Top Four Online Only Banks

Author:     Wednesday, February 12, 2014 12:00 AM

Twenty-four hour banking from an Internet connection. Higher interest rates on deposits. All the service and options you can get from a traditional brick and mortar bank, with added convenience of scan and deposit checking.

Yes, there are a variety of reasons to select an online bank over a traditional establishment. But not all online banks are the same. When it comes to selecting an online bank to join, fees, minimum balance requirements and other fine details can make the difference between a good or poor online banking experience. With that being said, here's a look at the top five online-only banks:

Ally: According to CNN Money, Ally took top honors out of 15 online-only institutions that were analyzed. So what makes Ally such a good bank? For starters, it offers fee-free checking and savings accounts. What's more is that Ally bankers can use an ATM to withdraw funds without having to pay a fee or surcharge. And lastly, Ally offers good interest rates on checking and savings accounts - 0.4 percent on funds up to $15,000 and 0.75 percent above $15,000

ING Direct: ING Direct was named one of PC Mag's "Five Great Internet Banks" due to its absence of monthly fees and minimums to open accounts. While bankers may be subject to ATM fees, ING Direct has a relationship with ATMs with Allpoint affiliation, of which there are an estimated 43,000 nationwide - so there's certainly plenty of options for fee-free ATM use. ING Direct also offers interest checking accounts and charges a manageable overdraft fee of just 3.1 cents per day on overdrafts of at least $100.

Connexus Credit Union: No monthly fees and no account minimum. No affiliation with ATMs, but up to $25 in reimbursement each month for fees accrued. Mortgage, home equity, student loans and personal loans. Those are just a few of the banking benefits with another top online bank in the U.S. - Connexus Credit Union. Another benefit is its "Xtraordinary Checking," which offers APY up to 2 percent on up to $25,000.

Bank of Internet USA: While there are no monthly fees, it does cost $100 to open an account with Bank of Internet USA. However, there is unlimited ATM reimbursement with its Rewards Checking and up to $8 in reimbursement with its High Interest Checking plan. Bank of Internet USA claims that it's the "oldest and most trusted online bank." Other benefits include overdraft protection and high yield savings accounts.

Source: BFI