 | Low: Free |
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 | Fees: $1-$10 Per Month |
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| Online banking permits customers to view accounts and monthly statements, make deposits and conduct money transfers, all from a personal computer. As a related service, people with checking accounts can also pay bills online, while some institutions allow customers to view their accounts or conduct online banking from a mobile phone or other internet-enabled device. | | |
| Typical costs: | - Online banking is often free but there may be charges of $1 -$10 for accounts and fees for related services, depending on account balances and individual bank policies. For example, SunTrust offers free checking accounts; the Georgia-based bank, which operates branches throughout the South, does not pay interest and requires no monthly minimum balance with a $100 minimum opening deposit. However, accessing images of cleared checks costs an additional $1 per month. Online banking services are also free at Ballston Spa National Bank, which operates branches in upstate New York and offers free checking for accounts containing a $500 average daily balance. A $3-per-month fee assessed if the checking balance falls to $499 or less.
- Online banking deposits are typically made at ATMs, and there may be fees associated with using ATMs outside of the banks' direct network. SunTrust accepts deposits to online accounts only at SunTrust ATMs or by mail. Depending on the type of checking account held, cash withdrawals made at other ATMs can result in a $2 charge from SunTrust, plus an additional fee from the bank that owns the ATM. Premium checking account holders who maintain a minimum $5,000 balance don't pay extra to use non-network ATMs and are reimbursed for any ATM fees assessed by other banks.
- Online banking is free at Bank of America in conjunction with various checking accounts, including one account that's free with a $1,500 minimum balance or monthly direct deposits of at least $250. The company's e-banking account requires no minimum balance, but requires customers to receive only electronic statements and perform all deposits and withdrawals at ATMs. Visit an in-person teller and there's an $8.98 per month charge.
- Veteran online bank ING Direct says checking accounts associated with its online banking service do not carry additional fees or require a minimum balance. Charles Schwab Bank also doesn't require a minimum monthly balance and says it reimburses fees other companies charge to use their ATMs.
- Wells Fargo customers receive free online banking if they hold one of several checking accounts. The Custom Management account is free with a $1,000 daily balance or if the account receives a direct deposit of at least $100 per month. Otherwise, the monthly cost is $10. ATM transactions are free at Wells Fargo or affiliated Wachovia ATMs. There's a $2.50 charge for each withdrawal made from non-member ATMs and those out-of-network ATMs may also charge an additional fee for the same transaction.
What should be included: | - Online banks should enable customers to easily find ATMs in the network. ING Direct, for example, permits account holders to search for in-network ATMs on its website.
- Online banks should have toll-free phone numbers or email addresses for consumers to ask questions. Some smaller financial institutions, including American Bank of Texas, offer live telephone service support only on weekdays. Citibank's customer service telephone lines are open 7 days a week, as are ING Direct's and BankAtlantic's.
Additional costs: | - To prevent financial and personal information transmitted over the internet from being intercepted by unauthorized outsiders, the Federal Deposit Insurance Corp. provides security suggestions.
- Some companies allow banking transactions executed online to be directly downloaded into personal finance trackers including Quicken; SunTrust charges $5.95 per month for that service.
- Some online banks limit how often customers can withdraw money from ATMs or use their debit card without incurring extra fees, according to BankRate.com. For example, Nebraska-based FNBO Direct charges $1 each time an online account holder uses a non-Circle One ATM to check an account balance, a fee waived if the prior month's balance was $25,000 or more.
Shopping for online banking: | - Not all banks operating on the internet -- particularly institutions chartered outside the U.S. -- are insured by the FDIC, and customers may not be reimbursed by regulators should the bank fail. Check a bank's status using the FDIC's Bank Find tool.
- Research the most favorable interest rates at Bankrate.com.
- The FDIC has detailed information about online banking regulation and where to file complaints, as well as other consumer rights issues.
- Consumer Reports has information about mobile banking and costs.
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Article updated June 2011 |
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