Who uses any of those Online only banks?

[ShadowArmy]

Banks like Ally or Netbank?

I've been thinking about transferring some funds from my savings account of my current bank (earning 0.05%-0.2% interest) to one that may offer 1%+. Are they legitimately trustworthy even though there are no physical locations (omg what if there's a virus??)

 

[CyberPitz]

I don't, just because I'm already distrusting of the internet enough.

 

[Escaep]

I'd stick with a trustworthy, known bank if I were you.

 

[McGooTheWise]

Money transactions through the internet are risky enough, but when you can only access your entire savings through the internet, you're asking for trouble. My bank has online banking services, but they're also a county bank, so I know that my money is secure. You can't interact with your cash online, just see the transactions you've made. I'd much prefer that to actually being able to access that.

Just go to your local bank and open up a checking account. It takes a while, but it's easy, and it's convenient.

 

[joule]

Absolutely. Online banks, that are FDIC insured, offer the same protection for your dollars as your conventional local branches. You will actually find that more online-only banking sites yield higher returns when it comes to CD's, MMAs, and so forth. I opened up a savings account with Sallie Mae several months ago and I have no complaints.

 

[Remus]

I use a real "brick and mortar" bank. As for online transactions, I've only used either my visa card, or paypal. So far so good.

 

[PvtRyan]

Wow, I thought I got screwed at only 2% interest. It was 4% when I put my money in.