Online banking is here to stay. Let's look at 7 winners capturing the attention of American consumers.
You have seen their ads and you may have wondered if they are worth a
second look. What am I talking about? Online banks! Also known as
internet banks, these are financial institutions who provide the
majority of their banking services over the internet. Typically, online
banks offer consumers high savings rates, low loan rates, and a mix of
other services. Let's look at 7 winners in this fast growing field:
1. E Trade Bank Part of E Trade Financial, the discount internet
stockbroker. E Trade Bank offers checking accounts, money markets, and
certificates of deposits as well as a VISA credit card.
2. Netbank Along with offering checking and money market
accounts, Netbank provides mortgage and home equity lines of credit to
customers. With tie-ins to affiliated companies Netbank also offers
Auto, Homeowners, Condo/Co-op & Renters Insurance and Life, Health,
Long Term Care & Dental Insurance.
3. Virtual Bank VirtualBank, a division of Lydian Private Bank,
is a federally chartered bank regulated by the Office of Thrift
Supervision. The bank offers checking, savings, and credit card
services to customers.
4. Ever Bank This leading internet provider of banking services
offers the most extensive, and varied services of any online
institution. Ever Bank offers business and personal checking accounts,
mortgages, home equity loans/lines of credit, reverse mortgages, a VISA
credit card, and world currency accounts. This latter category is for
investing in Deposit accounts and CDs denominated in any major world
currency.
5. Emigrant Direct Part of Emigrant Savings Bank which traces
its roots back to 1850 as a service provider to Irish immigrants.
Emigrant has $10 billion in assets and more than $1 billion in net
worth. It operates as a full service bank through 36 branches in the
New York metropolitan area, and through EmigrantDirect.com. Emigrant
offers only consumer services online; their high paying savings account
is a chief investment vehicle.
6. ING Direct ING is a global financial institution of Dutch
origin offering banking, insurance and asset management to over 60
million private, corporate and institutional clients in more than 50
countries. ING offers mortgages, loans/lines of credit, savings
accounts, certificates of deposit, and money market mutual funds
through another division.
7. MetLife Bank Yes, MetLife. A division of insurance powerhouse
Metropolitan Life, MetLife Bank offers savings accounts, certificates
of deposit, money market accounts, mortgages, and IRAs to consumers.
If you are banking exclusively with a "brick and mortar" institution
you may be missing out on high paying investment options or competitive
loan rates that easily undercut many traditional banking entities.
These online banking success stories are only part of a growing number
of savvy providers, some of whom are definitely worth a closer look by
you, the consumer.
