Anyone use an online bank?

[jason05gt]

I am looking at a custodial account for my son for savings. Anyone use an online bank like Ally? If so, any pro's or con's to using it compared to a traditional brick and mortar bank? Online banks seem to have much high interest rates that's what's attractive to me. Thanks!

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[OffshoreDrilling]

@%1;

 

[Gone_2022]

Most everything is done online already. I rarley if ever go into a branch for my bank. With the ability to take photos of checks etc kinda defeats the purpose of an actual building.

They are able to offer a better interest rate because they have less overhead. They dont have to pay for the actual branches and everything that comes along with having a physical location.


The one downside would be to deposit actual cash. I do not believe there is a way to do that. You would have to depost the cash into an account that you have with an actual brick and mortar type bank. Then transfer that money to the online bank such as Ally.

 

[Lord Tin Foilhat]

Most everything is done online already. I rarley if ever go into a branch for my bank. With the ability to take photos of checks etc kinda defeats the purpose of an actual building.

They are able to offer a better interest rate because they have less overhead. They dont have to pay for the actual branches and everything that comes along with having a physical location.


The one downside would be to deposit actual cash. I do not believe there is a way to do that. You would have to depost the cash into an account that you have with an actual brick and mortar type bank. Then transfer that money to the online bank such as Ally.

Or buy a cashiers check with the cash

 

[Gone_2022]

Or buy a cashiers check with the cash

Yea either way it just takes a little more work in that aspect.

 

[Lord Tin Foilhat]

Yup that's the only real downside. No physical location and no cash deposits.

 

[jason05gt]

That's not an issue. I can take cash and write my son a check.

 

[Lord Tin Foilhat]

Then go for it. I use capital one 360 online banking for my savings and have had no issues. If anything, its better than TCF and I should commit and switch everything over

 

[Intel]

Anything in the world is better then TCF. Was never so happy in my life to end a bank account as when I graduated from NIU and cancelled that thing.

I work for Discover and use their online banking without issue. 24/7 support with people in the US is always nice for if you do need to make a phone call.

 

[cacicgtp7]

I have chase, USAA (which is basically an online bank since there aren't any branches) and also American Express has a savings online bank as well.

I've only gone into a physical bank 2 times in the past 5 years, but it was when I was in San Antonio and needed a giant cashier's check from USAA. Everything else you never need to go into including bill pay, checks, free ATM fee's, deposits ect... Almost all deposits I do with my phone (take a picture of the check and boom it's there).

I keep Chase because they have so many ATM's around the United States that you can use one for cash deposits. Literally the only reason I have an account.

Go for it.