Planned rollout is later this fall. ---
**Author:** ![Doctor](https://avatars.discourse-cdn.com/v4/letter/d/e0b2c6/32.png) [@Doctor](https://boards.straightdope.com/u/Doctor)\ **Post date:** [October 11, 2011, 6:13pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/36 "2011-10-11T18:13:10Z")
> [@Clothahump](#): > > Ally is currently beta-testing an E-deposit system. Planned rollout is later this fall. That’s good info. Where did you find the data on this as I have been perusing their site and didn’t see that. ---
**Author:** ![AndyLee](https://avatars.discourse-cdn.com/v4/letter/a/898d66/32.png) [@AndyLee](https://boards.straightdope.com/u/AndyLee)\ **Post date:** [October 11, 2011, 6:30pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/37 "2011-10-11T18:30:30Z")
What is their fee to use the debit card at a store? I looked on the site but I guess I’m missing it. I assume you can just use the ATM like a credit card to avoid the debit card fee. But place in Chicago like Aldi Food only take debit cards ---
**Author:** ![Trom](https://avatars.discourse-cdn.com/v4/letter/t/958977/32.png) [@Trom](https://boards.straightdope.com/u/Trom)\ **Post date:** [October 11, 2011, 6:42pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/38 "2011-10-11T18:42:47Z")
> [@Doctor](#): > > … > > So, the only option on deposits is Direct Deposit or mail it in? No taking a scan of a check or anything like that? Of course, that is not much different from anyone else. Not that many places are going with the scan a check to deposit model as yet. Schwab _does_ offer mobile deposits via smart phone: [http://content.schwab.com/mobile/mobile-deposit.html](http://content.schwab.com/mobile/mobile-deposit.html) ---
**Author:** ![Doctor](https://avatars.discourse-cdn.com/v4/letter/d/e0b2c6/32.png) [@Doctor](https://boards.straightdope.com/u/Doctor)\ **Post date:** [October 11, 2011, 6:44pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/39 "2011-10-11T18:44:57Z")
Oh, I see. They have it is a separate service you have to apply for. Funny. ---
**Author:** ![Trom](https://avatars.discourse-cdn.com/v4/letter/t/958977/32.png) [@Trom](https://boards.straightdope.com/u/Trom)\ **Post date:** [October 11, 2011, 6:53pm UTC](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083/40 "2011-10-11T18:53:44Z")
> [@Doctor](#): > > Oh, I see. They have it is a separate service you have to apply for. Funny. Yeah, I’m not quite sure why that is. I haven’t tried it out. There’s a Schwab brokerage office near my workplace, so I just make my deposits there. [Previous page](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083.md?page=1) [Next page](https://boards.straightdope.com/t/anybody-ever-use-an-internet-only-bank/599083.md?page=3)