Since they have few or no branches, most national online banks do not
charge ATM fees. In addition to that, online banks often offer
customers a higher interest rate for their holdings.
Below is an excerpt from this article:
Bankrate: "Online banking still a better deal, but not by much" By
Laura Bruce
http://www.bankrate.com/brm/news/chk/20020328d.asp?prodtype=bank
"...85 percent of Internet banks don't charge their customers for
using another bank's ATMs, while 88 percent of traditional banks do
charge customers for using non-bank ATMs.
And most Internet banks, 62 percent, reimburse their customers for
surcharges assessed when using another bank's ATM. This number has
stayed fairly consistent for at least the past year."
This excerpt is from another Bankrate survey article:
Bankrate: "Online vs. offline checking accounts" By Michael D. Larson
"Online accounts blow the competition away in just about every
category. The average yield on interest-bearing Web accounts was 3.85
percent in the most recent survey -- more than triple the 1.17 percent
average among traditional interest-paying checking accounts. Someone
with $5,000 to park in an online account would have $5,193 after a
year, almost $150 more than any chump foolish enough to stash money
away at a bank down the street...
'The clear advantage of Internet checking accounts over those of
traditional brick-and-mortar banks are higher yields, a higher
proportion of free accounts and much lower balance requirements,'
McBride wrote.
Online banks make it much cheaper for customers to get at their money
electronically too. Only 8 percent of offline banks allow account
holders to make withdrawals at ATMs they don't own without charging a
fee, where as 88 percent of online ones do. A majority of the Web
banks reimburses customers for surcharges assessed by ATM owners too.
Most cover four charges a month up to $1.50 each."
When you consider that the national average for Interest Checking is
0.35% and the national average for Interest Savings is 1.16%, these
offerings compare favorably, in addition to their lack of ATM fees.
Here's a list of some of the best known online banks without ATM fees:
Etrade Bank (1.21% - 1.41% Interest Checking)
http://bank.etrade.com/
NetBank (1.51% - 2.10% Interest Checking)
http://www.netbank.com/
First Internet Bank of Indiana (1.54% Interest Checking)
http://www.firstib.com/
I was going to list ING as well, but, I don't think they offer ATM
cards (or there is not indication on their web site that you can use
the ATM). Still they may have a product that you want to explore
further, to link to whichever ATM account you open.
ING (2.25% Interest Rate for Orange Savings Account)
http://www.ingdirect.com/
You can find an excellent comparison of rates at Bankrate.com:
http://www.bankrate.com/
For a longer list of banks without ATM charges (both online banks and
"brick and mortar" banks, you can find it for your market here:
http://www.bankrate.com/brm/rate/brm_atmsearch.asp |
